EOS Magazine
Press releases
- EOS clearly profitable despite slight decline in revenue and earnings
- High level of investment in secured and unsecured receivables accompanied by targeted cost-cutting measures
- Corporate responsibility to be firmly embedded in business model
Hamburg, August 11, 2021 – Despite all the challenges of the COVID-19 pandemic, the Hamburg-based EOS Group successfully concluded its 2020/21 financial year (ending on 28 February). With a slight decline in revenue of 7.1 percent to EUR 792.5 million, the financial investor and technology-driven debt collection service provider reported earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 312.4 million (previous year: EUR 343.4 million). Apart from the restrictions on collection activity due to statutory moratoriums in several countries, the financial year was marked by a decline in the volume of non-performing loans (NPLs) on offer on the receivables market. Nevertheless, EOS was once again able to invest a significant sum (EUR 534.3 million) in secured and unsecured receivables and real estate in need of restructuring.
“In view of the difficult conditions of the last year, the positive operating result was by no means a given,” says Klaus Engberding, CEO of the EOS Group. “We needed to continually assess the wider implications of the pandemic, make the right investment decisions and adjust our costs accordingly. I am therefore extremely proud of the fantastic achievement of our teams who faced up to these challenges and made this success possible through their dedicated collaboration.”
Social responsibility to become integral part of business model
The ongoing development of the organization and heavy investment in IT to improve business operations were the key drivers behind the sustained stability of EOS. The values-driven yet forward-looking approach of EOS, which is part of the Otto Group, also contributed to its success. With a new corporate responsibility (CR) strategy, the EOS Group aims to firmly embed four key actionable areas into its business model in future. In this context, the focus is on solution-driven and sustainable debt relief for defaulting consumers, proactive funding initiatives and (financial) education measures, climate-neutral operation by 2030, and the championing of strict and binding industry standards in all 26 countries where the company is located.
“As one of the leaders in our industry we are absolutely aware of our responsibility towards society. Through our actions, we do not just want to help the economic system to function by improving the financial situation of our clients and of defaulting payers; we also aim to use our new CR strategy to do our part to change the world we operate in for the better overall,” says Engberding.
Different figures may appear in tables due to rounding.
Germany remains the most important EOS market
With a turnover of EUR 289.1 million and a 36.5 percent share of consolidated revenue, Germany continues to be the region with the highest revenue within EOS Consolidated. At EUR 168.2 million, the investment level in receivables and real estate was stable. “Our success is primarily due to our operational excellence and understanding of our customers’ needs, which makes us a strong and reliable partner in the debt purchasing and fiduciary collection business,” says Andreas Kropp, member of the EOS Group's Board of Directors with responsibility for the German market. “Even in this challenging year, we continued to systematically pursue the digitalization of the company and in doing so have given a substantial boost to our future viability.”
As a longstanding member of the German Association of Debt Collection Companies (BDIU), EOS has continued its commitment to high ethical standards in the industry. In the last financial year it also established an in-house ‘hardship case community’, where specially trained personnel find solutions for cases of debt affecting people in permanently dire financial straits. Moreover, the company is committed to financial education for children and young people through its finlit foundation, whose ‘ManoMoneta’ initiative has already reached more than 100 schools.
Eastern Europe once again the highest earning region in the EOS Group
Despite a decline in revenue to EUR 249.7 million, Eastern Europe is still the highest earning region within EOS Consolidated. EOS has its own subsidiaries in 15 countries in Eastern Europe. A major driver for this result was the substantial year-on-year increase in results in Russia, Slovenia, Slovakia and Poland. In addition, EOS was able to increase investment in NPLs in the region in the last financial year by around three percent to EUR 195.3 million. The highest NPL investments were made in Croatia, Poland and Russia.
“Thanks to our local expertise we made substantial investments in secured and unsecured NPLs again this year and are going to rigorously pursue this strategy again in the current financial year,” says Marwin Ramcke, member of the EOS Group’s Board of Directors responsible for the Eastern European region. “We are also pushing ahead with the digitalization process and are successively rolling out our international collection software ‘Kollecto+’, which we developed in-house, in all Eastern European countries where EOS is represented.
In addition, an international HR department was established in Hungary. As well as strategic HR issues, it will also manage the Group’s cultural change process outside of Germany.
Stable business performance in Western Europe
The continued stable business performance in France, Belgium, Spain and Denmark enabled EOS to report a good result overall for Western Europe. At EUR 207.1 million, the region accounted for more than a quarter (26.1 percent) of the total revenue of EOS Consolidated. Moreover, the EOS companies in France and Belgium were able to reinforce their position as leading providers for debt purchases. In Spain too, EOS increasingly shifted its focus from fiduciary collection to receivables purchasing, and was able to build up a strong market position as a buyer of debt portfolios.
