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Consolidated Results‌‌

1st Half 2017

TABLE OF CONTENTS 1ST HALF 2017 CONSOLIDATED RESULTS4 HIGHLIGHTS 4
  1. ECONOMIC AND FINANCIAL ANALYSIS 5
  2. OTHER HIGHLIGHTS 17
  3. FUTURE PERSPECTIVES 20
CTT - CORREIOS DE PORTUGAL, S.A.- PUBLIC COMPANY 1ST HALF 2017 CONSOLIDATED RESULTS
  • Recurring Revenues increase by 0.8% following the 1.3% growth of the Sales and Services Rendered of the Express & Parcels and the Financial Services business units, as well as the €1.1m Net Interest Income of Banco CTT. The positive evolution of the revenues despite the decrease of other operating income was mostly due to the expiration of the agreement with Altice which had a negative impact of €5m in the semester. Excluding this impact, revenues grew by 2.3%.

  • Addressed mail volumes decrease by 5.6%, influenced by one less working day in the 2nd quarter than in the same period of the previous year, particularly during the month of April which had less 2 working days due to Easter holidays, which in the year of 2016 occurred in March. The decrease in volumes was mitigated by the price increase that took effect on 4 April 2017 and by the positive evolution of the product mix (registered mail and international mail volumes growth) that led to a 5.5% increase in average revenues per item in the semester and mitigated the effect of the volumes decline in the revenues.

  • Express & Parcels volumes grow by 13.1% in Portugal (6.8% contributed by the acquisition of Transporta and 6.3% by the existing businesses) and 17.1% in Spain with revenues growth of 6.2% (Portugal) and 11.4% (Spain), and strong growth of the parcels originated by e-commerce.

  • Banco CTT launches mortgage loans and is authorised to offer insurance products, being present countrywide in 203 CTT post offices. It opened more than 147 thousand current accounts, earning the trust of over 185 thousand clients. The launch of mortgage loans concludes the launch stage of Banco CTT, completing the basic offer of the bank to its clients.

  • Recurring EBITDA and Net profit decrease by 15.8% (-€9.8m) and 22.8% (-€7.8m), respectively, mainly as a consequence of the loss of income from Altice (€5m), the greater-than-estimated drop of addressed mail volumes, the acquisition of Transporta, the integration and restructuring of which are still underway and contributing negatively to the results, and of the evolution of Banco CTT which still has a negative impact on the consolidated accounts.

  • The semester results illustrate the strong investment in the company's growth levers, Express & Parcels and Financial Services/Banco CTT, as a key component of the strategy in place to achieve growth of the consolidated revenues of CTT.

CTT – Correios de Portugal SA published this content on 31 July 2017 and is solely responsible for the information contained herein.
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