- 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.”
Germany remains most important EOS market
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.