CTT ended the first six months of 2021 with a profit of € 17.2 million, which is comparable to a € 2 million loss recorded in the same period last year. The growth was “primarily driven by growth in current EBIT,” the company said in a statement.
In a statement sent to the Securities Market Commission this Thursday, the postal group shows that operating income rose 18.2% to € 412.8 million, up 63.6 million from the same period in 2020. …
The Express & Parcels business maintained its growth path, increasing 47.8% to € 125.8 million, reaching “new revenue peaks”. This segment benefited from “the strong performance of the Iberian region, where Spain performed well in the stated strategy,” with 79.5% growth. In Portugal, business grew by 29.6%. From January to June, Spain accounted for almost half (45.5%) of the revenues of the Express and Parcels segment, up 8 percentage points from the same period last year. In Portugal and Spain, 35.8 million transactions were concluded, which is 59.6% more than in the first half of 2020. CTT Expresso Espanha broke even on EBITDA in the second quarter with € 1.5 million and € 1.3 million per semester. The result exceeded the company’s forecasts. CTT Expresso Espanha’s recurring EBIT also broke even in the second quarter.
The company says its growth strategy remains in Spain. “To increase bandwidth and coverage” in the neighboring country, four new operating centers are planned until 2022, “therefore, work in Spain is ready for the expected growth in the coming quarters.”
According to the postal group, “These investments, together with the already observed growth and new business processes in terms of software distribution, new partner reward models and renegotiation of existing contracts, reduced the variable and, as a result, increased the company’s profitability. operation in Spain “.
Scratch cards drive retail
In turn, Correio’s profit increased by 6.6% to 216.1 million euros, which the company, headed by João Bento, classifies as “stable in light of the economic context and the secular trend in the postal services”.
The result was “growth in transactional mail revenues (+ 7.1%), which benefited from an increased contribution of higher value-added products that also have higher unit costs and less dependence on regular mail”, which share in revenue rose from 37% to 34%, justifies the company. The weight of registered and incoming international mail increased from 34% to 37%, which also contributed to the improvement.
Business decisions were down 14.3% due to “significant drop in PPE selling prices and high sales volumes achieved” in the second quarter of last year.
In the financial services and retail segment, operating profit increased by 10.3% to 23.7 million euros. Financial services revenues were down 2.2% while CTT payment services were up 11.9%. Retail goods and services grew by 50.8%, mainly due to the gaming business, which grew by 125.5%, “thanks to the introduction of scratch cards in 4Q20 and the gradual expansion of sales across the entire retail network. The shops”.
CTT Bank with moratorium 725
Banco CTT ended the semester with a 19% increase in operating profit to € 45.7 million. Net interest income increased by 20.4% to € 25.7 million
The company underlines the partnership it signed with Sonae Financial Services in April, with which Banco CTT became the sole lender.
in relation to the loan portfolio of Cartão Universo. The company had revenues in the second quarter of 2.6 million euros and a net book value of 185.5 million.
The production of mortgage loans fell 18.5% to 69.3 million euros, “reflecting the impact of the economic downturn caused by the context of the pandemic.”
Customer deposits increased by 12.9% compared to December 2020 and amounted to 1,906.7 million euros, and 26 thousand new accounts were created, the total number of which is 543 thousand.
According to the company, as of June 30, 2021, 725 loans were overdue, which corresponds to 40.1 million euros, of which 30.8 million are mortgage loans. This amount is 3.3% of the total aggregate loan portfolio of clients. “Of the total number of moratoriums implemented, about 2.9 million euros with delays of more than 30 days, which is about 11% of the total number of private defaults that ended on September 30, 2020,” the company said.
CTT expects concession agreement “on time”
Operating expenses rose 10.9% to EUR 381.8 million. Staff costs increased by 4.2%. As of June 30, CTT employed 246 more people than in the same period last year, with a total of 12,261 people.
Impairment and provisions were reduced by 47.7% “as a result of a revised credit risk matrices and an improved economic environment, given that the same period was hit hard by the pandemic and uncertainty, especially in terms of self-sufficiency.”
In the first half of the year, investments increased by 7.6% to 11.7 million euros, with an emphasis on express delivery and parcels.
The company expects 2021 to “continue to be marked by the unfolding of the COVID-19 pandemic” and a “context of high uncertainty,” which should still result in CTT reaching 60 million EBIT over 2020.
The postal group also refers to the process associated with the new concession agreement. “We reaffirm our confidence that it will be formalized during the renewal period. This should improve CTT’s ability to meet its universal service commitment in a more sustainable framework. ”
