Pra Group Inc. ( (PRAA) ) has released its Q3 earnings. Here is a breakdown of the information Pra Group Inc. presented to its investors.
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PRA Group, Inc. is a global leader in acquiring and collecting nonperforming loans, offering financial services in the Americas, Europe, and Australia. The company recently released its third quarter 2024 financial results, showcasing a notable transformation in its U.S. business and setting ambitious targets for 2025.
In the third quarter of 2024, PRA Group reported a net income of $27.2 million, with diluted earnings per share of $0.69. Total portfolio purchases amounted to $350.0 million, and cash collections reached $477.1 million, a 13.7% increase from the previous year. The company also achieved a record estimated remaining collections (ERC) of $7.3 billion, demonstrating strong cash efficiency and portfolio revenue growth.
Key financial metrics revealed a 30.5% increase in total portfolio revenue and a robust adjusted EBITDA of $1.1 billion for the 12 months ending September 30, 2024. Operating expenses rose by 10.4% due to increased investments in U.S. legal collections, while interest expenses also saw an uptick due to higher debt balances supporting portfolio investments. The effective tax rate for the period was reported at 13.7%.
Looking ahead, PRA Group is on track to meet its 2024 targets, which include strong portfolio investment levels and double-digit cash collections growth. For 2025, the company aims to exceed $1.0 billion in portfolio investments and achieve a double-digit return on average tangible equity, reflecting a strategic focus on growth, profitability, and shareholder value.
