Intrum Justitia Reports Solid Quarter; Debt Purchasing Down

European ARM heavyweight Intrum Justitia Thursday reported an increase in earnings for the third quarter on stronger revenues. The Swedish company, however, reported lower debt purchasing in the period.

For the quarter, Stockholm-based Intrum reported revenues of $125.2 million, a 9.2 percent increase over revenue reported for the third quarter of 2006. Net earnings for the quarter came in at $18.2 million, up 11.3 percent from the same quarter a year ago.

Also in the third quarter, Intrum reported spending $22.6 million on debt portfolio purchasing activity, down sharply from the $43 million it reported spending on portfolios in the third quarter of 2006.

For the first nine months of 2007, Intrum has counted revenues of $368.8 million, an increase of 9.1 percent from revenues reported in the first nine months of 2006.

“Our achievements in the third quarter, with organic growth of 10.6 percent and improved profitability, including a 1.5 percent increase in the operating margin, excluding portfolio revaluations, provide further support for our financial objectives,” commented CEO Michael Wolf in an earnings release. “We have had a good influx of new clients, and in important countries like Sweden and Finland efforts to boost sales from existing clients are producing results. For the second consecutive quarter the Poland, Czech Republic, Slovakia & Hungary region has significantly increased both revenues and earnings. The measures in England have not yet had a full impact on earnings, although we have succeeded in attracting new clients.”

In September of last year, Intrum announced a plan to restructure its field collections operations in England by outsourcing that function to a local company (“Intrum Justitia Restructures its English Field Operations,” 9/25/06).