Encore Capital Group Inc., a San Diego-based company that buys and sells credit card debt, reported revenues of $272 million in the first quarter of the year, about 6 percent lower than a year ago when the company earned $289 million.
The company attributed the difference to currency effects and the continued impact of an allowance charge from the third quarter of 2016.
Ken Vecchione, president and chief executive officer, said trends in the United States bode well for the company. (Vecchione is leaving the company in June to become president of Western Alliance Bancorp. Ashish Masih, who heads Encore subsidiary Midland Credit Management, has been tapped to succeed him.)
“The U.S. market for charged off receivables continues to improve as growing supply and lower prices, along with improved liquidations, contribute to increasingly favorable returns,” he said in a statement.
In the first three months of the year Encore had a “strong deployment quarter” in Europe, continues to prepare for a potential initial public offering for one of its subsidiaries, Cabot Credit Management, and recently began buying debt in India through its newly launched arm in that country, Encore Asset Reconstruction Co., the company said.