Axactor more than doubled gross revenue to EUR 75 million in the fourth quarter
2018 (EUR 34m), with year-on-year growth in all business segments. EBITDA more
than tripled to EUR 20 million (EUR 6m), illustrating the benefits of increasing
volumes, improving efficiency and high operational leverage. Cash EBITDA
amounted to EUR 45 million (EUR13m).

“Axactor has developed from a start-up company to one of the top-10 European
debt management companies over the past three years and continued to show strong
revenue growth and margin improvement in the fourth quarter 2018. High portfolio
investments, new forward flow agreements, expansion of the 3PC business, and
rollout of ARM services in new markets point towards continued profitable growth
also in 2019,” says CEO Endre Rangnes in Axactor.

Q4 2018 was a very active quarter for Axactor, with several large portfolio
investments, new forward flow agreements, new 3PC contracts, and the entry into
Finland with the acquisition of the debt collector SPT Group Ltd. and the
take-over of Bank Norwegian’s Finnish portfolio.

Investments in new NPL portfolios and REO assets amounted to EUR 334 million in
the quarter, which is by far the highest investment level in a single quarter.
NPL acquisitions accounted for EUR 329 million of the investments, distributed
across all Axactor’s geographical markets. The company also signed several new
forward flow agreements in the quarter, including a large contract in Sweden
starting in March 2019.

Total ECR for the NPL portfolio stood at EUR 1,388 million at the end of the
year, of which EUR 183 million is expected to be collected in 2019. 

REO investments were modest at EUR 6 million in the quarter. ECR for the REO
portfolio was EUR 274 million at the end of 2018, of which EUR 161 million is
expected to be realized in 2019. 

The third-party collection (3PC) segment also saw the profitable growth
continue. Axactor Spain renewed three contracts and added two more during the
quarter, and now has nine of the top-10 Spanish banks as customers. Accounts
receivables management (ARM) reported only modest year-on-year growth in the
quarter. The product will be rolled-out in Finland, German and Italy over the
coming quarters, which is expected to increase revenue going forward.

Axactor plans for a total investment level of EUR 350-400 million in 2019, which
will be funded by running cash flow and existing funding sources. The capex
commitment for already signed forward flow agreements for 2019 was estimated to
EUR 258 million per the end of 2018. 

For additional information, please contact: 
Endre Rangnes, CEO Axactor 
Mobile phone: +47 482 21 111 
Email: endre.rangnes@axactor.com
 
or 

Johnny Tsolis, CFO Axactor 
Mobile phone: +47 913 35 461 
Email: johnny.tsolis@axactor.com 
About Axactor, www.axactor.com:  

Axactor Group specializes in both Debt Collection and Debt Purchasing across
several countries and currently counts approximately 1000 employees. The company
has a Nordic base and an ambitious Pan-European growth strategy, with operations
in Norway, Sweden, Finland, Italy, Germany, and Spain. Targeting a EUR 1,500
billion market for non-performing loans (NPL) in Europe, Axactor sees
significant growth opportunities and future expansion.