CORRECTION - STRONG GROWTH IN Q1 WITH ALL TIME HIGH GROSS COLLECTION - 66% GROWTH IN CASH EBITDA Y-O-Y, ERC OF NOK 21.4BN, STRONG PIPELINE OF NPL PORTFOLIOS AND SOLID GROWTH CAPACITY2019-05-24
First quarter 2019 * Gross cash collection of NOK 1,248 million (775) - up 61% y-o-y
* Operating profit of NOK 350 million (326) - up 7% y-o-y
* Cash EBITDA of NOK 964 million (581) - up 66% y-o-y
* ERC at end of month NOK 21,434 million (18,116) - up 18% y-o-y
(Comparable numbers for Q1 2018 in brackets)
B2Holding ("B2H") continued the positive operational growth in first quarter 2019 with record high levels in gross cash collection and Cash EBITDA, through well-diversified growth through all regions. The Group posted an all-time high quarterly cash EBITDA of NOK 964 million, an increase of NOK 383 million compared to Q1 2018 (+66%). Total operating revenue increased to NOK 795 million from NOK 646 million in Q1 2018 (+34%) and the operating profit landed at NOK 350 million (+7%).
B2H invested NOK 570 million in new portfolios in first quarter. The portfolios were mainly purchased in Northern Europe (71%), and 98% of the purchases in the quarter were unsecured portfolios. The Group has acquired portfolios for NOK 5.5 billion over the last 12 months (+4%) and grown the total gross ERC to approx. NOK 21.4 billion (+18%). B2H continues to improve operations and cost to collect was down with 3 percentage points from 25% to 22%, with potential for further reduction going forward.
In January, the Group entered a new joint venture structure with DDM Group for the acquisition of a non-performing loan portfolio in Croatia. The transaction is expected to be completed during the second quarter of 2019.
To further support the growth strategy, the Group issued in May 2019 a EUR 200 million senior unsecured bond loan with maturity in 2024 (the new Bond). At the end of the first quarter the Group has NOK 3.1 billion available for investments adjusted for deferred payment for portfolio purchases of NOK 130 million, proceeds from the new Bond and in addition to a strong operating cash flow from collections of purchased loan portfolios.
Based on the current financing of the Group and estimated cash flow in 2019, the Group has a significant investment capacity and is thus well positioned to take advantage of the current market with strong pipeline and attractive returns.
For further information, please see the Q1 2019 presentation and report attached. The documents are also available on the Company's website: http://www.b2holding.no
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.