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Strong strategic deliveries give double digit growth

Oslo, 4 May 2017 | The leading European full-service credit management services provider, Lindorff continued its strong performance in Q1 2017. Net revenue in the quarter was EUR 179m, an increase of 33 percent compared to the same quarter last year and EBITDA excluding non-recurring items was up 38 percent.
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Oslo, 4 May 2017 | The leading European full-service credit management services provider, Lindorff continued its strong performance in Q1 2017. Net revenue in the quarter was EUR 179m, an increase of 33 percent compared to the same quarter last year and EBITDA excluding non-recurring items was up 38 percent.

The growth this quarter was driven mainly by the Debt Collection business following the acquisition of Aktua, the Spanish market leader in Secured Non Performing Loan Servicing and Real Estate Servicing acquired by Lindorff in 2016, as well as 9 percent organic growth from external servicing revenue in the Third Party Collection (3PC) business.

Lindorff has two main business lines, Debt Purchasing and Debt Collection. Investments in Debt Purchasing amounted to EUR 23m in Q1 2017 compared to EUR 24m in Q1 2016. In addition to its one-off investments, the company signed forward-flow deals in the quarter and expect full year forward flow capex in excess of EUR 100m, which is double the amount achieved over the last twelve months. Lindorff continued to deliver solid collection performance on its purchased portfolios at 103 percent of forecast in Q1 and 105 percent over the last twelve months.

One of Lindorff’s key priorities in Debt Collection is to extract more value out of existing volume as well as increasing its market share. In the quarter these efforts resulted in 9 percent organic growth in external 3PC revenue.

“This is a great start to a new year. Our focus on expanding our footprint with Financial Institutions and further strengthening our appeal to cross-border clients is paying off. There is diversified growth both in terms of business lines, geographies and industry verticals. We are particularly happy about growing in our most important client segment and strengthening our position as the preferred partner for Financial Institutions (FI) in Europe,” says Klaus-Anders Nysteen, CEO Lindorff. “These efforts combined with the ambition to lead the industry in digital transformation is serving us well as we deliver consistent double-digit growth in revenues and earnings, quarter on quarter,” concluded Nysteen.

Subsequent to the quarter, Lindorff increased its foothold in Italy through a small bolt-on acquisition in April. The acquisition provides Lindorff with additional Debt Collection capabilities and is another step forward for the company in establishing a solid platform for both servicing and Debt Purchasing capabilities in the Italian market.

Amidst all this activity in the quarter, Lindorff continued its planning for the combination with Intrum Justitia. A competition filing was submitted to the European Commission in April and the aim is to complete the transaction in the second quarter of 2017 in line with what has been previously communicated.

For more information and the complete Q1 financial report and presentation, please see our investor relations home page: investor.lindorff.com.