Credit Corp Group (CCP) H1 2025 earnings summary

Executive summary

• Achieved 32% growth in underlying NPAT to $44.1 million, with revenue up 45% to $271.5 million and a turnaround from a prior year loss.

• US collections increased 12% year-over-year, with operational improvements and labour productivity up 28%.

• Consumer lending book grew 5% to a record $465 million, driving a 79% increase in lending segment NPAT to $24.9 million.

• Australian and New Zealand debt buying NPAT declined by 10%, but run-off stabilized and further declines are not expected.

• Interim dividend of 32 cents per share declared, nearly 50% payout of H1 earnings.

Financial highlights

• Revenue reached $271.5 million, up 45% year-over-year; NPAT was $44.1 million, up 32% year-over-year, excluding prior period US PDL impairment.

• Basic EPS increased to 64.8 cents from -17.8 cents prior year; dividend doubled to 32.0 cents.

• Operating cash flow improved to $34.2 million from -$25.7 million prior year.

• US debt buying revenue up 15% year-over-year; AU/NZ lending revenue up 20%.

• Net tangible assets per share rose to $12.44 from $10.56 year-over-year.

Outlook and guidance

• FY2025 NPAT guidance reaffirmed at $90–$100 million, representing 11–23% growth over FY24.

• FY25 ledger investment guidance maintained at $200–$250 million; net lending guidance at $45–$55 million.

• EPS guidance for FY25 set at 132–147 cents.

• US purchasing pipeline expected to resume, with $150 million targeted for full-year outlays.

• Lending segment earnings expected to remain strong, with new products such as the Wizit digital credit card set for launch late FY2025.