EOS Group records successful 2019/20 financial year

Jul 15, 2020

Increase in revenue due to strong business performance in Eastern Europe
Again, a high level of investment in secured and unsecured receivables
Strong push towards digitalization

Hamburg, Germany, July 15, 2020 – By consistently following its strategic direction as a technology-driven debt collection provider and financial investor, the EOS Group headquartered in Hamburg has again increased its revenue in the 2019/20 financial year. With a 4.8% increase in revenue to EUR 853.1 million, the previous year recorded very positive results. Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew to EUR 343.4 million.

Regional strengths, push for digitalization and high level of investment key success factors

The international provider of tailored financial services, which is part of the Otto Group, can largely attribute its increase in earnings to a substantial 31.3% increase in revenue in Eastern Europe. Other important success factors include the strong push towards digitalization and the cultural development of the EOS Group combined with the consistently high level of investment of EUR 651.3 million in secured and unsecured receivables and real estate.

“I feel very proud as I look back at the last financial year. It is the most successful year in the history of the EOS Group,” says Klaus Engberding, CEO of the EOS Group. “Above all, I would like to single out the tremendous progress we have made in digitalization, with EUR 25 million invested in expanding our core IT systems, and the focus on our cultural transformation process. The use of artificial intelligence and advanced data analyses will help boost innovation in our industry. And in uncertain times like in the wake of the coronavirus pandemic, in particular, reliable processes, highly professional receivables management and sustainable financing are more important than ever for companies. We can offer all of this to our customers and we expect successful growth for our business in the coming year too.”

Distribution of consolidated revenue of EOS Group in fiscal 2019/20 among global partner companies — Revenue of the EOS Group in the various regions for fiscal 2019/20

Germany remains most important EOS market

Germany is again the strongest performing region in the EOS Group, with a 35.6% share of the consolidated revenue. The decline compared to the previous year to EUR 303.3 million resulted primarily from the sale of EOS Health Honorarmanagement AG. Even though fewer significant debt packages were offered on the highly competitive German market, EOS won crucial revolving portfolios and confirmed its leading position on account of its many years of experience and good reputation. Totaling EUR 236.0 million, the level of investment exceeded that of the previous year – particularly in the area of unsecured receivables.

“The success in Germany is primarily due to our operational excellence and intense sales activities in close proximity to our customers. Together with numerous digitalization initiatives and our outstanding reputation – also with respect to data protection – this makes us a reliable and attractive partner for our customers,” says Andreas Kropp, Member of the EOS Group’s Board of Directors and responsible for the German market. “To secure this position and our future viability, we are focusing our investments on our most important areas: employees, culture and technology.”

More information on the EOS financial year 2019/20 in Germany.

Substantial revenue increase in Eastern Europe leads to record high

With a EUR 63.6 million increase in revenue compared with the previous year to EUR 266.7 million in the region of Eastern Europe, EOS is thrilled to achieve a record high. This can be largely attributed to much higher revenues from receivables purchases, especially in Russia and Poland, but Croatia, Hungary, Serbia and Bulgaria also made significant gains in revenue. Other major drivers included the development of collection software “Kollecto +” and the resulting increased efficiency in the processing of receivables. In the last financial year, EOS in Eastern Europe also carried out significant transactions in non-performing loans (NPL). The highest NPL investments were made in Poland, Croatia, Russia and Hungary. In addition, with an NPL portfolio comprising EUR 350 million, Bulgaria made the largest secured debt purchase on the Bulgarian market to date.

“Our strong local expertise, our approach to dealing fairly with defaulting payers and our cooperation with customers, often across borders, are all paying off,” explains Marwin Ramcke, Member of the EOS Group’s Board of Directors and responsible for Eastern Europe. “As a result, we gained important momentum in secured and unsecured debt collection and could share knowledge and expertise within the Group. We also made substantial investments in secured debt portfolios in Slovenia and Serbia, and are now in a position to process secured and unsecured receivables in all the Eastern European countries in the best possible way,” says Ramcke.

More information on the EOS financial year 2019/20 in Eastern Europe.

Stable business performance in Western Europe

In Western Europe, the very pleasing operational business performance in Belgium, France and Austria resulted in a 5% overall increase in revenue, exceeding the previous year’s result. Therefore, the regional EOS companies again held their ground as the leading provider for debt purchasing. Despite persistently tough market conditions, France stood out and made significantly larger investments in both portfolios secured by real estate and unsecured portfolios. Belgium and Spain also increased their investment activities. The nominal value of a package of 47,000 receivables that EOS Aremas in Belgium purchased from bpost bank, for example, is EUR 36 million.

“The EOS Group is very well positioned in Western Europe. Thanks to our expertise and many years of experience, especially in banking and telecommunications, we are a preferred strategic partner for our customers,” comments Dr. Andreas Witzig, Member of the EOS Group’s Board of Directors and responsible for the Western European and North American regions. “We are making huge investments in big data and analytics and are helping to resolve problems relating to NPLs. Despite the coronavirus crisis, which has hit France and Spain particularly hard, we remain a reliable partner in the field of fiduciary services and debt purchasing,” confirms Witzig.

More information on the EOS financial year 2019/20 in Western Europe.

