brytfmonline

Complete News World

CTT Goes From Losses To Profits 17.2 Million Euros In The Semester - Companies

CTT Goes From Losses To Profits 17.2 Million Euros In The Semester – Companies

CTT ended the first six months of 2021 with a profit of 17.2 million euros, compared to a loss of 2 million euros recorded in the same period the previous year. The company says the growth was “primarily driven by growth in EBIT”.

In a statement sent to the Securities Market Authority this Thursday, the Postal Group revealed that operating income rose 18.2% to €412.8 million, an increase of 63.6 million over the same period in 2020.

The Express & Parcels business maintained its growth trajectory, rising 47.8% to €125.8 million, hitting a “new revenue peak”. This segment benefited from the “strong performance of the Iberian region, as Spain demonstrated the results of the specific strategy”, with a growth rate of 79.5%. In Portugal, business activity grew by 29.6%. Between January and June, Spain accounted for nearly half (45.5%) of Express & Parcels segment revenue, an increase of 8 percentage points over the same period last year. In Portugal and Spain, 35.8 million items were traded, up 59.6% from the first half of 2020. CTT Expresso Espanha reached its break-even EBITDA point in the second quarter, with 1.5 million euros, and 1.3 million euros in the quarter. The result exceeded the company’s expectations. In the second quarter, EBIT for CTT Expresso Espanha also hit breakeven.

The company says its growth strategy remains in Spain. To “enhance capacity and coverage” in the neighboring country, four new operational centers are scheduled through 2022, “so the operation in Spain is poised to accommodate the expected growth in the coming quarters.”

See also  13 thousand euros to “repair” a battery? The company earned 590 euros

According to the Postal Group, “This investment, combined with the growth we have already seen and new business processes in terms of distribution programmes, new partner reward models and renegotiation of existing contracts, has reduced variables and a consequent increase in the profitability of the operation in Spain.”

Scratch Cards Boost Retail

In contrast, Corio’s income increased 6.6% to €216.1 million, a performance that the company led by Joao Pinto classifies as “strong in light of the economic context and the secular orientation of the postal services”.

The performance resulted from “the increase in transactional mail revenue (+7.1%), whose revenue benefited from the increase in the contribution of higher value-added products, which also have a higher unit value, with less reliance on postal mail,” whose weight 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 Solutions reported a decline of 14.3% due to the “significant decrease in PPE sales prices and higher sales volume achieved” in the second quarter of last year.

In the financial services and retail segment, operating income rose 10.3% to €23.7 million. Income from financial services decreased by 2.2%, while payment services for CTT increased by 11.9%. Retail products and services rose 50.8%, mainly due to the toy merchandising, which was up 125.5%, “driven by the introduction of charge card sale in the fourth quarter of 2020 and the gradual expansion of its sales to the entire retail network of stores.”

See also  A man arrested in Hong Kong with 256 Intel processors strapped to his body

CTT Bank with a moratorium of 725

Banco CTT ended the semester with an increase in operating income of 19% to €45.7 million. Net interest income increased by 20.4% to €25.7 million

The company highlights the partnership signed with Sonae Financial Services in April, with which Banco CTT became the sole creditor
Regarding the credit portfolio of Cartão Universo. The company generated revenue of €2.6 million in the second quarter, and the net balance sheet size was €185.5 million.

Mortgage loan production fell by 18.5% to 69.3 million euros, “reflecting the effects of the economic downturn caused by the context of the pandemic.”

Customer deposits increased by 12.9% compared to December 2020 to reach 1906.7 million euros, and 26,000 new accounts were created, bringing the new total to 543 thousand.

According to the company, as of June 30, 2021, there were 725 non-performing loans, equivalent to 40.1 million euros, 30.8 million of which relate to mortgage loans. The amount represents 3.3% of the total customer loan portfolio. “Of the total amount of deferrals completed, there are about 2.9 million euros with a delay of more than 30 days, which represents about 11% of the total private defaults ending on September 30, 2020,” the company discloses.

CTT Expects Franchise Contract ‘On Time’

Operating expenses increased by 10.9% to €381.8 million. Employee expenses increased 4.2%. On June 30, CTT had 246 more workers than the same period a year earlier, for a total of 12,261.

Provisions for impairments and provisions were reduced by 47.7% “as a result of the revision of the credit risk matrices and the improvement in the economic situation, bearing in mind that the same period was severely affected by the epidemic and uncertainty, especially with regard to subjective credit.”

See also  Novo Banco's large debtor says he “has no private assets” but admits to owning offshore companies

Investment rose 7.6% to €11.7 million in the first half, focusing on the Express and Parcels region.

The company anticipates that 2021 “continues to be characterized by the spread of the COVID-19 pandemic,” and the “high uncertainty context,” which would still drive CTT to reach 60 million EBIT above 2020.

The mail group also refers to the process related to the new franchise contract. “We reaffirm our confidence that it will be formalized during the applicable extension period. This will improve CTT’s ability to meet its universal service commitments in a more sustainable framework.”