3Q23
Results
PagSeguro Digital Ltd.
Unaudited Condensed Consolidated
Interim Financial Statements
As of September 30, 2023 and for the three and nine-month periods ended September 30, 2023 and 2022.
1
PagSeguro Digital Ltd.
Unaudited condensed consolidated interim financial statements
As of September 30, 2023 and for the three and nine-month periods ended September 30, 2023 and 2022
Contents
Unaudited condensed consolidated interim financial statements
Unaudited condensed consolidated interim balance sheet………………………………………………… 3
Unaudited condensed consolidated interim statements of income………………………………………...5
Unaudited condensed consolidated interim statements of comprehensive income……………………...6
Unaudited condensed consolidated interim statement of changes in equity……………………………...7
Unaudited condensed consolidated interim statement of cash flows……………………………………... 8
Notes to the unaudited consolidated interim financial statements………………………………………….9
2
PagSeguro Digital Ltd.
Unaudited condensed consolidated interim balance sheet As of September 30, 2023 and 2022
(All amounts in thousands of reais)
Note | September 30, 2023 | December 31, 2022 | |||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | 5 | 1,974,618 | 1,829,097 | ||
Financial investments | 6 | 1,078,319 | 1,103,299 | ||
Accounts receivable | 7 | 37,521,292 | 36,248,589 | ||
Receivables from related parties | 9 | 4,399 | - | ||
Inventories | 26,195 | 13,281 | |||
Tax Receivable | 8 | 379,141 | 410,801 | ||
Other receivables | 162,896 | 162,011 | |||
Total current assets | 41,146,860 | 39,767,078 | |||
Non-current assets | |||||
Accounts receivable | 7 | 1,000,115 | 745,546 | ||
Receivables from related parties | 9 | 28,024 | - | ||
Judicial deposits | 49,634 | 44,855 | |||
Deferred income tax and social contribution | 19 | 101,541 | 99,411 | ||
Other receivables | 38,770 | 18,509 | |||
Investment | - | 1,651 | |||
Property and equipment | 11 | 2,478,114 | 2,493,499 | ||
Intangible assets | 12 | 2,483,927 | 2,158,773 | ||
Total non-current assets | 6,180,125 | 5,562,244 | |||
Total assets | 47,326,985 | 45,329,322 | |||
The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.
3
PagSeguro Digital Ltd.
Unaudited condensed consolidated interim balance sheet As of September 30, 2023 and 2022
(All amounts in thousands of reais)
Note | September 30, 2023 | December 31, 2022 | |||
Liabilities and equity | |||||
Current Liabilities | |||||
Payables to third parties | 13 | 18,706,627 | 17,988,139 | ||
Deposits | 14 | 8,577,445 | 10,100,599 | ||
Borrowings | 18 | 192,778 | - | ||
Derivative financial instruments | 26 | 28,091 | 22,289 | ||
Trade payables | 439,359 | 449,102 | |||
Payables to related parties | 9 | 78,359 | 593,906 | ||
Salaries and social security charges | 15 | 333,847 | 292,778 | ||
Taxes and contributions | 16 | 82,922 | 89,779 | ||
Provision for contingencies | 17 | 70,163 | 46,233 | ||
Deferred revenue | 125,801 | 126,042 | |||
Other liabilities | 30,027 | 31,484 | |||
Total current liabilities | 28,665,419 | 29,740,351 | |||
Non-current liabilities | |||||
Payables to third parties | 13 | 159,438 | 84,759 | ||
Deposits | 14 | 3,337,023 | 1,894,689 | ||
Payables to related parties | 9 | 284,082 | - | ||
Deferred income tax and social contribution | 19 | 1,755,429 | 1,564,228 | ||
Provision for contingencies | 17 | 6,314 | 14,370 | ||
Deferred revenue | 18,074 | 17,486 | |||
Other liabilities | 232,999 | 171,313 | |||
Total non-current liabilities | 5,793,359 | 3,746,845 | |||
Total liabilities | 34,458,778 | 33,487,196 | |||
Equity | |||||
Share capital | 20 | 26 | 26 | ||
Treasury shares | 20 | (609,824) | (475,354) | ||
Capital reserve | 20 | 6,097,391 | 6,102,573 | ||
Retained earnings | 20 | 7,403,056 | 6,237,392 | ||
Equity valuation adjustments | 20 | (22,372) | (22,372) | ||
Other comprehensive income | 20 | (70) | (139) | ||
Total equity | 12,868,207 | 11,842,126 | |||
Total liabilities and equity | 47,326,985 | 45,329,322 | |||
The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.
