13 February 2019, 07:30 CET
Profitable growth and step change in portfolio size
Axactor more than doubled gross revenue to EUR 75 million in the fourth quarter 2018 (EUR 34m), with year-on-year growth in all business segments. EBITDA more than tripled to EUR 20 million (EUR 6m), illustrating the benefits of increasing volumes, improving efficiency and high operational leverage. Cash EBITDA amounted to EUR 45 million (EUR13m).
“Axactor has developed from a start-up company to one of the top-10 European debt management companies over the past three years and continued to show strong revenue growth and margin improvement in the fourth quarter 2018. High portfolio investments, new forward flow agreements, expansion of the 3PC business, and rollout of ARM services in new markets point towards continued profitable growth also in 2019,” says CEO Endre Rangnes in Axactor.
Q4 2018 was a very active quarter for Axactor, with several large portfolio investments, new forward flow agreements, new 3PC contracts, and the entry into Finland with the acquisition of the debt collector SPT Group Ltd. and the take-over of Bank Norwegian’s Finnish portfolio.
Investments in new NPL portfolios and REO assets amounted to EUR 334 million in the quarter, which is by far the highest investment level in a single quarter. NPL acquisitions accounted for EUR 329 million of the investments, distributed across all Axactor’s geographical markets. The company also signed several new forward flow agreements in the quarter, including a large contract in Sweden starting in March 2019.
Total ECR for the NPL portfolio stood at EUR 1,388 million at the end of the year, of which EUR 183 million is expected to be collected in 2019.
REO investments were modest at EUR 6 million in the quarter. ECR for the REO portfolio was EUR 274 million at the end of 2018, of which EUR 161 million is expected to be realized in 2019.
The third-party collection (3PC) segment also saw the profitable growth continue. Axactor Spain renewed three contracts and added two more during the quarter, and now has nine of the top-10 Spanish banks as customers. Accounts receivables management (ARM) reported only modest year-on-year growth in the quarter. The product will be rolled-out in Finland, German and Italy over the coming quarters, which is expected to increase revenue going forward.
Axactor plans for a total investment level of EUR 350-400 million in 2019, which will be funded by running cash flow and existing funding sources. The capex commitment for already signed forward flow agreements for 2019 was estimated to EUR 258 million per the end of 2018.
For additional information, please contact:
Endre Rangnes, CEO Axactor
Mobile phone: +47 482 21 111
Johnny Tsolis, CFO Axactor
Mobile phone: +47 913 35 461