Accordingly, EOS in Spain closed the year with record investments, e.g. in three NPL portfolios comprising a total 232,000 receivables and with a nominal value of EUR 810 million. “Thanks to our longstanding experience, and despite the lower volume of NPLs on the market, we were once again a preferred partner for our customers,” explains Dr. Andreas Witzig, member of the EOS Group’s Board of Directors with responsibility for Western Europe. “Our companies in the region are in a good position, so we are confident of being able to continue to expand our receivables purchasing activities in the new financial year.”
Higher sales revenues in North America
In North America, EOS was able to substantially increase its earnings from receivables purchases, despite a lower revenue overall of EUR 46.6 million. Solid investments in the USA were the key to this result. In Canada too, EOS was able to improve its result on a year-on-year basis in fiscal 2020/21 thanks to strict cost discipline. “The COVID-19 crisis hit the North American market hard, but we were in the position to offset the considerable loss of revenue on the earnings side through massive cost savings,” explains Dr. Andreas Witzig, member of the EOS Group’s Board of Directors with responsibility for North America.
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 45 years of experience, EOS offers some 20,000 customers in 26 countries around the world smart services for all their receivables management needs. Its focus is on banks and companies from the real estate, telecommunications, energy supply and e-commerce sectors. EOS employs more than 6,800 people and is part of the Otto Group.
“In view of the difficult conditions of the last year, the positive operating result was by no means a given,” says Klaus Engberding, CEO of the EOS Group. “We needed to continually assess the wider implications of the pandemic, make the right investment decisions and adjust our costs accordingly. I am therefore extremely proud of the fantastic achievement of our teams who faced up to these challenges and made this success possible through their dedicated collaboration.”
Social responsibility to become integral part of business model
The ongoing development of the organization and heavy investment in IT to improve business operations were the key drivers behind the sustained stability of EOS. The values-driven yet forward-looking approach of EOS, which is part of the Otto Group, also contributed to its success. With a new corporate responsibility (CR) strategy, the EOS Group aims to firmly embed four key actionable areas into its business model in future. In this context, the focus is on solution-driven and sustainable debt relief for defaulting consumers, proactive funding initiatives and (financial) education measures, climate-neutral operation by 2030, and the championing of strict and binding industry standards in all 26 countries where the company is located.
“As one of the leaders in our industry we are absolutely aware of our responsibility towards society. Through our actions, we do not just want to help the economic system to function by improving the financial situation of our clients and of defaulting payers; we also aim to use our new CR strategy to do our part to change the world we operate in for the better overall,” says Engberding.
| 2020/21 | 2019/20 | |
|---|---|---|
| Sales revenue (in EUR million) | 792.5 | 853.1 |
| of which | ||
| Germany | 289.1 | 303.3 |
| Eastern Europe | 249.7 | 266.7 |
| Western Europe | 207.1 | 232.0 |
| North America | 46.6 | 51.0 |
| EBITDA (in EUR million) | 312.4 | 343.4 |
Germany remains the most important EOS market
With a turnover of EUR 289.1 million and a 36.5 percent share of consolidated revenue, Germany continues to be the region with the highest revenue within EOS Consolidated. At EUR 168.2 million, the investment level in receivables and real estate was stable. “Our success is primarily due to our operational excellence and understanding of our customers’ needs, which makes us a strong and reliable partner in the debt purchasing and fiduciary collection business,” says Andreas Kropp, member of the EOS Group's Board of Directors with responsibility for the German market. “Even in this challenging year, we continued to systematically pursue the digitalization of the company and in doing so have given a substantial boost to our future viability.”
As a longstanding member of the German Association of Debt Collection Companies (BDIU), EOS has continued its commitment to high ethical standards in the industry. In the last financial year it also established an in-house ‘hardship case community’, where specially trained personnel find solutions for cases of debt affecting people in permanently dire financial straits. Moreover, the company is committed to financial education for children and young people through its finlit foundation, whose ‘ManoMoneta’ initiative has already reached more than 100 schools.
Eastern Europe once again the highest earning region in the EOS Group
Despite a decline in revenue to EUR 249.7 million, Eastern Europe is still the highest earning region within EOS Consolidated. EOS has its own subsidiaries in 15 countries in Eastern Europe. A major driver for this result was the substantial year-on-year increase in results in Russia, Slovenia, Slovakia and Poland. In addition, EOS was able to increase investment in NPLs in the region in the last financial year by around three percent to EUR 195.3 million. The highest NPL investments were made in Croatia, Poland and Russia.