Growing investments in North America

With a five percent increase in revenue of EUR 2.6 million, the North American region was slightly above the previous year’s result. In particular, the strategic focus on debt purchasing, in which EOS invested a total of EUR 28.8 million, almost EUR 4 million more than the previous year, paid off in the USA. In Canada, revenue was markedly above the 2018/19 financial year and thus well above target. The focus on fiduciary services, in particular, was developed further.

“The North American market is a challenging environment for the EOS Group, but Canada is developing very satisfactorily,” comments Dr. Andreas Witzig, Member of the EOS Group’s Board of Directors and responsible for the Western European and North American regions. “We have become one of the market leaders in fiduciary collection there in recent years and have clearly exceeded the expectations for revenue and earnings for 2019/20. Along with our Canadian team, we are very proud of this. In the US, our increased investment in purchase of receivables is showing positive trends. We intend to continue this focus in the current financial year,” adds Witzig.

About EOS Group

The EOS Group is one of the leading technology-driven financial investors and an expert in the processing of outstanding receivables. The company's core business is the purchase of unsecured and secured debt portfolios. With over 40 years of experience, EOS offers some 20,000 customers in 26 countries around the world smart services for all their receivables management needs. Its key target sectors are banking, utilities, real estate and e-commerce. EOS employs more than 7,500 people and is part of the Otto Group.

For more information on EOS Group, please go to eos-solutions.com

Tool name		Cookieconsent_status
Tool provider	EOS Holding GmbH
Address of tool provider	Steindamm 71, 20099 Hamburg, Germany
Tool description	Essential cookie to save consent banner inputs.
Data processed	None
Purpose of data processing	To save consent
Retention period	60 days

Tool name		Java Session Cookie
Tool provider	EOS Holding GmbH
Address of tool provider	Steindamm 71, 20099 Hamburg
Tool description	Randomly generated session number essential for the proper functioning of the application software.
Data processed	None
Purpose of data processing	Proper functioning of website
Retention period	Session cookie – is deleted after you have closed your browser.

Tool name		Visitor
Tool provider	EOS Holding GmbH
Address of tool provider	Steindamm 71, 20099 Hamburg, Germany
Tool description	We use this cookie to make it easier for you to use this website.
Data processed	None
Purpose of data processing	Optimization, improvement of service
Retention period	Session cookie – is deleted after you have closed your browser.

Tool name	NEW_Visitor
Tool provider	EOS Holding GmbH
Address of tool provider	Steindamm 71, 20099 Hamburg, Germany
Tool description	We use this cookie to make it easier for you to use this website.
Data processed	None
Purpose of data processing	Optimization, improvement of service
Retention period	1 day

Tool name		nmstat
Tool provider	Siteimprove GmbH
Address of tool provider	Rosenheimer Str. 143 C, 81671 Munich, Germany
Tool description	This cookie contains an ID character string for the current session. It contains non-personally identifiable information about which sub-pages the visitor enters – this information is used to optimize the user experience.
Data processed	None
Purpose of data processing	Analysis, statistics
Retention period	399 days

Tool name		Facebook Pixel
Tool provider	Meta Platforms Ireland Limited
Address of tool provider	4 Grand Canal Square, Grand Canal Harbour, Dublin, D02, Ireland.
Tool description	Used by Meta to serve ads, measure and improve ad relevance, and offer advertising products on Meta.
Data processed	Ads Viewed \| Pages Visited \| Browser Information \| Facebook Cookie Information \| Facebook User ID \| Geographic Location \| Device Information \| HTTP Header \| Interactions with Ads, Services and Products \| IP Address \| Marketing Information \| Usage Data & Behavior \| Pixel ID \| Referrer URL \| User Agent
Purpose of data processing	Analysis \| Conversion Tracking \| Marketing \| Social Media \| Advertising
Retention period	__fbp (duration: 3 months)

Tool name		LinkedIn
Tool provider	LinkedIn Ireland Unlimited Company
Address of tool provider	LinkedIn Ireland Unlimited Company Wilton Place, Dublin 2, Ireland
Tool description	This cookie is used to obtain anonymized reports about the website target audience and the possibility of targeted advertising, e.g., in the context of retargeting.
Data processed	Device information, browser information, IP address, referrer URL and time stamp.
Purpose of data processing	Marketing, analysis, retargeting
Retention period	Cookie Name (duration: 90 days)

Tool name		Google Analytics
Tool provider	Google Ireland Limited
Address of tool provider	Google Building Gordon House, 4 Barrow St, Grand Canal Dock, Dublin 4, D04 V4X7, Irland
Tool description	Used to track website activity such as session duration, pages per session and the engagement rate of individuals using the site, along with the information on the source of the traffic
Data processed	Ads Viewed \| Pages Visited \| Browser Information \| Facebook Cookie Information \| Facebook User ID \| Geographic Location \| Device Information \| HTTP Header \| Interactions with Ads, Services and Products \| IP Address \| Marketing Information \| Usage Data & Behavior \| Pixel ID \| Referrer URL \| User Agent
Purpose of data processing	Ad personalization \| Ad user data \| Ad storage \| Analytics storage
Retention period	__fbp (duration: 3 months)

Regional strengths, push for digitalization and high level of investment key success factors

Germany remains most important EOS market

Substantial revenue increase in Eastern Europe leads to record high

Stable business performance in Western Europe

Growing investments in North America

About EOS Group

Necessary

Comfort

Statistics

Marketing

EOS Holding GmbH