Intrum Justitia Revenues Hit $150 million in Second Quarter

European accounts receivable management giant Intrum Justitia Tuesday reported financial results for the second quarter of 2008 marked by a 19.5 percent increase in net earnings and a 13.2 percent rise in revenues.

Stockholm, Sweden-based Intrum reported net earnings of $18.8 million for the second quarter of 2008, a 19.5 percent increase from the $15.7 million it earned in the second quarter of 2007. Intrum said that net earnings for the first six months of 2008 were $36.8 million compared to the $32.2 million it reported for the first half of 2007.

Revenues at the group increased 13.2 percent in the second quarter to $150 million. For the first half of 2008, revenues were $294.5 million, up from $260 million in the first half of 2007.

When broken down by operating region, Intrum reported that the Netherlands, Belgium & Germany operational unit accounted for the most revenue in the second quarter, with $33.8 million, followed by its home Scandinavian region of Sweden, Norway & Denmark with $30.7 million.

Intrum also reported that it spent $42.1 million on debt purchases in the second quarter of 2008, doubling the $21 million it spent in Q2 2007.

“The positive trend for Purchased Debt continues, which we see as a reflection of the quality of the service line’s management and our ability to spread risks,” commented CEO Michael Wolf in a press release.

The company reiterated a previous announcement that its Norwegian unit had regained its license to collect debt in the country (“Intrum Justitia's Norwegian Subsidiary Regains Collection License,” July 1). The Norwegian Ministry of Justice gave the license back to the unit after it was revoked in November 2007. Intrum had been appealing the decision since December and said that the process of getting reinstated in Norway cost the company $1.4 million, $67,000 of which was spent in the second quarter.

Intrum Justitia is one of Europe’s largest ARM firms with around 3,100 employees in 24 markets.