Interim Report July-September 2019

Strong profit growth and solid operational performance

Third quarter, July-September 2019:

• Consolidated net revenues increased to SEK 3,786M (3,180).

• Adjusted EBIT increased to SEK 1,476M (1,095).

• Net debt / cash EBITDA amounted to 4.4x (3.8x).

• Portfolio investments amounted to SEK 831M (927). Return on portfolio investments increased to 15 per cent (13).

• Net profit increased to SEK 579M (396), and earnings per share increased to SEK 4.26 (3.02).

• Cash flow from operating activities increased to SEK 1,306M (1,214).

Comment by President and CEO Mikael Ericson

“The third quarter was another active quarter for Intrum. We took several successful steps to extend and normalise our debt maturity profile on attractive terms, which reflects our market leading position and low-risk business profile. The positive trend of good earnings growth continued during the period, with adjusted operating profit (EBIT) increasing by 35 per cent compared to the same period last year.

Our portfolio investment business delivered an ROI of 15 per cent for  the period, in line with previous quarters and above our target of 13 per cent. As in the first half of the year, we continue to see an attractive market environment with both strong supply and stable to improving levels of portfolio returns. CMS operations performed slightly above our expectations, although Spain is continuing to experience headwinds. The adjusted service line margin of 24 per cent represents a contraction compared to Q2 and last year, owing to our more pronounced seasonality linked to our added footprint in southern Europe.

As part of our efforts to increase operational efficiency, we launched an efficiency improvement programme in July, targeting EUR 60 million in bottom line impact. The programme is progressing, and we started to see some initial benefits in terms of common costs towards the end of the quarter.”

For further information, please contact:
Viktor Lindeberg, Head of Investor Relations
+46 (0) 8 546 102 02

This information is information that Intrum AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Market Act. The information was submitted for publication, through the agency of the contact person set out below, at 07:00 CET on October 23, 2019.