The Swedish servicer and debt buyer Intrum, listed in Stockholm has announced the closing data for the first quarter of 2024.
Adjusted Income and adjusted EBIT rose to 4,891 million Swedish crowns (approximately 447.5 million euros) and 1,155 Swedish crowns respectively, with an increase of approximately 8% compared to the first quarter of 2023, driven by M&A operations in servicing. The leverage ratio remained virtually unchanged at 4.4x
Progress is being made on several strategic initiatives, including the operation of Ophelos (https://ophelos.com) in the Netherlands, cost reduction actions of approximately SEK 500 million in Q1 ’24 and the implementation of cost containment measures for a further 700 million SEK planned and to be implemented in 2024 and 2025.
Cash EBITDA rises slightly from SEK 2,728 million in the first quarter of 2023 to the current SEK 2,782 million
Revenues from external servicing activities grew by 16% over the same reference period of the previous year, while the liquidity available at the end of the quarter amounted to SEK 9 billion.
The CEO and President of the group Andrés Rubio, in highlighting how the first quarter is seasonally the substantially calmest one, confirms how the data are in line with expectations and above all with the objectives presented during the last Capital Markets Day. With inflation still ongoing and the parallel need to improve margins, the group concentrates its efforts on exploring further measures in the field of cost reduction. Measures have been identified that will generate savings of approximately SEK 400 million in the remaining quarters of 2024 and a further approximately SEK 300 million in 2025.
Commercial activity for the sale of services continues to accelerate with an 11% increase in signed “ACV”, the parameter that indicates the value of annual contracts, which stands at SEK 278 million compared to SEK 251 million in Q1 2023. Among the most significant agreements signed in the quarter were those with a large Norwegian BNPL (Buy Now Pay Later) company, a mandate with EDF in France and a mandate in the consumer credit sector in the UK. The increase in cash collection generated was decided from recovery activities on the property portfolio. Rubio is satisfied with the launch of Ophelos in the Netherlands, a strategic step in the path of improving operational performance and digital transformation. He also announces that Ophelos will be launched in at least two other countries during the year.
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