Intrum Justitia, a large accounts receivable management firm based in Stockholm, Sweden, reported last week financial results for the third quarter of 2011.
Intrum said that net earnings grew 18 percent to $26.5 million in Q3 2011.
Consolidated net revenues for the third quarter of 2011 amounted to $155 million an increase of 8 percent from the same period a year ago. The company also increased its debt buying activity by 150 percent, investing $102.5 million in the quarter for portfolios.
“For Intrum Justitia, 2011 is a good year, and development remained favorable in the third quarter,” said President and CEO Lars Wollung. “Adjusted for currency effects, operating earnings rose by 25 percent and the operating margin is strengthened with 3.5 percentage points compared to last year. The ongoing European debt crisis is tangible in several of the countries in which Intrum Justitia operates, although we have yet to see any decline in recoverability of receivables in our operations.”
Oslo, Norway-based Aktiv Kapital also reported third quarter 2011 results last week. Aktiv said that its operating profit fell 6 percent to $17.1 million.
Revenues also declined 6 percent to $39.8 million in the third quarter of 2011.
Aktiv noted that the declines in revenue and earnings were primarily due to lower portfolio purchasing activity in the preceding quarters.
The company said that it dramatically increased debt buying in the quarter, investing $9 million compared to just $1.5 million in Q3 2010.
“The results for the third quarter demonstrate how Aktiv Kapital is operating efficiently and adjusts costs to revenue. The Group will continue to streamline the organisation and drive operational improvements in order to maximise profitability,” says newly appointed CEO Geir Langfeldt Olsen. “The current macroeconomic climate is driving more debt to the market. We are well positioned with an effective platform and solid balance sheet, and we are strengthening the portfolio investment team to capitalise on the opportunities ahead of us.”