Intrum - comment

Unfortunately, the call was capped and we were somehow unable to ask our questions. The obvious ones to ask would have been about the shape of the back-book if we now have to work it harder to achieve our Cash EBITDA, as has become visible in Q4. The next question would have to be about the implicit consequences for the valuation of that book. Meanwhile, Intrum are planning to age that book too, by diverting cash flow away from new purchases and towards debt repayment. We agree that this will improve leverage stats based on the flawed Cash EBITDA metric, but it will de-facto lever Intrum up from an LTV perspective. Still, even as debt collectors are facing a difficult time, Intrum remains one of the best.