Encore Capital Group of San Diego, a buyer and manager of charged-off credit card and other consumer receivables, said Monday that it swung to a profit in the second quarter, helped by declining interest expenses.
Its net income was $7.3 million, or 31 cents a share. It reported a loss of $800,000, or 4 cents a share, for last year's second quarter.
Interest expenses in the quarter were $3.6 million, versus $16 million a year earlier.
Gross collections rose 9%, to $102.1 million, and revenue from receivable portfolios rose 4%, to $66.3 million.
The company invested $52.5 million to buy charged-off debt with a face value of $1.8 billion. In last year's second quarter it spent $41.1 million for $1.3 billion of debt.