Credit Corp Group Ltd

CCP: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$75.50	Vnj	Dnwxwfmd

Credit Corp Group Earnings: Operational Improvements but Macro Headwinds Linger

Shaun Ler

Jul 30, 2024

No-moat Credit Corp delivered stronger-than-expected fiscal 2024 results, with statutory net profit after tax (including one-off impairment of debt ledgers) of AUD 51 million, exceeding our forecast of just below AUD 40 million. The decline in group EBITDA margins to 23% from 33% in the prior year was less severe than anticipated, mainly due to better cash collections from debt ledgers. NPAT guidance for fiscal 2025 also exceeded our prior projections, supported by (1) improved operational efficiencies, (2) interest from a large consumer loan balance, which grew 24% from the prior year, and (3) cost control in declining business units, namely ANZ debt purchasing.

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