Aktiv Kapital Reports Lower Earnings, Revenue in Quarter

European accounts receivable management giant Aktiv Kapital announced late last week that earnings and revenue were down in the third quarter of 2008 on the impact of a global economic slowdown and falling currency values against its native Norwegian kroner.

Oslo, Norway-based Aktiv Kapital reported a profit before tax of $4.2 million for the third quarter of 2008, a 65 percent drop from the third quarter of 2007.

Operating revenues for the quarter were $45 million in quarter, down 17.3 percent from the year ago period.

Aktiv said in a statement that the shortfall in operating revenue in the third quarter of 2008 compared to 2007 is a combined effect of lower cash collection due to the general macroeconomic situation and currency effects. This is especially due to the weakening of British pound compared to the Norwegian kroner, but also negative currency effects from other currencies where the company has operations.

Aktiv Kapital invested $62 million in new portfolios in the third quarter of 2008, up from the $43.7 million it invested in portfolio purchases in Q3 2007. The company acquired 92,000 accounts in the quarter with a face value of $711.5 million. The vast majority of accounts were from consumers in Austria, Germany and the UK. Aktiv announced in September that it had purchased its largest consumer debt portfolio ever in Austria.

In an earnings press release, management commented that the company “is experiencing an increase in the number and size of portfolios coming to market, and portfolio prices are coming down rapidly. Aktiv Kapital believes that the recent portfolio acquisition in Austria reflects this development in the market. The Austrian portfolio acquisition confirms Aktiv Kapital’s current focus on acquiring portfolios with good existing cash flows which significantly reduces the risk in the acquisitions.”