PRA Group, Inc. reported significant financial growth in its 2024 fiscal year, with total revenues reaching $1.1 billion, a 39.7% increase from $786.3 million in 2023. The company's net income attributable to PRA Group, Inc. was $70.6 million, translating to diluted earnings per share of $1.79, compared to a net loss of $83.5 million in the previous year. This turnaround was driven by a 12.5% increase in cash collections, totaling $1.9 billion, and a 22% rise in portfolio purchases, which amounted to $1.4 billion.
The company experienced notable operational changes, including the consolidation of its U.S. collection sites from six to three, which is expected to enhance efficiency. Additionally, PRA Group expanded its use of offshore collection agencies, with over 30% of its U.S. collector base now comprising offshore collectors. The U.S. legal collections channel saw a significant boost, with collections increasing by 42.4% to $376 million, attributed to improved processes and operational initiatives.
PRA Group's estimated remaining collections (ERC) stood at $7.5 billion at year-end, reflecting a 16.6% increase from the previous year. The company reported a strong performance in both its Core and Insolvency portfolios, with U.S. portfolio purchases rising by 40.2% to $795.8 million. In Europe, portfolio purchases increased by 14.4% to $508.3 million, supported by robust seller relationships and a diverse geographic portfolio.
Looking ahead, PRA Group anticipates continued strong portfolio supply in 2025, driven by rising credit card balances and elevated charge-off rates. The company also plans to finalize the sale of its remaining 11.7% interest in RCB Investimentos S.A., which is expected to yield an estimated net after-tax gain of approximately $25 million. Overall, PRA Group's strategic initiatives and operational enhancements position it favorably for sustained growth in the upcoming year.
About PRA GROUP INC
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