KRUK reports strong start into the year

KRUK has published Q1 2019 financial results:

• In Q1 2019, the Group earned PLN 97.9m in net profit, one of the highest bottom-line figures on record, representing 30% of the full-year net profit reported for 2018.
• Recoveries from purchased debt portfolios reached PLN 426.7m, up 18% year on year, representing 27% of the full-year figure for 2018.
• KRUK invested PLN 179.5m in 37 debt portfolios with a total nominal value of PLN 1.4bn, up 43% on Q1 2018. Investments for the second quarter in a row were made assuming growing expected returns.
• KRUK maintained a conservative approach to debt, with the net debt to cash EBITDA ratio of 2.3x at the end of Q1 2019.
• The Management Board decided to recommend to the General Meeting the payment of a dividend of PLN 5 per share from the Company’s profit for 2018.
• After the end of the first quarter of 2019, KRUK obtained clearance from the competition and consumer protection authority UOKiK to acquire all shares in wonga.pl sp. z o.o., the Polish operations of Wonga’s international business.

 “We have had a good start into 2019, which may prove a breakthrough year on the Group’s growth path. Owing to strong recoveries, of PLN 427m, and cost discipline we delivered a net profit of PLN 98m. We invested a total of PLN 179m, focusing mainly on the Romanian and Polish markets, which accounted for nearly 80% of the total. Given strong recoveries and favourable economic conditions in the two markets, we can comfortably work to improve efficiency in Italy and Spain. There is progress, and we believe that the solutions we have developed will enable us to step up our debt buying activity in the future in those countries as well,” said Piotr Krupa, KRUK S.A. CEO.