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No More Rumors: Is EOS Group Really Selling Its Business in Russia?
A representative from EOS Group has squashed rumors about the company selling its operations in Russia. According to them, it's business as usual. But let's dig deeper into this debt collection powerhouse based in Hamburg.
EOS Group is a global player in the debt collection field, active in over 20 nations. In the Russian market, it has been steadily growing since 2007, holding a significant stake via EOS Holding GmbH (1%) and EOS International Beteiligungs-Verwaltungsgesellschaft mbH (99%). Despite the absence of official rankings, experts deem EOS one of the industry's heavyweights.
The company's business model involves purchasing distressed debts from banks and handling collection activities independently. By the end of 2024, EOS' assets skyrocketed to 22.3 billion rubles—nearly double their value from three years prior. For context, "First Client Bureau" boasted assets of 23.1 billion rubles at the same time, as per their Russian Accounting Standards financial statements.
When the military conflict in Ukraine erupted in February 2022, many foreign banks and businesses pulled out of Russia. However, EOS Group remained tight-lipped about any such decisions. Domestically, EOS Russia halted the acquisition of new troubled debts on the assignment market, continuing to manage existing debts. Despite their extensive portfolio, the lack of new debt purchases has deterred income growth, causing a noticeable decline, as observed with EOS.
Rumors swirled in spring 2024 that EOS Group was seeking a buyer for its Russian business, as reported by RBC. However, with deteriorating exit conditions, these plans may have changed.
EOS' 2024 financials showed a 11.6% drop in revenue to 9.6 billion rubles, with net profit falling by 7% to 4.8 billion rubles. Nevertheless, these figures still surpassed the 2022 levels, hinting at the burgeoning market for bank debt assignment in Russia. In 2024, debts sold to collectors totaled 319.3 billion rubles—a staggering 28.2% increase compared to the previous year, marking a record high.
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- Amidst speculations, EOS Group, a renowned debt collection company active in over 20 countries, has denied selling its business in Russia, maintaining that it continues its operations as usual.
- In Russia, EOS Group holds a significant stake in the market, with EOS Holding GmbH owning 1% and EOS International Beteiligungs-Verwaltungsgesellschaft mbH owning 99%.
- Despite many foreign banks and businesses withdrawing from Russia following the military conflict in Ukraine, EOS Group has remained in the Russian market, though it halted the acquisition of new troubled debts.
- Recently, rumors emerged suggesting that EOS Group was considering selling its Russian business due to deteriorating exit conditions. However, with an increase in bank debt assignment in Russia, the financial health of EOS Group, evident in their 2024 financials, remains robust.
