Year-end announcement 2018

-  A strong end to the year

Fourth quarter 2018:

• Consolidated net revenues for the fourth quarter of 2018
  increased to SEK 3,517 M (3,101).

• Adjusted EBIT increased by 23 per cent to SEK 1,236 M (1,008).

• Cash flow from operating activities increased by 28 per cent and amounted to SEK 1,813 M (1,340).

• Portfolio investments, including investment in the joint venture with Intesa Sanpaolo, reached a record level of SEK 5,444 M (2,784) for the period. The return on portfolio investments was broadly stable at 16 per cent (15) including revaluations.

• In Credit Management Services, revenue growth was 7 per cent and the operating margin was 27 percent excluding non-recurring items.

• Cash EBITDA to Net Debt was 4.3x (4.1x) due the investments in the Intesa Sanpaolo partnership and Real Estate.

• The Board of Directors proposes a dividend of SEK 9.50 (9.50) per share, corresponding to a total of 1,250 MSEK (1,250).

Full year 2018:

• Consolidated net revenues for 2018 amounted to SEK 13,442 M (9,434). Pro forma, net sales in 2017 amounted to MSEK 12,219, an increase of 10 per cent.

• Adjusted operating profit (EBIT) increased to SEK 4,500 M by 15% versus the pro forma, adjusted operating profit (EBIT) in 2017 of SEK 3,925 M.

• Net profit amounted to SEK 1,943 M (1,503), and earnings per share were
  SEK 14.18.

• Cash flow from operating activities increased with 36 per cent to SEK 6,154 M (4,535).

• The carrying value of portfolio investments, including properties and participation in joint ventures, has increased by 40 per cent since the end of the previous year. The year's portfolio investments amounted to SEK 11,854 M (pro forma 7,857). The return on portfolio investments was 15 per cent (16).

• In Credit Management, revenue growth on a pro forma basis was 7 per cent and the operating margin was 27 per cent excluding non-recurring items.

Comment by President & CEO Mikael Ericson

“We deliver a strong conclusion to a solid year, in accordance with our strategy and our ambitious goals. In the final quarter adjusted operating profit (EBIT) increased by 23 per cent. Together with the solid results from the first nine months of the year, this gives us an impressive platform for 2019, during which we will increase the pace towards our targets for 2020” said Mikael Ericson, President and CEO of Intrum.

“In 2019, we will have a strong focus on centralisation, standardisation and cost efficiency in our collection activities. We expect to normalize our rate of investment during the year and extract significant value from the large investments we have made in 2018. At the same time, we see an active market with stable returns across Europe where our size and strong cash flow gives us flexibility to invest, when the opportunity is right, and continue to grow”, added Ericson.

Dividend proposal  

The Board of Directors of Intrum AB proposes that the Annual General Meeting distribute a dividend to the shareholders of SEK 9.50 per share (9.50), corresponding to a total of SEK 1,250 M (1250).

Presentation of the year-end report

Mikael Ericson, President & CEO, and Danko Maras, CFO, will comment the results in a live webcast on January 30 at 9:00 a.m. CET.

Link to live webcast 

To listen in to the conference live, please dial:

+44 33 3300 9271 (UK)
+46 8 5664 2706 (SE)
+1 646 722 4903 (US)

The year-end report and presentation are available at intrum.com/investors. 

For further information, please contact:

Thomas Moss, Group Business Control & Investor Relations Director,
tel: +46 8 546 102 02

This information is such that Intrum AB (publ) is required to disclose pursuant to the EU’s markets abuse directive and the Securities Markets Act. The information was released for publication on 30 January 2019 at 07.00 a.m. CET.

Intrum is the industry-leading provider of Credit Management Services with a presence in 24 markets in Europe. Intrum helps companies prosper by offering solutions designed to improve cash flows and long-term profitability and by caring for their customers. To ensure that individuals and companies get the support they need to become free from debt is one important part of the company’s mission. Intrum has more than 9,000 dedicated and empathetic professionals who serve around 80,000 companies across Europe. In 2018, revenues amounted to SEK 13.4 billion. Intrum is headquartered in Stockholm, Sweden and the Intrum share is listed on the Nasdaq Stockholm exchange. For further information, please visit www.intrum.com.