Q3 2025 CTT Correios de Portugal SA Earnings Call Transcript
Key Points
- CTT-Correios de Portugal SA (CTTOF) reported a 6% revenue growth and a 12% increase in recurring EBIT, showcasing resilient organic growth.
- The integration of Cacesa significantly boosted e-commerce solutions, contributing to a 17.2% revenue growth and a 38.1% increase in pro forma EBIT.
- Mail & Other services showed signs of recovery with a reduced decline in address mail volumes, down only 4.3% compared to 8.5% earlier in the year.
- Financial services and retail segments demonstrated strong performance, with public debt placements up 167% and insurance offerings showing robust growth.
- Banco CTT experienced a strong growth in business volumes, with a 16.4% increase in the loan book and a 25.7% rise in off-balance savings.
- E-commerce volumes were impacted by external factors such as a typhoon in South Asia and border issues between Poland and Belarus, causing delays.
- Mail segment revenues declined by 2.3%, with traditional mail volumes continuing to decrease.
- The company faced a negative free cash flow of EUR 6.4 million due to strong working capital investment.
- There was a compression in net interest margins for Banco CTT, despite growth in business volumes.
- The company incurred specific costs related to restructuring and strategic projects, impacting overall profitability.
Good morning, and welcome to CTT's nine Months '25 Results Conference Call. This event is hosted by Mr. João Bento, CEO of CTT; by Mr. Guy Pacheco, CFO of CTT; and by Mr. João Sousa, CCO of CTT. Please note that this conference call is being recorded. (Operator Instructions)
I'll now turn the call over to Mr. João Bento, CEO.
Good morning, everyone. Welcome to our third quarter results presentation. I would invite you to follow us through the presentation that has been distributed yesterday evening.
So, if we move to the first slide, Slide 4. We have a plot of the -- a bridge of the revenue and EBIT in the quarter, with our, we'd call resilient organic growth; revenues growing 6%; recurring EBIT doubling that, 12%, with positive contributions from all the business lines in terms of revenues. This 6.1% are, in fact, 17.2%, taking into account the contribution of Cacesa. And on EBIT, the pro forma growth of 12.3% is in fact
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