B2Holding, owner of Debt Collection Agency (DCA), reports stable and solid financial results in fourth quarter 2019.
B2Holding had total operating revenues of EUR 78.8 million (NOK 819 million) in Q4 2019, an increase by 9% compared to the same quarter last year. Gross cash collection increased by 11% to EUR 125 million (NOK 1.295 million).
South East Europe (Bulgaria, Romania, Greece, Cyprus) achieved the highest growth in total revenues in Q4 2019. Total revenue in SEE increased by 73% to EUR 11 million (NOR 115 million ). Total revenue in Poland was up by 17% reaching almost EUR 18 million (NOR 186 million). Total revenue in Northern Europe was up by 9%.
Cash EBITDA was EUR 93 million (NOK 963 million), an increase of 16% compared to the 2018 Q4. Operating profit (EBIT) was reduced by 11% to EUR 28 million (NOK 291 million).
B2Holding invested ЕUR 54.4 million (NOK 566 million) in new portfolios in fourth quarter. The portfolios were mainly purchased in Northern Europe, and 98 per cent of the purchases in the quarter were unsecured portfolios. B2Holding has acquired portfolios totalling EUR 385 million (NOK 4.0 billion) in 2019, including the Group’s share of portfolios acquired and held in joint ventures. The group registered an increasing share of forward flow transactions in its debt purchases. The share of forward flows reaches 50-70% of the total portfolio, managed by the company in the mature markets.
“In fourth quarter 2019 we continued implementation of the new strategy. Within secured portfolios our focus has been on improving operations by adding more specialized resources and implement new recovery strategies. Our unsecured portfolios continued to perform well, and we see a positive trend in main markets. Leaving behind a year with some challenges in the Group, I am confident that the new strategic direction will improve our profitability, strengthen our platforms and deliver continuing shareholder value going forward,” said Erik J. Johnsen, CEO of B2Holding.
At the end of the fourth quarter, B2Holding has over EUR 200 million (NOK 2.1 billion) available for investments, in addition to a strong operating cash flow from collections of purchased loan portfolios.Going forward, B2Holding sees a good market for portfolio acquisition. The Group continue to evaluate more co-investments in existing markets, which is expected to further increase revenue.