Axactor reports Q3 financials

Axactor’s financials for the third quarter 2020 saw a normalization in both revenue and earnings compared to the second quarter 2020. After the Covid-19 induced lockdowns across Europe earlier this year, early signs of recovery were visible towards the end of the second quarter. The positive trend has continued in the third quarter within all business segments.

The REO segment did particularly well, with both volume and prices developing above expectations. Due to the prompt recovery, a net amount of EUR 5.1 million in impairment accruals was released.

"The positive development we saw towards the end of the second quarter has continued through the third quarter. All our employees have returned to work, and although around 400 were still working from home at the end of the quarter, our superior IT platform enables us to deliver our services more or less as normal. We note that authorities around Europe are better equipped and prepared for a potential resurgence of the Covid-19 virus than they were in March. We thus expect bailiffs and courts to remain functional," says CEO Johnny Tsolis.

EBITDA came in at EUR 30.3 million, resulting in an EBITDA margin of 49%. Excluding the net reversal of REO impairment accruals, the EBITDA margin would be 41%, a record high for Axactor. Gross revenue in the quarter was EUR 83.3 million (87.3), up from EUR 70.8 million in the second quarter, while total income amounted to EUR 62.3 million (64.3). Cash EBITDA was EUR 56.2 million (59.7).

Axactor continued to invest in ongoing forward flow contracts in the third quarter, although no new contracts were signed. Total investments in NPL portfolios ended at EUR 34.6 million (85.1). The company reiterates its guiding on NPL investments north of EUR 200 million for 2020, which will provide volume growth going into 2021.

"We continue to reduce risk by holding back on new investments. Combined with our strong cash generation, the liquidity position of the company is satisfactory and expected to improve further over the coming quarters. This allows for future investments, although our near-term focus remains on deleveraging," says CEO Johnny Tsolis.

Axactor’s CEO Johnny Tsolis will present the financial results for the third quarter 2020 in a webcast at 10:00 CET today. The webcast will be held in English, and is available at https://streams.eventcdn.net/axactor/2020q3

Participants dial-in numbers:
DK: +45 7872 3250 (Direct)
NO: +47 2396 3688 (Direct)
SE: +46 850 558 358 (Direct)
UK: +44 333 300 9264 (Direct)
US: +1 833 5268 395 (Direct)

Attachments:

Q3 Report 2020 (pdf)
Q3 Presentation 2020 (pdf)

For additional information, please contact:
Johnny Tsolis
Chief Executive Officer
Mobile phone: +47 913 35 461
Email: johnny.tsolis@axactor.com

Kyrre Svae
Chief of Strategy & Investor Relations
Mobile phone: +47 478 39 405
Email: kyrre.svae@axactor.com

About Axactor
Axactor Group is a next-generation debt management company operating in Norway, Sweden, Finland, Germany, Spain and Italy with an ambitious European growth strategy. Axactor acquires and collects on own portfolios of non-performing loans and also provides debt collection and accounts receivable management for third parties. The debt collection market is estimated to about 1,000 billion euros across Europe, providing significant opportunities for future expansion. The company has approximately 1150 employees.