“Thanks to our local expertise we made substantial investments in secured and unsecured NPLs again this year and are going to rigorously pursue this strategy again in the current financial year,” says Marwin Ramcke, member of the EOS Group’s Board of Directors responsible for the Eastern European region. “We are also pushing ahead with the digitalization process and are successively rolling out our international collection software ‘Kollecto+’, which we developed in-house, in all Eastern European countries where EOS is represented.
In addition, an international HR department was established in Hungary. As well as strategic HR issues, it will also manage the Group’s cultural change process outside of Germany.
Stable business performance in Western Europe
The continued stable business performance in France, Belgium, Spain and Denmark enabled EOS to report a good result overall for Western Europe. At EUR 207.1 million, the region accounted for more than a quarter (26.1 percent) of the total revenue of EOS Consolidated. Moreover, the EOS companies in France and Belgium were able to reinforce their position as leading providers for debt purchases. In Spain too, EOS increasingly shifted its focus from fiduciary collection to receivables purchasing, and was able to build up a strong market position as a buyer of debt portfolios.
Accordingly, EOS in Spain closed the year with record investments, e.g. in three NPL portfolios comprising a total 232,000 receivables and with a nominal value of EUR 810 million. “Thanks to our longstanding experience, and despite the lower volume of NPLs on the market, we were once again a preferred partner for our customers,” explains Dr. Andreas Witzig, member of the EOS Group’s Board of Directors with responsibility for Western Europe. “Our companies in the region are in a good position, so we are confident of being able to continue to expand our receivables purchasing activities in the new financial year.”
Higher sales revenues in North America
In North America, EOS was able to substantially increase its earnings from receivables purchases, despite a lower revenue overall of EUR 46.6 million. Solid investments in the USA were the key to this result. In Canada too, EOS was able to improve its result on a year-on-year basis in fiscal 2020/21 thanks to strict cost discipline. “The COVID-19 crisis hit the North American market hard, but we were in the position to offset the considerable loss of revenue on the earnings side through massive cost savings,” explains Dr. Andreas Witzig, member of the EOS Group’s Board of Directors with responsibility for North America.
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 45 years of experience, EOS offers some 20,000 customers in 26 countries around the world smart services for all their receivables management needs. Its focus is on banks and companies from the real estate, telecommunications, energy supply and e-commerce sectors. EOS employs more than 6,800 people and is part of the Otto Group.
About EOS Group
The EOS Group is one of the leading technology-driven financial investor 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 45 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, insurance companies, utilities, real estate and e-commerce. EOS employs more than 7,500 people and is part of the Otto Group.Financial investor EOS awarded A rating yet again
Hamburg, August 3, 2021 – For the 17th time in a row, Scope Hamburg, formerly Euler Hermes Rating, has given EOS Holding an A rating. Thanks to the company’s high earnings and very stable cash flows, the rating agency once again confirmed the excellent credit standing of EOS. The rating rationale also emphasized the extensive experience of EOS, as a financial services provider and investor, in the valuation, acquisition and recovery of non-performing receivables, its leading market position in Germany and strong market position in Europe.EOS weathered the COVID-19 crisis solidly and was able to cement the trust of its business partners. Accordingly, Scope Hamburg rates the company’s financial risk as low and its capital structure, deleveraging potential and interest coverage ratio as good or very good. The rating agency also expects the company’s earnings to grow in the current 2021/22 financial year.
Sustained investment at a high level
“The last financial year was particularly challenging. We needed to assess the potential effects of the crisis in good time and make the right investment decisions. By successfully bringing down costs during this period, the decline in earnings stayed within acceptable limits and EOS made a clear profit, even in this crisis year,” explains Justus Hecking-Veltman, Chief Financial Officer of the EOS Group. “For our development going forward, two decisions were important: Firstly, we again invested heavily in receivables packages. And secondly, we systematically pursued the upgrade of our IT systems to enable us to manage the company even better and with the use of more digital tools in future.”
EOS has stepped up its activities as a financial investor in recent years and has become established in many countries as a market leader for the purchase of debt packages. In fiscal 2020/21, the company invested EUR 534.3 million in unsecured and secured receivables and real estate in need of restructuring.
