Operational review
Established markets
Customer numbers 321,000
+0.6%
Average net receivables
£89.9 million
+13.8%
Impairment as a % of revenue
22.8%
Hungary
| 2008 £m |
2007 £m |
Change £m |
Change % |
Change at CER % |
|
|---|---|---|---|---|---|
| Customer numbers (000s) | 321 | 319 | 2 | 0.6 | 0.6 |
| Credit issued | 150.1 | 130.0 | 20.1 | 15.5 | (0.6) |
| Average net receivables | 89.9 | 68.1 | 21.8 | 32.0 | 13.8 |
| Revenue | 113.1 | 87.1 | 26.0 | 29.9 | 11.6 |
| Impairment | (25.8) | (17.4) | (8.4) | (48.3) | (28.1) |
| Revenue less impairment | 87.3 | 69.7 | 17.6 | 25.3 | 7.5 |
Credit controls were tightened in Hungary in July, earlier than the other Central European markets. As a result, growth was constrained with customer numbers growing by 0.6% to 321,000 and credit issued reducing by 0.6% to £150.1 million.
Strong growth in the later part of 2007 led to an increase in average net receivables of 13.8% and this resulted in an 11.6% increase in revenue.
Credit quality remained good and impairment as a percentage of revenue was 22.8% (2007: 20.0%), in line with the figure reported at June 2008.
Revenue less impairment increased by 7.5% to £87.3 million.