4
PagSeguro Digital Ltd.
Unaudited condensed consolidated interim statements of income
For the three and nine-month periods ended September 30, 2023 and 2022 (All amounts in thousands of reais unless otherwise stated)
Three-month period | Nine-month period | |||||||||
September 30, | September 30, | September 30, | September 30, | |||||||
Note | 2023 | 2022 | 2023 | 2022 | ||||||
Revenue from transaction activities and other | 22 | |||||||||
services | 2,269,288 | 2,292,079 | 6,586,313 | 6,602,349 | ||||||
Financial income | 22 | 1,691,273 | 1,697,222 | 4,820,449 | 4,638,118 | |||||
Other financial income | 22 | 65,585 | 46,126 | 195,028 | 132,469 | |||||
Total revenue and income | 4,026,146 | 4,035,427 | 11,601,790 | 11,372,936 | ||||||
Cost of sales and services | 23 | (2,033,309) | (1,862,164) | (5,888,679) | (5,501,843) | |||||
Selling expenses | 23 | (378,241) | (530,840) | (1,017,591) | (1,510,591) | |||||
Administrative expenses | 23 | (206,333) | (185,343) | (581,078) | (554,611) | |||||
Financial expenses | 23 | (819,937) | (920,656) | (2,428,535) | (2,296,843) | |||||
Other expenses, net | 23 | (76,262) | (111,123) | (252,542) | (224,564) | |||||
Profit before income taxes | 512,064 | 425,301 | 1,433,365 | 1,284,484 | ||||||
Current income tax and social contribution | 19 | (16,827) | 1,603 | (77,122) | (26,518) | |||||
Deferred income tax and social contribution | 19 | (84,512) | (46,617) | (190,579) | (160,835) | |||||
Income tax and social contribution | (101,339) | (45,014) | (267,701) | (187,353) | ||||||
Net income for the period | 410,725 | 380,287 | 1,165,664 | 1,097,131 | ||||||
Basic earnings per common share - R$ | 21 | 1.2762 | 1.1639 | 3.6049 | 3.3501 | |||||
Diluted earnings per common share - R$ | 21 | 1.2686 | 1.1562 | 3.5801 | 3.3285 |
The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.
5
PagSeguro Digital Ltd.
Unaudited condensed consolidated interim statements of comprehensive income For the three and nine-month periods ended September 30, 2023 and 2022
(All amounts in thousands of reais)
Three-month period | Nine-month period | |||||
September 30, | September 30, | September 30, | September 30, | |||
2023 | 2022 | 2023 | 2022 | |||
Net income for the period | 410,725 | 380,287 | 1,165,664 | 1,097,131 | ||
Other comprehensive income that may be reclassified to the | ||||||
statement of income in subsequent periods | ||||||
Currency translation adjustment | 40 | 1 | (33) | (717) | ||
Loss on financial investments designated at fair value through OCI | (84) | 662 | 267 | 249 | ||
Derivative Financial Instruments through OCI | 2,114 | 3,969 | 419 | (13,084) | ||
Income tax and social contribution | (690) | (1,574) | (233) | 4,364 | ||
Other comprehensive income for the period | 412,105 | 383,346 | 1,166,084 | 1,087,943 |
The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.
6
PagSeguro Digital Ltd.
