Q3 2024 CTT Correios de Portugal SA Earnings Call Transcript
Key Points
- CTT-Correios de Portugal SA (CTTOF) reported a 17.3% growth in revenues and a 28.6% growth in EBITDA, excluding financial services.
- The express and parcels segment achieved record volumes, with a 46% year-on-year growth, nearing 100 million parcels distributed in the first nine months.
- The company improved its EBITDA margin to 8.7% in the quarter, with a positive outlook for the fourth quarter.
- The bank segment saw a 46% year-on-year growth in deposits, significantly outperforming the market growth of 8%.
- CTT-Correios de Portugal SA (CTTOF) expects a strong fourth quarter with increased working days and recovery of mail backlog from state agencies.
- Mail traffic fell by 7.5% compared to the same period last year, although offset by a 10.1% increase in average price per item.
- Financial services experienced a 51% year-on-year decline in volumes and a 27.2% decline in revenues.
- Operating costs increased by 15.3%, with significant wage inflation impacting the mail segment.
- The company's cash flow was heavily affected by a negative evolution of working capital and a EUR7.3 million impact from VAT recovery rules.
- Net profits declined by 16.2%, and recurring EBITDA was flat due to investments in fleet electrification and capacity.
Good morning and welcome to CTT'S nine month 2024 results conference call.
(Operator Instructions) I will now turn the call over to Mister Zambian to CEO.
Good morning, everyone. Welcome to our third quarter Results presentation. Q3 was a transition quarter towards what we believe is going to be a great final quarter since financial service is now normalizing and express in person will keep beating all-time records.
So if you, if we concentrate on I'm with slide number four, if we look at the charts on the left and if we set aside financial services, we've observed in the quarter, 17.3 growth on revenues that then is amplified to a 28.6 growth on EBITDA, looking into more detail on the right hand side to each business area and starting with the logistics bucket, we see express and parcels achieving record volumes and since we have during this summer volumes above last year's peak season, and then this very high growth of 46% year
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