Debt collector Intrum targets stable core profit after first-quarter write down

Intrum, Europe's biggest debt collector, reported on a 66 percent drop in first-quarter profit hit by a writedown and weaker credit management in southern Europe but a mostly stable performance so far this quarter.

The Swedish group's operating profit tumbled to 459 million crowns ($46.8 million) from 1.35 billion a year earlier partly due to a 636 million writedown on holdings at its Portfolio Investments division.

The division buys portfolios of overdue debts and then collects them. Intrum said the revaluation reflected expectations of lower collections in 2020 due to the impact of Covid-19.

Intrum's shares were down 2 percent in early trade and are off 51 percent year to date.

Its credit management operations in France, Greece, Italy, Portugal and Spain saw sales and margins fall in March reflecting government efforts to stem the pandemic that caused...

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