Q3 2025 Intrum AB Earnings Call Transcript
Key Points
- Intrum AB (ITJTY) reported a 30% year-on-year increase in adjusted EBIT, marking the third consecutive quarter of net profits.
- The company's leverage ratio is improving, with investing volumes increasing compared to earlier quarters in 2025.
- The servicing business achieved organic growth for the first time since Q3 2022, with growth in 10 out of 16 markets.
- The adjusted EBIT margin for the servicing side reached 25% on a rolling 12-month basis, indicating improved profitability.
- Intrum AB (ITJTY) continues to extract value from its portfolio, with a performance index above 100% and collections slightly above forecast.
- The quarter was marked by significant one-offs, including write-downs of impairments and goodwill, leading to a reported debit of almost 600 million.
- Income decreased by 3% compared to the previous year, with more than half of the decline attributed to foreign exchange effects.
- The company faced a goodwill impairment related to its operations in Spain due to more negative development than anticipated.
- Cash EBITDA from investing declined due to a smaller book, despite a slight improvement in collection performance.
- The leverage ratio, restated to a more conservative approach, is higher than previous definitions, indicating ongoing concerns about debt levels.
Good morning, everyone. Thank you for listening. It's great to have you back, for another quarterly earnings call. Today, we have a new setup. I am obviously in the new position and I also want to sort of say hello to Masih who's been with us now for, what is it, eight weeks, roughly, almost, and yeah, we will go through the Q3 results in normal order. We will take you through the presentation and then we'll open up for Q&A at the end.
If we start with the quarterly, I think the quarter as such, it is a bit messy when you start looking at it, but a few things to highlight. I mean, on the underlying, we have a higher servicing income. The online business is in general performing well.
The adjusted EBIT has been increasing 30% year on year, and we continue to report net profits. This is the third quarter in a row.
And the leverage ratio is going in the right direction and the investing volumes are increasing if we compare it to Q1 and Q2 early this year.
On the servicing side, we have now reached the 25
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