Intrum announces latest results

European debt purchasers Intrum has announced its latest quarterly results.

Mikael Ericson, President and CEO for Intrum said “We are pleased with a strong second quarter and are delivering gradually improving results across all areas of the business: solid investment level whilst maintaining returns, pricing discipline, excellent collection performance, hitting the improved synergy targets, improving CMS margins and starting to see some tentative signs of organic CMS revenue growth. Looking forward we are encouraged by positive signs of increasing momentum in the business. We see an attractive market in which we, as the leading European player, will be able to capitalize on our competitive strength and diversified footprint. We know that it may not always be a continuous upwards path but we remain confident in our ability to deliver all of our 2020 targets.”

Highlights included:

• Increased earnings – Operating earnings, adjusted for non-recurring expenses, revaluations and items affecting comparability increased to SEK 1195 million, up 20% versus last year
• Strong quarter for portfolio investments – Portfolio investments of SEK 2.4 billion. Portfolio carrying value increased by 29% year on year and ROI remains at 15 per cent, same level as Q1
• Improved CMS margin – 28%, up from 25% in Q1
• On-track with improved synergy targets – Run rate synergies of SEK 380 million realised so far
• Strong  cash flow from operations – SEK1.7 billion taking Net Debt / Cash EBITDA to 3.8x