Axactor had an EBITDA of 26 million euros in the first quarter of 2024, compared to 30 million euros in the same period the previous year. EBITDA of 33 million euros was expected in advance, according to estimates from the company itself.
Gross revenues ended at 79 million euros in the quarter, down from 83 last year, against an expected 89 million euros.
Key figures in the first quarter (change from the same period last year in brackets):
- Gross income of 79 million euros (down 4%)
- Total income of 57 million euros (down 9%)
- EBITDA of 26 million euros (down 14%)
- Cash EBITDA of 49 million euros (down 5%)
- Annual return on equity 1% (down 6 percentage points)
- NPL investments of EUR 11 million (down 67%)
– The first quarter was weak. Low investment in 2023 and so far in 2024, a challenging collection environment for debt, as well as increased interest rates put pressure on the financial result, says Johnny Tsolis, CEO of Axactor.
The market prices for NPL portfolios have adjusted down towards levels that Axactor considers reasonable, given the increased borrowing costs, writes TDN Direkt. The most recent deals that have been made are at significantly higher gross IRR levels compared to previous years. This has led to a gradual increase in the average gross IRR for the company’s portfolio on a quarterly basis, to 18 per cent at the end of the first quarter of 2024.
The estimated replacement investment (replacement capex) for 2024 is around 106 million euros, and the previously communicated target of 100-200 million euros in investments should thus ensure a relatively stable and growing book value throughout the year, according to the report.
