(Oslo, 2024-11-07)
Third quarter financial highlights:
* Cash collections of NOK 1,326 million (1,497)
- down 11 % y-o-y
*Revenues of NOK 863 million (884)
- down 2 % y-o-y
* Cash EBITDA of NOK 1,012 million (1,160)
- down 13 % y-o-y
* Adj. EBIT of NOK 402 million (389)
- up 3 % y-o-y
*Adj. Net profit of NOK 122 million (84)
- up 46 % y-o-y
(Comparable numbers for Q3 2023 in brackets)
Collections remained strong in the third quarter with an unsecured collection performance of 108% and secured collection performance at 133% compared with latest forecasts. Cash collections and consequently revenues were down compared to last year, driven by lower secured collections as expected. The third quarter last year also included revenues from the Group’s subsidiary in Bulgaria which was divested at the end of Q3 2023.
Cash EBITDA was NOK 1,012 million and adjusted EBIT was NOK 402 million. Adjusted Net profit was NOK 122 million equivalent to adjusted earnings per share of NOK 0.33, up from NOK 84 million and NOK 0.22 in the same quarter last year.
EBIT and Adj. Net profit is up compared to last year, despite lower collections from secured. This is driven by a notable reduction in operating expenses of 7% and lower interest costs. The interest costs continue to trend down, and we expect to see further reductions in the coming quarters. Following the completed refinancing in the quarter the run-rate interest cost is reduced by NOK 275m compared to the end of 2023.
B2 Impact invested NOK 455 million in new portfolios in the third quarter. Of the invested amount 48 per cent were unsecured forward flows and 52 per cent were unsecured one-offs. The Estimated Remaining Collections (ERC) were NOK 23.9 billion including share of portfolios held in JVs and REOs. At the end of the third quarter, the Group had spent and committed investments of NOK 1.4bn for 2024.
B2 Impact has a solid and diversified funding structure to support further growth. The leverage ratio at the end of the third quarter was 1.8x. The healthy capital structure and leveraging ensure liquidity and financial flexibility to deliver on the strategy going forward. The Group holds an EUR 610 million senior secured revolving credit facility (RCF) and two senior unsecured bond loans for a total of EUR 350 million.
“In the third quarter we have completed a refinancing of a substantial part of our outstanding debt including a new bond issue and extension of our Revolving Credit Facility. With the refinancing, we have a blended cost of debt of 6.6 % which is among the lowest in the industry. The trust we have been shown by our banks and bondholders is a result of stable performance and deleveraging over the last five years, where we in the same period have maintained shareholder return through dividends and share buyback programs. The Board has also approved an additional dividend for 2023 of NOK 0.6 per share paid out in the fourth quarter. On the investment side we see increased market activity and a growing pipeline going into the fourth quarter.” said Erik Just Johnsen, CEO of B2 Impact ASA.
Corporate matters
Erik Just Johnsen will step down as CEO of B2 Impact on 1 December. Trond Kristian Andreassen is appointed as new CEO from the same date. With the appointment as new CEO, Trond Kristian Andreassen will step down from the Board of the Company as of 1 December 2024. In addition, Anders Engdahl has elected to step down from the Board on the same date. From 1 December 2024 the Board of the Company will then consists of Harald L. Thorstein (Chairman), Adele Bugge Norman Pran, Jessica Sparrfeldt, Ellen Hanetho and Henrik Wennerholm.
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For further information, please see the Q3 2024 presentation and report attached. The documents are also available on the Company's website: www.b2-impact.com
Definitions of alternative performance measures can be found in the report and presentation.
The results will be presented in an audiocast from 08:30 CEST today through this link:
https://b2-impact.videosync.fi/q3-report-2024/register
Live viewers can submit their written questions for the Q&A in the provided form in the audiocast player.
The audiocast can also be accessed through the following link where questions for the Q&A can be asked live:
https://conference.financialhearings.com/teleconference/?id=5009492
A recorded version of the audiocast will be available on-demand after the live stream is concluded.
For further information, please contact:
Rasmus Hansson
Head of Investor Relations and M&A
Mobile: +47 952 55 842
E-mail: rasmus.hansson@b2-impact.com
or
André Adolfsen
CFO
Mobile: +47 930 19 150
E-mail: andre.adolfsen@b2-impact.com
About B2 Impact ASA
B2 Impact ASA is one of the leading pan-European debt management companies. B2 Impact offers solutions to the challenges created by defaulted loans, and provide liquidity to financial institutions, contributing to a healthier financial system. B2 Impact promote lasting financial improvement through transparent and ethical debt management. The Company was founded in 2011 and employs around 1,430 FTEs. B2 Impact ASA is headquartered in Oslo, Norway and the B2 Impact share is listed on the Oslo Stock Exchange under the ticker "B2I". For further information, visit www.b2-impact.com
