Revenue during the quarter dropped 8.15 percent to $206.56 million from $224.88 million in the previous year period. Total expenses were 74.22 percent of quarterly revenues, up from 68.48 percent for the same period last year. That has resulted in a contraction of 574 basis points in operating margin to 25.78 percent.

Operating income for the quarter was $53.26 million, compared with $70.89 million in the previous year period.

"PRAs cash collections in the first quarter exceeded our expectations while cash operating expenses remained controlled. We are pleased with the progress made in increasing our collector workforce in the U.S. to the appropriate level. Both our existing collector workforce and our new hires continue to impress us with their work ethic and commitment to compliance," said Steve Fredrickson, chairman and chief executive officer, PRA Group. "Our cash efficiency ratio, measured as cash receipts less operating expenses divided by cash receipts, of 61% continues to compare well with previous years even with the impact of our current regulatory environment with its greater costs and negative impact on revenue. We are also pleased with our first quarter investment, particularly in the U.S., where we see gradually improving volumes and pricing."