Softbank-backed doValue ups order intake guidance despite Q1 loss

(Reuters) - Italy's biggest debt recovery firm doValue on Thursday raised its guidance for new contract intake in Southern Europe for 2023-2024 in spite of posting a net loss in the first quarter.

The Verona-based bad loan manager said it now expects new potential contracts to recoup bad loans in Southern Europe to reach 58 billion euros ($63.85 billion) for the next two years, up from a previous forecast of 52 billion euros.

doValue, which was spun off from UniCredit and has Softbank Group and Bain Capital Credit as its main shareholders, forecast its order intake to grow further in the coming quarters driven by a likely increase in sour loans due to stress factors such as inflation and higher rates.

However, the company posted a net loss of 2.7 million euros in the first quarter, which compared with a profit of 8.9 million a year earlier, as the result was impacted by an increase in provisions for risk and charges as well as lower core profits.

($1 = 0.9084 euros)

(Reporting by Carlo Giovanni Boffa, editing by Federico Maccioni)