Kredinor AS: Results for the Third Quarter of 2023

Oslo, 8 November 2023 – Kredinor AS today published its interim report for the period ending 30 September 2023. The quarter was weaker than expected for Kredinor, primarily due to macroeconomic conditions. Work to implement the company’s new strategy continues at full pace, with solid progress in the post-merger synergy programme.

man reading papers

As a result of weaker-than-expected collection performance, Kredinor reduced the carrying value of its purchased portfolios by NOK 180 million in the third quarter. The write-down represents a total of 2.84% of the current portfolio value. In addition, Kredinor recognised a goodwill impairment of NOK 62 million related to portfolio investments.

“These portfolios largely date from before 2020, and more than half originate from loans issued by consumer finance banks prior to the introduction of the public debt register,” says Klaus-Anders Nysteen, CEO of Kredinor.

There is a risk that Kredinor may breach certain covenants related to its revolving credit facility (RCF) in the next quarter. As a result, the company is engaged in constructive dialogue with the RCF banks to amend or obtain waivers for existing loan terms, if necessary.

Financial key figures for Q3:

  • Cash revenue of NOK 561 million (NOK 628 million in Q2 2023)
  • Cash EBITDA of NOK 279 million (NOK 353 million in Q2 2023)
  • Adjusted EBIT of NOK 82 million (NOK 85 million in Q2 2023)
  • Profit before tax of NOK -274 million (NOK -54 million in Q2 2023)

Figures in parentheses refer to the previous quarter, as comparable figures from Q3 2022 (prior to the merger) are not available.

“Collection performance was 90% in the third quarter and 93% for the period January to September. When our customers face financial difficulties, it is naturally more challenging for them to repay outstanding balances. Nevertheless, we remain committed to supporting our customers through difficult times,” says Nysteen.

Strategy and synergies

This autumn, Kredinor reduced the number of core systems from three to two following the merger with Modhi in 2022, and work continues to consolidate all collections into a single core system.

“As a result of this and other ongoing synergy initiatives, we expect higher efficiency and improved collection performance going forward,” says CEO Klaus-Anders Nysteen.

“Our new financial advisory service, Kan, has now moved from pilot to a fully launched product. We are very pleased with the progress and the feedback from our customers, and with our contribution to improving their financial wellbeing,” says Nysteen.

During the third quarter, Kredinor completed the acquisition of the Danish company Intellecto A/S. This enables Kredinor to serve customers and clients across all Nordic countries.