Kredinor AS: Results for the Second Quarter of 2024

Oslo, 5 August 2024 – Kredinor AS today published its quarterly report for the second quarter of 2024. The positive trend from the first quarter continued, with improvements across all areas. Throughout the period, the company has focused on further strengthening its core business to return to solid profitability and stable operations.

Rolf Eek-Johansen, CEO in Kredinor

“This work will continue into the third quarter, in close cooperation with the Board. We now have good control over costs and are seeing solid revenue growth, but there is still some way to go before we are fully positioned for the future,” says Kredinor CEO Rolf Eek-Johansen, adding:

“Nevertheless, it is encouraging to see the first quarter since the 2022 merger with a positive bottom line.”

Key figures for the second quarter:

One of the drivers behind the improved revenue performance is the continued strength of the key indicator, collection performance. It stood at 106.2% in the second quarter of 2024, compared with 96.3% in Q2 2023 (105.1% in Q1 2024). Portfolios were written up by NOK 19.1 million, and Kredinor is also seeing growth in the CMS business area.

  • Total revenue of NOK 406.5 million (NOK 335.2 million in Q2 2023)
  • EBITDA of NOK 128.6 million (NOK 60.7 million in Q2 2023)
  • Cash EBITDA of NOK 318.8 million (NOK 353 million in Q2 2023)
  • EBT of NOK 1.7 million (NOK -54.1 million in Q2 2023)

The ownership structure of Kredinor was finalised in the second quarter, with SpareBank 1 Gruppen holding 68.64% and Kredinorstiftelsen 31.36%. This also means that all obligations under the subordinated loan have been fulfilled and the loan has been terminated.

Investments

On 11 April 2024, at the very start of the second quarter, Kredinor signed its first capital-light agreement, thereby initiating the implementation of the Group’s capital-light strategy. The agreement, concerning the securitisation of a non-performing loan (NPL) portfolio in Sweden, has a gross volume of approximately SEK 700 million.

“During this quarter, we have further strengthened our investment capacity and are now in a position to invest in more portfolios,” says Rolf Eek-Johansen.

“This also means that we have a satisfactory buffer relative to our loan covenants,” adds Bjørn Ove Ottosen, CFO of Kredinor.

Assessment of Kan AS

In line with the company’s strategy and renewed focus on its core business, Kredinor is considering structural changes to its subsidiary Kan AS. Kan is a digital financial advisory service purchased by companies to be offered to their employees.

“We have developed a strong service that already helps many individuals gain control of their finances. However, as it extends beyond our defined core business, it is appropriate to explore a broader perspective to ensure its optimal development. This work will continue in the third quarter,” says Eek-Johansen.

An important societal role

Kredinor continues its efforts in digitalisation, cost reduction and a comprehensive review of the company in order to operate more efficiently in today’s market.

“In this context, it is important for us to highlight the important societal role played by Kredinor and other full-service debt collection companies. We contribute to strong liquidity in the business sector and thereby help safeguard jobs, and we also support financial stability through our portfolio investments, to name a few examples,” says CEO Rolf Eek-Johansen.

“Together with organisations such as our industry association, Finance Norway, we will continue to engage in dialogue with policymakers and other decision-makers to raise awareness of this.”