Australia's Credit Corp slumps on weak forecast, results

Credit

01/08/2023 02:48

Aug 1 (Reuters) - Shares of Australia's Credit Corp
Group  CCP.AX  fell nearly 16% on Tuesday, as the company
forecast a lower profit for the 2024 financial year after a
decline in 2023.
    The credit management services firm said it expected net
profit after tax (NPAT) to come in the range of A$90 million
($60.44 million) to A$100 million in fiscal year 2024.
    Profit attributable in the year ended June 30 fell 9.4% to
A$91.3 million from A$100.7 million in the previous year.
    Shares of the company fell as much as 15.9% and were on
track for their worst day since March 23, 2020, if losses held. 
    While lending segment earnings grew strongly, the impact was
offset by continued run-off in the core Australia-New Zealand
debt buying business and costs arising from increased U.S.
resourcing, the company said in a statement.
    Credit Corp Group also sees reduced purchasing to further
hurt earnings from its Australia and New Zealand debt buying
segment for another year.
    It will pay a final dividend of 47 cents per share for the
2023 financial year. 
($1 = 1.4890 Australian dollars)

 

 (Reporting by Nausheen Thusoo in Bengaluru; Editing by
Subhranshu Sahu)
 ((Nausheen.Thusoo@thomsonreuters.com;))