Dynamic growth of ECC Capital Group in second quarter of 2018: 400% higher net profit!
Capital Group of the European Center for Compensation S.A. (ECC), leader in the compensation market in Central and Eastern Europe, published the financial report for the first half of 2018. The Company achieved very good results, especially in the second quarter of this year. Net profit increased by over 400 percent. up to 3.1 million PLN. and revenues increased by more than 23 percent. and amounted to 23.6 million PLN. In the first six months of 2018, ECC Capital Group generated PLN 46.4 million PLN from sales revenues (increase by 9.3 percent) and over PLN 11.2 million. EBITDA (a 16.4% increase).
“The first half-year, and especially the second quarter of this year, clearly shows the excellent effects of optimization, which resulted in over 30 percent reduction of costs. This process continues and will bring even better results. We have a portfolio of case files worth 675 million PLN. These are the effects of implementing a new strategy and offering new products. The dynamic development of our Romanian company and the EuCOvipcar project, which offers replacement cars from the OC policy, also greatly influences the results of the ECC Capital Group”, said Krzysztof Lewandowski, president of the ECC Capital Group.
The value of the cases of the Romanian company Centrul European De Despagubiri SRL belonging to the EuCO Capital Group as of June 30, 2018 amounted to over 260 million PLN. EuCO’s sales on foreign markets (mainly in Romania) totaled over 11.4 million PLN in the first half of 2018. Compared to PLN 7.7 million PLN in the first half of 2017, we saw an increase by almost 50 percent. EBITDA increased by 16 percent to over 3.8 million PLN.
“We can say boldly that we’ve achieved a success in Romania. In the first half of 2018, the company’s revenues doubled, reaching PLN 25 million PLN, compared to PLN 11 million in the first half of last year. This is an excellent result, which in our opinion gives the prospect of further dynamic growth in the future. Romania is a large country in Central and Eastern Europe – second largest after Poland – in which we are the undisputed market leaders. Our network of associates and agents operates throughout the country. The highly damaged road network and the highest accident statistics in Europe show that the demand for our support is very high – we see this in the growing number and value of our cases. In the future, we are also thinking about introducing products on this market, that we have successfully developed in Poland” emphasizes Michał Karewicz, the manager of the Centrul European De Despagubiri SRL team.
The company offering victims a comprehensive replacement car service from the OC policy, which changed its name from EuCOcar to EuCOvipcar at the beginning of July, is also seeing a dynamic growth.
In the first half of 2018, the fleet of over 200 vehicles in the colors of EuCOvipcar generated 7.1 million PLN of revenue and over 3.8 million PLN EBITDA.
The ECC Capital Group also sees further development potential for the Polish market. Insurance companies systematically increase provisions for compensation payments (in the first quarter of 2018 the value was already at over 62 billion PLN, which means a 10% increase compared to the first quarter of 2017) – this shows that insurers expect an increase in the number of cases.
Link to reports (in polish language): https://euco.pl/strefa-inwestora/raporty/okresowe/raporty-okresowe-rok-2018/