B2Holding ASA: Second quarter and half year 2021 results2021-08-25
Second quarter financial highlights: * Gross collection of NOK 1,407 million (1,277) - up 10 % y-o-y
* EBIT of NOK 341 million (245) - up 39 % y-o-y
* Cash EBITDA of NOK 977 million (927) - up 5 % y-o-y
* Leverage ratio of 2.52x (3.22x) - down 0.70x y-o-y
(Comparable numbers for Q2 2020 in brackets)
B2Holding had net revenues of NOK 756 million in the second quarter, up 10 per cent from NOK 687 million the same quarter last year.
Gross collection including SPVs and joint ventures was up by 10 per cent to NOK 1,407 million, and cost to collect was down 2 percentage points quarter on quarter to 20 per cent in Q2 2021. Collections and recoveries continue to exceed expectations, with REOs again sold at a sizable premium.
Cash EBITDA was NOK 977 million, an increase of 5 per cent compared to the second quarter 2020, while operating profit (EBIT) was NOK 341 million, up 39 % compared to NOK 245 million in Q2 2020.
Profit after tax was NOK 162 million, equivalent to earnings per share of NOK 0.39, compared to NOK 34 million and NOK 0.08 per share in the second quarter 2020.
B2Holding invested NOK 220 million in new portfolios in second quarter. All investments in the quarter were unsecured portfolios, of which 50 % were forward flow transactions. The total gross ERC was NOK 20.4 billion at end of quarter.
B2Holding has a solid funding base to support future growth. B2Holding continued to strengthen its liquidity reserve in the second quarter and had EUR 407 million in liquidity reserves at the end of the quarter. In addition to bank financing, the Group has four listed senior unsecured bond loans for a total of EUR 775m. At the end of the second quarter of 2021, a nominal value of EUR 91 million was held as treasury bonds, of which EUR 64 million was held in Bond 2 maturing in October 2021.
With the cost saving initiatives carried out throughout the pandemic, the Group has reached a lower cost level overall. With some variations expected quarter on quarter depending on the activity level, the lower cost level is expected to be sustainable going forward. The group also sees a lower cost of funding going forward.
Transaction activity in the industry remained low in the second quarter, but the Group observes encouraging signs of a more active market in the second half of 2021 and into 2022.
"The strong performance we have seen in previous quarters continued in the second quarter, with both unsecured collections and secured recoveries in line with expectations. In combination with lower costs, the second quarter delivered strong cash flow and solid results. Consequently, our balance sheet is even further strengthened from the first quarter, and we are well positioned for what we expect will be a more active NPL market towards the end of 2021 and going into 2022." said Erik J. Johnsen, CEO of B2Holding ASA.
For further information, please see the Q2 2021 presentation and report attached. The documents are also available on the Company's website: www.b2holding.no
Definitions of alternative performance measures can be found in the report and presentation.
The results will be presented in a webcast today, Wednesday 25 August at 08:30 CEST. The webcast presentation is available through this link: https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20210825_1
Live webcast viewers who would like to ask questions at the end of the presentation must submit their written questions in the provided form in the webcast. A recorded version of the webcast will be available on-demand after the live stream is concluded.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
For further information, please contact:
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About B2Holding Group B2Holding ASA is a Nordic based debt solutions provider with platforms in over 20 European countries. B2Holding has experienced significant growth since its inception in 2011 and has established itself as one of the leading European debt purchasers and a solution-oriented partner within the debt servicing industry. B2Holding employs approximately 2,300 people. The head office is in Oslo, Norway and the B2Holding share is listed on the Oslo Stock Exchange under ticker "B2H".