The following is a summary of the Encore Capital Group, Inc. (ECPG) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Global Q2 portfolio purchases were $279 million, up 2% YOY with record U.S. deployments.

• Q2 collections reached $547 million, a 15% YOY increase, driven by sustained strong portfolio purchasing.

• GAAP net income and EPS for Q2 were $32 million and $1.34 respectively, up 22% and 24% YOY.

• Strong cash generation in Q2 was up 19% YOY, highlighting efficient capital utilization and high returns on portfolio purchases.

Business Progress:

• Record $237 million deployed in U.S. during Q2, reflecting strong market conditions and portfolio returns.

• Anticipated another record year of portfolio purchasing for MCM business in U.S.

• Continued selective portfolio purchasing in Europe due to high fund costs despite improved pricing.

• Maintained disciplined cost management and operational efficiency contributing to growth in earnings and collections.

Opportunities:

• Encore is prioritizing U.S. market for portfolio purchases due to high returns and record levels of supply.

• Anticipate global portfolio purchasing in 2024 to exceed $1.15 billion, reflecting an increase of $75 million from 2023.

Risks:

• Despite improved portfolio pricing in Europe, it still does not consistently reflect the higher cost of capital due to increased interest rates.

More details: Encore Capital Group IR

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