The Credit Corp Group Limited (ASX: CCP) share price jumped 5.7% to $22.77 on Tuesday morning, after the Australian debt buyer beat market expectations with the release of its first-half results and an upgrade for its second half outlook.
A summary of the results is provided below:
- 13% growth in net profit after tax on the previous corresponding period
- 8% revenue growth, with 71% growth in US revenue
- A 36 cents per share dividend, up 16%
- 18% growth in its consumer loan book
- Debt headroom of approx. $100m under present banking facilities, providing the capability to take advantage of expected future investment opportunities
Upgraded 2H19 outlook
The company has again upgraded its outlook for the remainder of the 2019 financial year, having previously upwardly revised its guidance in November 2018.
The company expects FY19 net profit after tax in the range of $69 – $70 million, representing growth of 7% to 9%. Most recent guidance prior to today's update had been in the range of $67 – $69 million.
The company's revised outlook also shows upgraded guidance for PDL acquisitions, net lending volumes and earnings per share.
CEO of Credit Corp, Thomas Beregi said that the results represent very strong operational performance despite reduced investment in the company's core Australia and New Zealand segment. Mr Beregi attributed this to Credit Corp's product being the most affordable and sustainable in the market.
He said: 'Wallet Wizard is the cheapest cash loan available in our segment of the market. It is substantially cheaper than any commercially-provided offering and is even cheaper than a charitably-funded alternative from the not-for-profit provider.'
The Credit Corp share price has climbed 21.48% higher since the beginning of the year compared to the S&P/ASX 200 index which has gained 3.97% in the period.