Unaudited condensed consolidated interim statement of changes in equity For the nine-month periods ended September 30, 2023 and 2022
(All amounts in thousands of reais)
Capital reserve | Profit reserve | ||||
Share | Treasury | Capital | Share-basedlong-term | Retained | |
Note | capital | shares | reserve | incentive plan (LTIP) | earnings |
Equity valuation |
adjustments |
Other comprehensive | Total |
income | equity |
At December 31, 2021 | 26 | (285,011) | 5,828,754 | 247,532 | 4,732,624 | (22,372) | 645 | 10,502,198 | |||
Net income for the period | - | - | - | - | 1,097,131 | - | - | 1,097,131 | |||
Currency translation adjustment | - | - | - | - | - | - | (717) | (717) | |||
Gain on financial assets through OCI | - | - | - | - | - | - | 164 | 164 | |||
Derivative Financial Instruments through OCI | - | - | - | - | - | - | (8,636) | (8,636) | |||
Share based long term incentive plan (LTIP) | - | - | - | 113,307 | - | - | - | 113,307 | |||
Acquisition of treasury shares | - | (191,819) | - | - | - | - | - | (191,819) | |||
(LTIP) of treasury shares | - | 100,233 | - | (100,233) | - | - | - | - | |||
At September 30, 2022 | 26 | (376,599) | 5,828,754 | 260,606 | 5,829,755 | (22,372) | (8,543) | 11,511,628 | |||
Net income for the period | - | - | - | - | 407,637 | - | - | 407,637 | |||
Currency translation adjustment | - | - | - | - | - | - | 41 | 41 | |||
Loss on financial assets through OCI | - | - | - | - | - | - | (271) | (271) | |||
Derivative Financial Instruments through OCI | - | - | - | - | - | - | 8,636 | 8,636 | |||
Share based long term incentive plan (LTIP) | - | - | - | 14,082 | - | - | - | 14,082 | |||
Acquisition of treasury shares | - | (99,625) | - | - | - | - | - | (99,625) | |||
(LTIP) of treasury shares | - | 869 | - | (869) | - | - | - | - | |||
At December 31, 2022 | 26 | (475,354) | 5,828,754 | 273,819 | 6,237,392 | (22,372) | (138) | 11,842,127 | |||
Net income for the period | 20 | - | - | - | - | 1,165,664 | - | - | 1,165,664 | ||
Currency translation adjustment | 20 | - | - | - | - | - | - | (33) | (33) | ||
Loss on financial assets through OCI | 20 | - | - | - | - | - | - | (176) | (176) | ||
Derivative Financial Instruments through OCI | 20 | - | - | - | - | - | - | 277 | 277 | ||
Share based long term incentive plan (LTIP) | 20 | - | - | - | 109,172 | - | - | - | 109,172 | ||
Acquisition of treasury shares | 20 | - | (248,824) | - | - | - | - | - | (248,824) | ||
(LTIP) of treasury shares | 20 | - | 114,354 | - | (114,354) | - | - | - | - | ||
At September 30, 2023 | 26 | (609,824) | 5,828,754 | 268,637 | 7,403,056 | (22,372) | (70) | 12,868,207 |
The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.
7
PagSeguro Digital Ltd.
