CTT first-quarter profit falls 18% despite revenue growth

CTT reported a 17.6% year-on-year fall in first-quarter net profit to €4.5 million, as temporary disruptions including storms in Portugal and the crisis in the Middle East outweighed strong revenue growth.

Total revenue rose 14.1% to €329.4 million, led by e-commerce solutions, where operating revenue increased 10.2% to €164.2 million, or 34.8% excluding the integration of Spain’s Cacesa. CTT said recurring EBIT fell 24% to €15.3 million, reflecting what it described as “temporary impacts” on profitability.

In mail and services, revenue fell 3.4% to €128.7 million as lower traffic and weaker sales of Portuguese public debt products more than offset higher revenue per item and continued growth in business solutions and payments. The company said adverse weather conditions hurt the placement of savings certificates, while comparison with the first quarter of 2025 was also demanding.

CTT said the 2025 peak season in e-commerce was unusually concentrated around Christmas, requiring extra operational effort that extended into January. In the mail business, it also reported unusually high operating costs to maintain service levels, particularly in central Portugal, the region most affected by the succession of storms.

Banco CTT posted revenue of €36.5 million, up 8.8%, supported by customer growth and higher business volumes.

Originally published at Eco.pt