INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 25
CTT - CORREIOS DE PORTUGAL, S.A.- PUBLIC COMPANY 9 MONTHS 2017 CONSOLIDATED RESULTS
Recurring Revenues increase by 0.2% that reflects some substitution of revenues from Mail and Financial Services due to growth of the Express & Parcels and Banco CTT business units, which puts pressure on the cost structure. Excluding the revenues of the agreement with Altice recorded in the same period of the previous year (€7.5m), recurring revenues grew by 1.6%.
Addressed mail volumes decrease by 6.1% (7.2% in the 3rd quarter) at a faster-than-anticipated pace and worse than the expected range, but mitigated in terms of revenues by the price increase and the positive evolution of the product mix (registered mail and international mail growth) that led to a 5.5% increase in average revenue.
Express & Parcels volumes grow by 18.4% in Portugal and 24.6% in Spain with revenues growth of 10.2% and 17.4%, respectively, but with higher-than-expected incremental costs (limited use of the installed capacity).
Banco CTT increased its focus on mortgage loans with a production of €24.3m in the 3rd quarter and keeps growing in terms of customers (more than 240 thousand), who by the end of September had opened more than 190 thousand current accounts. As of today more than 200 thousand accounts have been opened.
Acquisition of Transporta has put pressure on results with an impact on EBITDA of circa -€2.0m (-€0.7m in recurring terms), given the restructuring and integration process underway.
Recurring EBITDA and Net profit decrease by 25.1% (-€22.9m) and 35.9% (-€17.5m), respectively, as a consequence of the loss of revenues from Altice, the sharp drop of mail volumes in the last two quarters and the costs associated with the process of adjustment of the networks to the accelerated growth of Banco CTT and the Express & Parcels business.
€ Million
Consolidated Results
Reported
Recurring (*)
9M17 9M16
∆
9M17 9M16
∆
Revenues
518.0 518.8
-0.2%
518.0 517.1
0.2%
Salesand services rendered
501.3 497.3
0.8%
501.3 497.3
0.8%
Net interest income
2.1 -0.03
»
2.1 -0.03
»
Other operating income
14.6 21.6
-32.4%
14.6 19.9
-26.5%
Operating costs
458.7
436.0
5.2%
449.8
426.1
5.6%
EBITDA
59.3
82.9
-28.5%
68.1
91.0
-25.1%
Amortisation, depreciation, provisions and impairments
22.9
12.5
83.4%
21.6
19.5
10.9%
EBIT
36.3
70.4
-48.4%
46.5
71.4
-34.9%
Financial income, net
-3.7
-4.2
11.5%
-3.7
-4.2
11.5%
Gains / (losses) in associated companies
-
0.2
-
-
0.2
-
Earnings before taxes (EBT)
32.6
66.4
-50.9%
42.8
67.5
-36.6%
Income tax for the period
13.2
20.6
-35.8%
11.7
19.0
-38.3%
Gains/(losses) attributable to non-controlling interests
-0.1
-0.2
-42.3%
-0.1
-0.2
-42.3%
Net profit attributable to equity holders
19.5
46.0
-57.6%
31.2
48.7
-35.9%
(*) Recurring net profit excludes non-recurring revenues and costs and considers a nominal tax rate.
CTT – Correios de Portugal SA published this content on 31 October 2017 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 31 October 2017 18:27:02 UTC.
CTT-Correios de Portugal, S.A. is the Portuguese leader in postal services provision. Net sales break down by activity as follows:
- mail collection and delivery (50.4%): letters, postcards, ads, advertising documents, newspapers, etc.;
- express and parcels transportation and delivery services (40.2%): activity ensured in Portugal, Spain and Mozambique;
- sale of financial products and services (7.2%): public debt certificates, postal saving products, insurance and postal money orders;
- banking and payment services (2.2%): savings accounts, consumer credit (auto loans and credit cards), mortgage loans, off-balance sheet savings. The group also provides payment solutions (Payshop) allowing paying for purchases through the Internet and via certified agents (kiosks, tobacconists, supermarkets, etc.).
Portugal accounts for 69% of net sales.
CTT-CORREIOS DE PORTUGAL, S.A. 
