Debt collector Credit Corp lifts FY profit
Debt collection firm Credit Corp has lifted full-year profit nine per cent to $70.3 million despite a slight dip in collections in Australia and New Zealand.
Revenue for the 12 months to June 30 rose eight per cent to $324.3 million, with $189.5 million of that generated from the recovery of consumer debt purchased in Australia and New Zealand.
That was $6.2 million down on 2018's record $195.7 million, but Credit Corp on Monday flagged increased investment in the market for FY20 and tipped profit growth of between seven and 10 per cent.
Credit Corp's core business is buying bad debts off companies before trying to collect it at a profit, but it also has a consumer lending segment - which lifted revenue by 19 per cent to $94.0 million.
It also generated $40.8 million in debt buying revenue from the US, a 70 per cent increase on the previous year.
"The US is on track to fulfil its potential of becoming as large as the Australian/New Zealand debt buying operation in the medium term" chief executive Thomas Beregi said.
Credit Corp will pay a final dividend of 36 cents for a full-year payout of 72 cents, which it said would likely remain flat in FY20.
At 1115 AEST, shares in Credit Corp were 5.6 per cent lower at $24.96.
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