- Consolidated net revenues for the first quarter of 2014 amounted to SEK 1,204 M (1,048).
- Operating earnings (EBIT) amounted to SEK 283 M (236). Operating earnings were burdened by revaluations of purchased debt portfolios amounting to a negative SEK 10 M (4).
- The operating margin was 24 percent (23), including revaluations of purchased debt portfolios.
- Net earnings for the quarter amounted to SEK 184 M (155) and earnings per share were SEK 2.35 (1.94).
- Disbursements for investments in purchased debt amounted to SEK 688 M (920).
- Cash flow from operating activities amounted to SEK 530 M (464).
Comment by President and CEO Lars Wollung
Intrum Justitia’s development was favorable in the first quarter of 2014. Income rose by 15 percent and operating earnings rose by 18 percent compared with the year-earlier period, adjusted for revaluations of purchased debt portfolios and currency effects. Cash flow from operations increased by 14 percent and earnings per share rose by 21 percent.
During the quarter, development was strong in Western and Central Europe. In Western Europe, the increase is mainly being driven by improved growth and profitability in Credit Management, while Central Europe has enjoyed good development as a consequence of increased investment in Purchased Debt. In Northern Europe, our growth has been lower with relatively large differences between individual countries.
The Financial Services service line continues to develop stably with a 25-percent increase in income and a return on purchased debt of 19 percent – well above the Group’s return requirement of 15 percent. The level of investment in Purchased Debt amounted to SEK 688 M for the quarter, approximately 25 percent lower than in the very strong first quarter last year.
The Credit Management service line had good growth in income in the first quarter due to increased volumes from Purchased Debt portfolios and a certain amount of acquired growth. Service line earnings were of a similar level as last year although margins were somewhat lower. Work to increase efficiency in the collection process, thereby improving margins in the service line, is progressing according to plan.
We are continuing our efforts to extend our offering in services involving financing solutions before receivables mature or in connection with their maturing. The Swedish and Finnish operations are developing as planned, while our Dutch unit has not lived up to our expectations, which is why we are working on adjusting our costs and restructuring that unit.
Presentation of the Interim Report
The interim report and presentation material are available at www.intrum.com > Investor relations. President & CEO Lars Wollung and Chief Financial Officer Erik Forsberg will comment on the report at a teleconference today, starting at 9:00 a.m. CET. The presentation can be followed at www.intrum.com and/or www.financialhearings.com. To participate by phone, call +44 (0) 20 766 020 77(UK) or +46 (0) 8 519 990 30 (SE).
For further information, please contact
Lars Wollung, President & CEO, Tel.: +46 (0)8-546 102 02
Erik Forsberg, CFO, Tel.: +46 (0)8-546 102 02