CTT back in profit in the first half of the year
CTT significantly improved its net result for the first half of the year (H1), going from a loss of €2 million to a net profit of €17.2 million by June 2021.
CTT’s net profit soared in the first half of the year, from losses of €2 million in the first half of 2020 to profits of €17.2 million in the first six months of 2021. The group recorded widespread growth in the various revenue categories, especially that of the Express and Parcels business.
In a statement sent to CMVM, the company explains that this improvement “was driven mainly by the increase in recurring EBITT”. But the net result in H1 also includes non-recurring effects for an amount of €2.3 million.
CTT’s EBITDA, meanwhile, grew 60.6% in the first half of the year to €57.3 million.
The company’s revenues grew 18.2% to €412.8 million, representing an increase of €63.6 million. Mail, the group’s core business, grew 6.6% to €216.1 million, which is explained by higher transactional mail revenues.
However, it was the revenues from Express & Parcels that grew the most in the first six months of the year. It increased 47.8% between the first half of 2020 and the first half of 2021, to €125.8 million. The company points out that this segment “continues to post record revenues in H1, driven by the strong performance of the Iberian region”, especially Spain, which already accounts for 45.5% of this segment’s revenues.
The CTT’s first half results “are good” and “in line with the revenue and profitability growth path”, CTT’s chief executive João Bento told Lusa, before adding that the company continued to “contribute to the growth of e-commerce in Portugal.”
As for Banco CTT, operating income increased 19%, to €45.7 million due to the positive contribution of the financial margin growth, which reached 25.7 million, 20.4% more than in the first half of 2020.
The banking institution earned €2 million (+12.4%) in interest from consumer credit (auto loans and leasing production) in the first half of the year, producing a credit portfolio net of impairments of €602.3 million. Interest from mortgage loans remained in line with the previous year, growing by €0.02 million (+0.8%), with a €564 million mortgage loan portfolio net of impairments (+7.5% compared to December 2020).
Finally, as regards financial and retail services, CTT generated an operating income of €23.7 million, a 10.3% increase compared to the same period last year.
On the expense side, CTT’s operating costs totalled €381.8 million in H1, an increase of €37.5 million (+10.9% YoY). Expenses with supplies and technical services were the main pressure.
As of June 30, 2021, CTT had a net debt of €61.7 million. It shrunk by €9.8 million compared to December 31, 2020.
New concession arrives before the end of the year, CTT believes
In the statement, CTT shows confidence that the new universal postal service concession contract will be successfully negotiated with the government before the end of the year.
“Given the recent progress on the unfolding of the process leading to the new concession contract, we reaffirm confidence that it will be formalized within the term of the current extension,” the statement read.
