Debt buyer PRA Group on Monday reported third quarter net income increased 8% to $51.2 million on cash collections of $372.7 million, a 28% jump. Revenue in the quarter rose 21% compared to a year ago to $239 million.
The results reflect the acquisition of Norway-based Aktiv Kapital. The $880 million
PRA Group's third quarter cash collections included collections from finance receivables sources such as: call centers, external legal collections, internal legal collections and insolvency collections.
Third quarter revenue also included income from PRA Group's fee-based businesses of $12.9 million, compared to $26.3 million in the year-ago quarter. The decline mostly was attributed to sizable fee income from the Claims Compensation Bureau business during the year-ago third quarter.
PRA Group, based in Norfolk, Va., invested $891.4 million in new finance receivables from North American and European creditors in the third quarter compared to $141.9 million in the year-ago quarter. The investment include $728 million in finance receivables from the Aktiv Kapital acquisition.
"PRA Group now offers global clients a compliant partner focused on a positive customer experience with the financial capacity to offer maximum value, purchasing consistency and post-sale support," said Steve Fredrickson, chairman, president and CEO at PRA Group. "As I continue to meet with employees, clients, and service providers across Europe, I have found that the acquisition of Aktiv Kapital and integration are being met positively by all. The magnitude of our opportunity in Europe continues to impress me and by acquiring a pan-European leader, we are well positioned to capitalize on it."
Operating expenses reached $150.8 million in the third quarter, compared to $118.3 million a year ago, an increase of 27%. PRA Group incurred an estimated $5.9 million of non-recurring expenses during the quarter related to the Aktiv Kapital purchase.
