Transcom Reports Strong Quarter, Eyes North America and Collections

European collection firm and call center operator Transcom Worldwide reported earnings for the third quarter Tuesday, marked by a jump in revenue on North American and European ARM acquisitions.

For the three months ended September 30, Luxembourg-based Transcom reported revenues – called net sales by the company – of $206 million, up more than 13 percent from the $181.7 million reported for the same period a year ago. Net income for the quarter was nearly $9.2 million, an increase of 3 percent from net income reported a year ago.

Transcom gave hints in the earnings release that the company is transitioning into a North American and collections-focused call center provider. “Looking ahead to 2008, Transcom is evolving into a dramatically different company, both in terms of our client mix and our global footprint,” said Transcom CEO Keith Russell.

Part of the evolution is in two acquisitions completed by Transcom in the third quarter. In late August, the company announced that it had acquired Canadian call center operator NuComm (“European CRM and ARM Firm Acquires Canadian Call Center Giant,” 8/29). Ontario-based NuComm employs 3,000 people in 10 call centers in Canada, two in the U.S., and two in the Philippines. NuComm is actively involved in debt collection following its 2005 acquisition of Canadian collection agency Federal Credit & Consulting.

Russell said in this week’s earnings release of the NuComm acquisition, “This expanded footprint will assist us with the development of global business partnerships as well as the opportunity to expand our collections and home-working businesses in the North American market.”

A week after purchasing NuComm, Transcom announced the acquisition of IS Inkasso, the largest collection agency in Austria (“Transcom Acquires Austria’s Largest Collection Agency,” 9/4).

Transcom attributed much of its third quarter success to the rapid expansion of its collections business and its presence in the North American market. Russell commented, “…our collections business continued to develop at a faster rate than CRM activity in the quarter,” with further management commentary indicating that debt collection is Transcom’s “fastest growing line of business.”

Russell indicated that Transcom will continue to expand its collection business, both in Europe and in global markets, through organic growth and acquisitions.

Transcom employs more than 31,000 people at 55 call centers around the world. The company’s stock is traded on the Stockholm-based Nordic Exchange.