Interim Report January-March 2010
First quarter 2010
• Consolidated revenues for the first quarter of 2010 amounted to SEK 955.2 M
(1,007.5), a decline of 5.2 percent. Currency effects amounted to -7.2 percent
(13.2). Organic growth was 1.4 percent (4.8).
• Operating earnings (EBIT) amounted to SEK 157.0 M (156.4). Revenues and
operating earnings include net purchased debt revaluations of SEK -2.4 M
(-20.3). Excluding these items, operating earnings (EBIT) were SEK 159.4 M
(176.7), corresponding to an operating margin of 16.6 percent (17.2).
• Net earnings for the first quarter amounted to SEK 100.4 M (97.8) and earnings
per share before dilution amounted to SEK 1.26 (1.23).
• Investments in purchased debt amounted to SEK 170.8 M (110.7).
Comment by President and CEO Lars Wollung:
Adjusted for currency fluctuations, operating earnings rose by 9 percent over
the first quarter of the year and revenues by 2 percent. The trend was favorable
in the regions United Kingdom & Ireland and Netherlands & Belgium. Considering
market conditions, the quarter was highly satisfactory in the region France,
Spain, Portugal & Italy.
The improvement program in the region Sweden, Norway & Denmark continues and
operating earnings there rose by 7 percent compared with the preceding year. The
region Switzerland, Germany & Austria has also initiated extensive programs of
measures that, with time, will lay the foundation for better capacity for
sustainable earnings. Operating earnings rose by 13 percent compared with the
fourth quarter of 2009.
Although the negative trend continues in the region Poland, Czech Republic,
Slovakia & Hungary, a rigorous program has begun, combining investments and
personnel cutbacks, and this is expected to generate visible effects in the
latter half of 2010.
In the region Finland, Estonia, Latvia & Lithuania, the revenue increase in CMS
amounts to more than 10 percent in local currencies. However, earnings were
weakened as a consequence of increased collection costs. The principal decline
in earnings is attributable to the Purchased Debt service line in the region.
The portfolio mix continues to be adjusted towards a larger proportion of
fresher receivables, entailing a lower level of risk but also a lower margin.
The trend in the Purchased Debt service line was favorable with a return of 15.7
percent for the quarter, compared with 11.4 percent for the year-earlier period.
In the Credit Management service line, operating earnings amounted to SEK 106 M;
unchanged compared with the seasonally stronger fourth quarter in 2009. Compared
with the first quarter of 2009, operating earnings fell by 4 percent adjusted
for currency fluctuations. A number of activities to boost sales and strengthen
our market position are in progress in several countries.
Lars Wollung, President and CEO
Tel.:+46 (0)8 546 10 202.
Bengt Lejdström, Chief Financial Officer,
Tel.: +46 (0)8 546 10 237, mobile: +46 (0)70 274 2200.
Intrum Justitia is Europe's leading Credit Management Services (CMS) group and
offers services designed to measurably improve clients' cash flows and long-term
profitability. Intrum Justitia was founded in 1923, has around 3,400 employees
in 22 countries and revenues of approximately SEK 4.1 billion in 2009. Intrum
Justitia AB is listed on Nasdaq OMX Stockholm since 2002. For further
information, please visit www.intrum.com
