Q2 2024 PRA Group Inc Earnings Call Transcript
Key Points
- PRA Group Inc (PRAA) reported a 13% year-over-year growth in cash collections, driven by higher recent purchases and operational initiatives.
- The company invested $379 million during the quarter, reflecting attractive global pricing and a strong investment strategy.
- PRA Group Inc (PRAA) achieved record investment levels in Europe for any given second quarter in its history.
- The company has successfully expanded its seller relationships in both the U.S. and Europe, contributing to robust investment volumes.
- PRA Group Inc (PRAA) has made significant progress in its U.S. business turnaround, with improvements in operational execution and legal collections processes.
- Operating expenses increased by $31 million year-over-year, primarily due to investments in the U.S. legal channel.
- Interest expense for the second quarter rose by $12 million, reflecting increased interest rates and higher debt balances.
- The company's cash efficiency ratio declined to 59% from 61% in the prior year period, mainly due to higher legal collection costs.
- There is a lag between initial legal investments and resulting cash collections, which may impact short-term cash efficiency.
- The competitive environment in Southern Europe remains intense, leading to selective investments in these markets.
Good evening and welcome to PRA Group's second-quarter 2024 conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the call over to Mr. Najim Mostamand, Vice President, Investor Relations for PRA Group. Please go ahead.
Thank you. Good evening, everyone, and thank you for joining us. With me today are Vik Atal, President and Chief Executive Officer; and Rakesh Sehgal, Executive Vice President and Chief Financial Officer.
We will make forward-looking statements during the call, which are based on management's current beliefs, projections, assumptions and expectations. We assume no obligation to revise or update these statements. And We caution listeners that these forward-looking statements are subject to risks, uncertainties, assumptions and other factors that could cause our actual results to differ materially from our expectations. Please refer to our earnings press release issued today and our SEC filings for a detailed
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