STOCKHOLM – Sweden’s Intrum reported a first-quarter operating profit on Friday that fell 14% from a year earlier, but said business activity was increasing across its markets.
Europe’s biggest debt collector posted a quarterly operating profit of 1.32 billion Swedish crowns ($134.17 million), while portfolio investments rose 3% to 1.78 billion crowns.
Intrum said business activity across all its segments and markets was high and increasing, and flagged that the conflict in Ukraine may have an indirect positive effect on the group.
“Current macro challenges (are) expected to further drive demand for Intrum services,” the company said, noting that the events in Ukraine and lingering effects of the pandemic on supply chains meant the outlook for the European economy had deteriorated and interest rates risen.
“As consumer affordability is being eroded, combined with increased credit utilisation, we see our clients preparing for increased late payment volumes,” Intrum said.
($1 = 9.8386 Swedish crowns)