INTERIM REPORT JANUARY-MARCH 2012

25 Apr, 2012 07:00 CET

Intrum Justitia AB
Interim report

INTERIM REPORT JANUARY-MARCH 2012

Stockholm, 2012-04-25 07:00 CEST (GLOBE NEWSWIRE) -- 

  -- Consolidated net revenues for the first quarter of 2012 amounted to SEK
     961.3 M (931.8). Adjusted for currency effects, revenues rose by 3 percent
     with organic growth of 6 percent (1).
  -- Operating earnings (EBIT) amounted to SEK 160.0 M (165.7). The operating
     earnings include revaluations of Purchased Debt portfolios amounting to SEK
     -40.4 M (5.8). The operating margin was 16.6 percent (17.8). Excluding
     revaluations of Purchased Debt portfolios, the operating margin was 20.0
     percent (17.3).
  -- Operating earnings were burdened by a non-recurring item attributable to a
     provision of SEK -43.9 M for a Spanish legal case, of which SEK -41.6 M has
     been recognized as a revaluation. Excluding this cost, operating earnings
     amounted to SEK 203.9 M, corresponding to currency adjusted growth in
     operating earnings of 22.2 percent.
  -- Net earnings for the quarter amounted to SEK 92.2 M (108.8) and earnings
     per share were SEK 1.16 (1.35).
  -- Disbursements for investments in Purchased Debt amounted to SEK 295.2 M
     (370.0).
  -- Cash flow from operating activities remains strong, amounting to SEK 443.1
     M (322.8).

Comment by President and CEO Lars Wollung

For our business operations, 2012 has begun well with organic growth of 6
percent and an increase in operating earnings (EBIT) of 22 percent adjusted for
currency effects and excluding costs for a Spanish legal case. 

We have a strong financial position with cash flow from operating activities of
SEK 443 M in the first quarter and, in March, we broadened our loan financing
by issuing bonds for SEK 1 billion. Combined with our existing borrowing from
banks, this makes us well-equipped to continue our expansion, primarily in
Purchased Debt. 

Our Financial Services service line, which focuses primarily on Purchased Debt,
continues to develop well with good underlying margins and return. The level of
investment in forward-flow contracts was high in the first quarter, generating
stability in the form of repeated revenues, while non-recurring investments
fell somewhat in the first quarter compared to the same period last year. The
prospects to continue expanding and developing this business remain favorable. 

Our Credit Management service line is developing stably and growing in terms of
both revenues and operating earnings, despite continued macroeconomic
uncertainty in several countries where we maintain operations. The increased
pace of investment in Purchased Debt is driving volumes, although Credit
Management services on assignment for external customers are also showing
growth. We are continuing to increase our costs for taking more cases through
the legal systems, which contributes to long-term profitability even though the
effect on margins is negative in the short term. 

For the most part, our geographical regions developed well early in the year.
In Northern and Central Europe, we are experiencing good growth, driven
primarily by favorable growth in Purchased Debt portfolios. In Western Europe,
macroeconomic uncertainty has led us to limit our investments in Purchased
Debt, reducing the risk in that business but also affecting revenues and
margins negatively. 

During 2012, we will increase our focus on developing our service offering to
new and existing customer groups, particularly in the early part of the payment
chain in, for example, payment guarantees, factoring services and e-trade
payment services. 

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 +46 (0)8 505 597 72
(SE) or +44 (0)20 710 862 05 (UK). 

For further information, please contact

Lars Wollung, President & CEO Intrum Justitia AB (publ) Tel: +46 (0)8-546 10 200

Erik Forsberg, Chief Financial Officer, tel.: +46 (0)8-546 10 200

Annika Billberg, IR & Communications Director, tel.: +46 (0)8-545 10 203,
mobile: +46 (0)70 267 9791 



Intrum Justitia is Europe’s leading Credit Management Services (CMS) group,
offering comprehensive credit management services, including Purchased Debt,
designed to measurably improve clients’ cash flows and long-term profitability.
Founded in 1923, Intrum Justitia has some 3,300 employees in 20 markets.
Consolidated revenues amounted to SEK 4 billion in 2011. Intrum Justitia AB has
been listed on the NASDAQ OMX Stockholm exchange since 2002. For further
information, please visit www.intrum.com.