In This Article:
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Net Profit: PLN603 million, a 14% increase year-on-year.
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Cash EBITDA: Record high with an 11% increase.
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Investment in New Portfolios: PLN900 million, targeting PLN2.5 billion for the year.
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Earnings Per Share (EPS): 14% growth.
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Dividend: PLN18 per share paid out in Q2.
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Return on Equity: 26%, one of the highest in the industry.
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Operating Expenses (OpEx): 20% growth year-on-year.
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Salaries: 10% growth, slightly below budget.
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Market Share in Poland: 35%-40% in unsecured retail debt.
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Market Share in Romania: 15% for the first six months.
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Market Share in Italy: 35% in consumer unsecured space.
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Spanish Market Share: 31% in consumer unsecured retail.
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Cash Loan Businesses: Modest increase in profitability for Wonga and Novum.
Release Date: August 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Kruk SA (STU:83I) reported the best six months in its history with a net profit of PLN603 million, a 14% increase year-on-year.
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The company achieved a record high cash EBITDA with an 11% increase in recoveries, significantly beating accounting forecasts.
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EPS grew by 14%, and the company paid out a dividend of PLN18 per share, maintaining a high return on equity at 26%.
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Kruk SA (STU:83I) continues to expand internationally, with over 60% of investments now outside Poland.
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The company is investing in technology to enhance efficiency and customer interaction, which is expected to drive growth over the next four years.
Negative Points
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Investment in new portfolios decreased to PLN900 million, less than 50% of the PLN2.5 billion target for the year.
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Operating expenses grew by 20% year-on-year, driven by increased legal and court fees.
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The Spanish market underperformed, with a significant negative revaluation and increased legal fees impacting EBITDA.
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The company faces a competitive market environment, requiring hard work to achieve good IRRs.
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Potential future tax implications from the OECD's Pillar 2 regulation could affect the company's effective tax rate.
Q & A Highlights
Q: Do you see negative trends in recoveries, especially after July and August? A: Overall, no. We see positive trends in Poland, Romania, and Italy continuing. We are still somewhat below the operating plan in Spain, but this was expected after the review. - Michal Zasepa, CFO
Q: How do you see your competitive position considering difficulties faced by peers? A: We hold a strong competitive position, likely number one in market share across four countries, with shares between 30% and 50%. Despite increased competition, we maintain good IRRs. - Michal Zasepa, CFO