Intrum AB (publ) (ITJTQ) Q4 2024 Earnings Call Transcript

2025-01-30 14:14:05 ET

Intrum AB (publ) (ITJTQ)

Q4 2024 Earnings Conference Call

January 30, 2025 03:00 AM ET

Company Participants

Andres Rubio - Chief Executive Officer

Johan Akerblom - Chief Financial Officer

Conference Call Participants

Jacob Hesslevik - SEB

Patrik Brattelius - ABG

Ermin Keric - Carnegie

Angeliki Bairaktari - JPMorgan

Alexander Koefoed - Nordea

Presentation

Operator

Welcome to the Intrum Q4 2024 Report Presentation. For the first part of the presentation, participants will be in listen-only mode. [Operator Instructions]

Now, I will hand the conference over to CEO Andres Rubio; and CFO Johan Akerblom. Please go ahead.

Andres Rubio

Good morning everyone. This is Andres. Good morning from a very gray day here in Stockholm. Thank you for joining the Q4 2024 and full year 2024 report. As the operator said, I'm here with Johan Akerblom, our CFO.

Jumping right in, let's jump right into Page 3 of the presentation. The fourth quarter was a very solid quarter. We had solid business performance across both of our businesses as well as significant progress on a number of our both internal and external initiatives.

Starting with Servicing on the bottom left. We had the second strongest Servicing quarter in terms of both margin and absolute EBIT in the last five years. We had an EBIT increase both quarter-on-quarter and year-on-year of approximately 26%.

The quarter -- the margin in the fourth quarter was 30%. The year prior equivalent period was 23%. For the year, it was above 19%. Our target was in the 18s and last year it was 16%. So, significant margin improvement and positive momentum combined with organic growth as you can see in the bottom left in the Northern and Middle Europe regions, our largest economic catchment areas offset by what is as we all know a structural decline in the AUM and our business in Southern Europe. More on that later.

On Investing on the bottom right, collections performance for the quarter was 103%, for the year was 101% against active forecast. But just as importantly or even more importantly, it was 110% versus original forecast during the quarter. And during the year, I believe, it was 111% against original forecast. So, we continue to outperform our forecast at the time when we bought these assets....

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