The Credit Corp Group Ltd (ASX: CCP) share price has crashed 13.87% to $12.30 a piece at the time of writing on Tuesday morning. Today's decline follows the company's H1 FY26 financial results, which were released ahead of the ASX open this morning.
Today's share price drop means Credit Corp's shares are now 13.2% lower for the year to date. They are also 18.81% below the trading price this time last year.
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Credit Corp share price crashes on results day
Here's what the debt collection company posted this morning:
- Revenue up 4% to $283.6 million
- Net profit after tax (NPAT) flat at $44.1 million
- Dividends per share flat at 32 cents
What happened in H1 FY26?
Credit Corp posted a flat NPAT of $44.1 million for the first half of FY26. This was despite reporting a 4% increase in revenue, to $283.6 million, for the six-month period.
The debt collectors' US business reported the strongest growth, with revenue from its US debt buying segment up 25% to $73.7 million. Its NPAT also surged 63% to $11.7 million.
The company's overall results were dragged down by weaker results in its Australian and New Zealand segment. This business segment faced significant headwinds over the first half of the year.
Its Australian/NZ debt buying division and collection services saw revenue drop 6% to $108.1 million and NPAT decline 10% to $10.9 million. The business segment has suffered over the past few months after several issuers temporarily suspended debt book sales, which impacted the company's collection volumes.
The AU/NZ lending business segment reported a 4% increase in its revenue, to $101.8 million. But its NPAT fell 14% to $21.5 million. This was despite a 14% increase in total settled loans to $223.3 million.
"While the AU/NZ debt buying market remains competitive as buyers attempt to secure volume in a diminished post-COVID market, there are some early signs of increasing supply," the company said in a media release this morning.
"Interest bearing credit card balances grew +12% over the half year. In time, this growth will likely be reflected in charge-offs and sale volumes."
Credit Corp said it would pay investors an interim dividend of 32 cents per share. This is unchanged from the FY25 interim dividend and "is consistent with the long-standing practice of paying out ~50% of earnings".
What's ahead for Credit Corp?
The business is still optimistic about the outlook for the full FY26 financial year. Credit Corp has kept its guidance unchanged. The company expects NPAT of $105 million, which sits in the middle of its $100 to $110 million guidance range.
The company projects that H2 of FY26 will deliver NPAT of $61 million, compared to $44 million in H1.
