Australia's Credit Corp slides most in nearly 6 months as profit falls

Credit

01/02/2023 24:01

** Shares of credit management services firm Credit Corp
Group  CCP.AX  fall as much as 9.3% to A$19.64, their worst
intraday loss since Aug. 2, 2022
    ** CCP top loser on Australia's benchmark S&P/ASX 200 index
 .AXJO  
    ** Says half yearly profit attributable fell 37% to A$31.8
million ($22.42 million), missing analysts' estimates 
    ** Declares interim dividend of 23 Australian cents per
share, lower than the 38 Australian cents per share a year ago
    ** Attributes poor performance to marketing expenses from
growth of loan book, provisioning for losses, among others 
    ** However, brokerage Canaccord Genuity notes lending
volumes were strong — during H1, consumer loan book grew 32% to
A$331 million 
    ** CCP maintains full-year earnings guidance of A$90 million
to A$97 million 
    ** Stock hits lowest level since Jan. 11
    ** CCP up 15.1% YTD, as of last close 
($1 = 1.4186 Australian dollars)
 (Reporting by Harshita Swaminathan)
 ((Harshita.Swaminathan@thomsonreuters.com))