Debt-buying giant PRA Group Inc. announced Wednesday the completion of its public tender offer to purchase shares of Warsaw, Poland-based DTP S.A., a mid-size debt buyer and collection agency active in Poland.
PRA Group’s most recently released financial results reported fourth-quarter drops in both revenue and income, along with mixed news for cash collections. Adjusted total revenue fell nearly 6% in the quarter to $236.7 million. Net income dropped 13% in the quarter to $41 million. The pace of PRA Group’s expenditures on finance receivables slowed in the quarter. Out of $225.9 million in spending, approximately $141 million went to the Americas, while Europe's purchases amounted to more than $84 million. Both figures were lower than year-ago levels. Cash collection source figures for the quarter were mixed, with core business collections climbing by $23 million, but insolvency-related collections falling $28 million. PRA Group’s CEO Steve Fredrickson kept an optimistic tone about the fourth quarter results. In February he said that once the supply of receivables in the U.S. begins to increase, the company will be in a good spot to pick up market share through moves such as the acquisition of bankrupt-account processor Recovery Management Systems Corporation. Market growth in Europe and South America also are being counted on to sustain the company as it waits for an improved U.S. market.