About EOS Group
The EOS Group is one of the leading technology-driven financial investor 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 45 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, insurance companies, utilities, real estate and e-commerce. EOS employs more than 7,500 people and is part of the Otto Group.- Great opportunity for companies: More than a third of consumers in favor of “compensation for data”
- Majority willing to sell at least one item of personal information to a trustworthy company
- Willingness to disclose data even exceeds demand in some cases
Hamburg, October 6, 2020 – In today's digital environment, data like bank account number, date of birth, address, health details or purchasing preferences have become a key economic asset. This is why the handling of data and its value, and the reasons why companies are keen to make use of it, are increasingly a topic of public debate. This has also been validated by a recent representative survey entitled “What’s the value of data?” conducted in 17 countries by financial services provider and investor EOS. The survey revealed that more than 60 percent of consumers in Europe and the USA and as many as 70 percent in Russia believe that companies should compensate customers for the use of their data. More than a third of respondents, and in Russia as many as half, said they were willing to provide certain data in return for compensation.
Trust and financial rewards the drivers for increased disclosure of data
For people to be prepared to disclose personal data, it is crucial for them to trust a company or organization to handle their data responsibly and adhere to the relevant statutory regulations. The EOS survey showed that a clear majority of consumers would sell at least one item of personal data for money to a trustworthy company (Europe: 82 percent, USA: 75 percent, Russia: 90 percent). People are least concerned about disclosing purchasing decisions and preferences for products and brands, but consider account or credit card details, or insights into their bank account, to be especially worthy of protection. When asked about their specific compensation preferences, more than half of the respondents found material rewards and discounts particularly attractive, whereas in all regions there was less demand for services as compensation, with only around 20% in favor of this option.
Data analysis as the basis for modern receivables management
A look at receivables management shows that it is worthwhile for companies to provide incentives to consumers to disclose their data. Because the better the data available about the purchaser of a product or service, the quicker they can be reached in the event of a payment default. And, the more empirical data from similar receivables cases is already available, the better the proposed installment plan will match the customer’s financial situation and the more likely the customer will comply with it as a result. This is why its Center of Analytics plays a key role at receivables management service provider EOS. With the help of machine learning algorithms, its central platform analyses thousands of debt collection cases to determine the best processing steps to be taken next.Willingness to disclose data even exceeds demand in some cases
The EOS survey revealed that one in five consumers had already been offered compensation to disclose certain details. In Europe this was most common in Spain and Romania, where as many as one in four consumers had received such an offer. In some cases, however, the willingness of consumers to disclose data actually exceeds the number of offers of compensation by companies. “I think there are still significant opportunities and unexploited potential here,” stresses Joachim Göller.
“Already, installment plans are produced on the basis of intelligent data analysis in a lot of the countries where EOS operates,” explains Joachim Göller, Head of the Center of Analytics. “It is in the interest of all parties to conclude a collection case as soon as possible to save costs on both sides. And this is where data can help. The sooner the contact is established and the better the chances of the payment agreement being met, the more likely it is for the creditor to get their money and the consumer to become debt-free. So it can absolutely be in the interests of the defaulting payer to disclose data.”
About the representative EOS survey “What's the value of data?” 2020
The EOS survey, which was conducted in partnership with market research institute Kantar in the spring of 2020, is representative of the (online) population over the age of 18 in the 17 countries polled. A random sample of 1,000 respondents from each of the countries Belgium, Bulgaria, Croatia, Czech Republic, France, Germany, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, Spain, Switzerland, the UK and the USA, and 300 respondents from North Macedonia, was used for the analysis. The survey participants answered questions on their personal handling and disclosure of data, their trust in companies, and their willingness to sell data for compensation.Več informacij o anketi najdete tukaj.
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.- Profit growth driven by strong business growth in Eastern Europe
- High investment in secured and unsecured receivables
- Strong focus on digitalisation
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.”
Overview of relevant indicators:
|
2019/20 |
2018/19 |
|
|
Revenue (€ million) Of which Germany Western Europe Eastern Europe North America |
853,1 303,3 232,0 266,7 51,0 |
813,7 341,1 220,9 203,2 48,5 |
|
EBITDA (mio. €) |
343,4 |
283,6 |
Further important indicators can be found in our online business report.
Germany remains the EOS Group's most important market
Germany remains the EOS Group's highest revenue region with a 35.6% share of total turnover. The decrease to EUR 303.3 million compared to the previous year is due to the sale of EOS Health Honorararmanagement AG. Although a smaller number of relevant claim packages were available in the highly competitive German market, the EOS Group was able to build on its long-standing experience and good reputation to acquire decisive renewable portfolios and thus consolidate its leading position. With a total of EUR 236.0 million, the level of investments exceeded that of the previous year - especially in the area of unsecured claims.
