November 28, 2023

The company logo for Cielo is displayed on a screen on the floor of the B3 Brazilian Stock Exchange in Sao Paulo, Brazil, July 25, 2019. REUTERS/Amanda Perobelli

Sign up now for FREE unlimited access to

SAO PAULO, Aug 2 (Reuters) – Brazilian payments processor Cielo SA ( CIEL3.SA ) said on Tuesday its second-quarter net profit more than doubled, beating analysts’ forecasts, helped by proceeds from the sale of a subsidiary.

The company, controlled by lenders Bradesco ( BBDC4.SA ) and Banco do Brasil ( BBAS3.SA ), posted a net profit of 635.3 million reais ($120.38 million), well above the 285.9 million reais it analysts expected in a forecast compiled by Refinitiv.

Cielo’s earnings were boosted by the sale of its stake in US company Merchant e-Solutions Inc, which was completed in April and added 282 million reais to its valuation.

Sign up now for FREE unlimited access to

The total volume of payments processed by the company was 221 billion reais, about a third from last year.

Operating net income, on the other hand, fell 9.7% to 2.54 billion reais, reflecting the loss of revenue from the sale of e-Solutions. Excluding the former subsidiary, revenue increased by 33.7%.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter were 1.18 billion reais, more than doubling from the year-ago period.

Sign up now for FREE unlimited access to

Reporting by Carolina Pulice and Peter Frontini. Editor: Christian Plumb

Our Standards: The Thomson Reuters Trust Principles.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *