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Mar 31, 2023
Encore Q1 2023 Earnings Report
Reported normalized consumer behavior and strategic cost management.
Key Takeaways
Encore Capital Group reported first quarter results reflecting normalized consumer behavior and strategic cost management. Global collections reached $462 million, and portfolio purchases increased by 63% to $276 million, driven by a record $213 million in U.S. portfolio purchases.
Global collections totaled $462 million.
Portfolio purchases increased 63% to $276 million.
U.S. portfolio purchases reached a record $213 million.
GAAP EPS was $0.75, impacted by a $0.19 per share charge related to European headcount reductions.
Encore
Encore
Encore Revenue by Segment
Encore Revenue by Geographic Location
Revenue by Segment
Total debt purchasing Revenue
CapyFin.comServicing Revenue
CapyFin.comOther revenues Revenue
CapyFin.comRevenue by Geographic Location
U.S. purchases Revenue
CapyFin.comEurope purchases Revenue
CapyFin.com Forward Guidance
Encore expects portfolio purchases in the U.S. in the second quarter to be at a similar level to those in Q1.
Positive Outlook
- Portfolio purchases in the U.S. in the second quarter are expected to be at a similar level to those in Q1.
- Encore is well-positioned with the operational capability and balance sheet.
- Encore is committed to the critical role in the consumer credit ecosystem.
- Encore is helping consumers regain their financial freedom.
- Encore is capitalizing on the growing portfolio purchasing opportunities in the market.
Challenges Ahead
- Collections have returned to pre-pandemic levels for MCM business in the U.S.
- Collections have stabilized for Cabot business in Europe.
- Took actions in the first quarter to manage our cost base, including headcount reductions in support functions.
- Took a $6 million pre-tax charge.
- GAAP EPS of $0.75 impacted by $0.19 per share charge related to headcount reductions in Europe
Revenue & Expenses
Visualization of income flow from segment revenue to net income