"Our success in Germany is mainly due to our operational excellence and intensive customer-focused sales. Our many digitalization initiatives and our excellent reputation - also in the area of data protection - make us a reliable and attractive partner," says Andreas Kropp, EOS Group Managing Director and responsible person for Germany. "To this end, and to secure our future, we are investing in our most important areas in a focused way: our colleagues, culture and technology."
Significant traffic growth in Eastern Europe sets new records
In Eastern Europe, EOS saw turnover grow from €63.6 million to €266.7 million, a real record compared to the previous year. The significant growth in turnover from receivables purchases, especially in Russia and Poland, played an important role. At the same time, we also saw a marked increase in turnover in Croatia, Hungary, Serbia and Bulgaria. Important drivers of the success include the development of the collection software "Kollecto+" and the resulting increased efficiency in the processing of receivables. In addition, EOS was also able to realise significant business in the area of non-performing loans in Eastern Europe in the past financial year. The largest investments in non-performing loans were made in Poland, Croatia, Russia and Hungary. Bulgaria also made the largest ever secured purchase of receivables on the Bulgarian market with a non-performing loan portfolio of EUR 350 million.
"Our extensive knowledge of the local environment, the fair treatment of bad debtors and the partnership and often international cooperation with our customers pays off," explains Marwin Ramcke, EOS Group Managing Director and Eastern Europe Country Manager. "This has allowed us to introduce significant incentives for both secured and unsecured receivables and to share expertise within the Group. In addition, we have invested heavily in secured receivables packages in Slovenia and Serbia and are now able to optimally process secured and unsecured receivables in all Eastern European countries," says Ramcke.
Stable business development in Western Europe
In Western Europe, the very positive business development in Belgium, France and Austria led to an overall increase in turnover of 5% and thus an improvement on the previous year.The EOS Group's regional companies thus re-established themselves as leading providers for the underwriting of receivables. Despite the challenging market environment, France stood out and invested significantly more heavily in both real estate secured and unsecured portfolios. Belgium and Spain were also able to strengthen their investment activities. For example, the nominal value of the 47,000 receivables purchased by EOS Aremas in Belgium from bpost bank amounts to EUR 36 million.
"The EOS Group is very well positioned in Western Europe. Thanks to our expertise and many years of experience, especially in the banking and telecommunications sector, we are a preferred strategic partner for our customers," comments Dr. Andreas Witzig, Member of the EOS Group Management Board and responsible for Western Europe and North America. "We invest heavily in big data and analytics and help to solve non-performing loans. Despite the coronavirus crisis, which has particularly affected France and Spain, we remain a reliable and preferred strategic partner in the field of debt recovery and underwriting," confirms Witzig.
Future investments in North America
With an increase in turnover of €2.6 million, the North America region was slightly above the previous year's level, up 5%. In the US, the strategic focus on debt underwriting in particular paid off, with the EOS Group investing a total of €28.8 million, almost €4 million more than the previous year.In Canada, turnover was noticeably above the 2018/19 financial year and thus significantly above plan. Above all, we were able to focus even more strongly on claims management.
"The North American market is not an easy environment for the EOS Group, but Canada is developing very well," commented Dr. Andreas Witzig, Member of the EOS Group Management Board and responsible for Western Europe and North America. "We have developed into one of the leading claims management companies there in recent years and have significantly exceeded our turnover and profit expectations for 2019/20. Together with our Canadian team, we are very proud of this. In the US, increased investment in receivables purchases is indicating positive trends. We intend to continue this focus in the current financial year," Witzig adds.
About EOS Group
EOS Group is one of the leading technology-based financial investors and an expert in the processing of overdue receivables. Its core business is the underwriting of unsecured and secured receivables portfolios. With over 40 years of experience and locations in 26 countries, EOS offers smart receivables management services to its 20,000 customers worldwide. The main target sectors are banks, distribution companies, the real estate sector and e-commerce. EOS employs more than 7,500 people and is part of the Otto Group.
Further information about the EOS Group: eos-solutions.com
We ran in EOS KSI
On Friday, 24th of May 2019, our team participated in the business trio run in Bled. It is a traditional event that has been taking place on a idyllic location around Lake Bled for 12 years. Our co-workers were running and relaying rods for good purposes. The collected funds from the registration fee will go for the help of prematurely born children (EINT UKLC).
The EOS KSI team had running trial that took place on 11th of May this year in Ljubljana. With the course where the three runners have to run together all the time and the goal is for the time of the last one to break the target line, we have strengthened the interconnection, solidarity and team spirit. In the end, the time taken by the weakest member is counted, so a better-prepared team member must help, encourage and motivate him.
