In This Article:
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Operating Expenses: Down 7% compared to last year.
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Investment: NOK1.4 billion invested and committed by the end of Q3; target between NOK2.5 billion to NOK3 billion for 2024.
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Refinancing Impact: Anticipated reduction in financial costs by NOK275 million annually, or about NOK70 million quarterly.
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Dividend: Increased to NOK1.3 per share, providing a direct return of around 15% annually.
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Earnings Per Share (EPS): NOK1.3 year-to-date, aligning with the full fiscal year 2023.
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Cash Collection: NOK1.3 billion, slightly down from last year.
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Cash EBITDA: NOK1 billion for Q3.
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Adjusted Net Profit: NOK122 million.
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Personnel Costs: Down 9% compared to the same quarter last year.
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Net Profit Growth: 72% underlying increase compared to last year.
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Unsecured Collection Performance: 108% of the latest forecast.
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Secured Cash Collections: NOK243 million, including NOK94 million of REO sales.
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FTE Reduction: Down 15% year-over-year.
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Interest Cost Reduction: 30% reduction in run rate interest cost.
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Portfolio Investments: NOK455 million for Q3, up NOK27 million compared to last year.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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B2 Impact ASA (STU:B28) reported a strong performance in unsecured collections, achieving 108% of the latest forecast.
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Operating expenses decreased by 7% compared to the previous year, reflecting successful cost reduction initiatives.
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The company completed a refinancing plan that significantly reduced the cost of debt, with an expected annual savings of NOK275 million.
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B2 Impact ASA increased its dividend for 2023 to NOK1.3 per share, providing a direct return of around 15% annually.
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The company maintains a strong investment pipeline and expects to meet its investment target of NOK2.5 billion to NOK3 billion for 2024.
Negative Points
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Cash collections were slightly down from the previous year, primarily due to lower REO sales and secured collections.
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The company has not invested in secured portfolios for several years, leading to a decline in secured collections.
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Interest costs, although reduced, still impact the bottom line, with further reductions expected in future quarters.
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The number of full-time employees (FTEs) has decreased significantly, which may impact operational capacity if not managed carefully.
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There is increased competition in the market, with some external funds entering the sector, potentially affecting investment opportunities.
Q & A Highlights
Q: Can you clarify if the Q4 interest cost below NOK200 million includes amortization fees, and what is the new run rate for these fees? A: The interest cost and commitment fees mentioned do not include amortization fees. The amortization fees are expected to align with previous periods. - Andre Adolfsen, CFO