Still sound credit Fundamentals despite pressure on margin in 1Q18
Back to the 1Q18 earnings, revenues surged by 19% yoy, driven by a 20% increase in asset management revenues and a 12% rise in core collections. However, EBITDA was flat in 1Q18 y-o-y amid a high cost-to-collect(31% of revenues) and relatively high overheads (26% of revenues). Overall, the operating expenses / sales ratio rose from 62% in 1Q17 to 71% in 1Q18.
Arrow Global Group's principal activity is to identify, acquire and manage secured and unsecured defaulted loan portfolios from financial institutions, such as banks and credit card companies, as well as retail chains, student loans, motor credit, telecommunication firms and utility companies. Co.'s activities can be divided into three phases: origination and underwriting, which includes debt purchase and sourcing of servicing contracts; asset management, which includes management of Co.- owned debt purchase accounts, master servicing, consortium structures, and data insights and analytics; and repayment – hybrid collections model, which includes in-house collections, and panel management.
Spread Research is France's first Rating Agency, registered by ESMA (European Securities and Markets Authority) and a leading European Independent Credit Research firm, founded in 2004 and based in Lyon, France. Our experienced team offer key research services using a wide range of investment strategies and research methodologies for the High Yield, Emerging Markets, Convertibles and Loan Markets.
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