Unaudited condensed consolidated interim statement of cash flows For the nine-month periods ended September 30, 2023 and 2022 (All amounts in thousands of reais)
Nine-month period | ||
Note | September 30, 2023 | September 30, 2022 |
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before income taxes
Expenses (revenues) not affecting cash: | |
Depreciation and amortization | 23 |
Total Losses | 23 |
Accrual of provision for contingencies Share based long term incentive plan (LTIP)
Loss on disposal of property, equipment, intangible and investment assets Derivative Financial Instruments, net
Interest accrued
Other (income) cost, net
Changes in operating assets and liabilities
Accounts receivable
Financial investments (mandatory guarantee)
Inventories
Taxes recoverable
Other receivables
Deferred revenue
Other liabilities
Payables to third parties
Trade payables
Payables to related parties, net
Deposits
Salaries and social charges
Taxes and contributions
Provision for contingencies
Income tax and social contribution paid
Interest income received (paid)
NET CASH PROVIDED BY OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Amount paid on acquisitions, net of cash acquired | 10 | |
Purchases of property and equipment | 11 | |
Purchases and development of intangible assets | ||
Redemption (Acquisition) of financial investments | ||
NET CASH USED IN INVESTING ACTIVITIES | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Borrowings | 18 | |
Payment of borrowings | 18 | |
Payment of borrowings interest | 18 | |
Acquisition of treasury shares | 20 | |
Payment of leases | 11 |
NET CASH USED IN FINANCING ACTIVITIES
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | |
Cash and cash equivalents at the beginning of the period | 5 |
Cash and cash equivalents at the end of the period | 5 |
1,433,365 | 1,284,484 |
989,477 | 824,004 |
413,463 | 792,950 |
23,385 | 27,969 |
109,172 | 113,307 |
207,992 | 189,308 |
(2,488) | - |
393,056 | 1,063,441 |
(598) | 14,925 |
(4,944,398) | (14,955,359) |
229,461 | (209,556) |
(12,915) | (2,525) |
105,616 | 102,909 |
(8,115) | 38,187 |
(187) | (28,872) |
2,724 | (35,478) |
768,298 | 1,124,710 |
(12,212) | (219,710) |
(296,777) | (118,883) |
759,676 | 9,096,672 |
40,057 | 41,035 |
(24,083) | 23,615 |
(11,357) | (17,139) |
162,612 | (850,006) |
(78,553) | (86,560) |
1,750,587 | 2,525,849 |
1,834,646 | 1,589,283 |
(31,313) | - |
(692,232) | (1,027,025) |
(774,518) | (731,361) |
(120,019) | 393 |
(1,618,082) | (1,757,993) |
300,000 | 250,000 |
(100,000) | (250,000) |
(9,613) | (15,337) |
(248,824) | (191,819) |
(12,606) | (13,977) |
(71,043) | (221,133) |
145,521 | (389,842) |
1,829,097 | 1,794,362 |
1,974,618 | 1,404,519 |
The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.
8
PagSeguro Digital Ltd.
Notes to the unaudited condensed consolidated interim financial statements
As of September 30, 2023 and for the nine-month periods ended September 30, 2023 and 2022 (All amounts in thousands of reais unless otherwise stated)
1. General information
PagSeguro Digital Ltd., ("PagSeguro Digital" or the "Company"), is a holding company with its principal executive offices located in Cayman Islands, subsidiary of Universo Online S.A. ("UOL"), referred to, together with its subsidiaries, as the "PagSeguro Group", and was incorporated on July 19, 2017. A total of 99,99% of the shares of PagSeguro Internet Instituição de Pagamento S.A. ("PagSeguro Brazil") were contributed to PagSeguro Digital on January 4, 2018 and PagSeguro Digital maintains control of PagSeguro Brazil.
PagSeguro Brazil is a privately held corporation established on December 20, 2006, and engages in providing financial technology solutions and services and corresponding related activities, focused principally on micro-merchants and small and medium-sized businesses ("SMEs").
In June 2022, Boa Compra Tecnologia Ltda., changed its name to PagSeguro Tecnologia Ltda. ("PagSeguro Tecnologia") as part of a marketing strategy to bring the entity closer to PagSeguro's brand.
In January 2023, Pagseguro Biva Serviços Financeiros Ltda. incorporated Pagseguro Biva Correspondente Bancário Ltda and, in July 2023, PagSeguro Instituição de Pagamento S.A. incorporated Registra Seguro S.A.
The subsidiaries of PagSeguro Digital are PagSeguro Brazil, PagSeg Participações Ltda. ("PagSeg"), BS Holding Financeira Ltda. ("BS Holding") and PagSeguro Holding Ltd. ("PSHC"). The PagSeguro Group subsidiaries are as follows:
-
PagSeguro Brazil subsidiaries are PagSeguro Biva Securitizadora de Créditos Financeiras S.A.
("Biva Sec"), Fundo de Investimento em Direitos Creditórios - PagSeguro ("FIDC"), Wirecard Brazil Instituição de Pagamento S.A. ("MOIP), Concil Inteligência em Conciliação S.A. ("Concil") and Netpos Serviços de Informática S.A. ("Netpos"). - PagSeg subsidiaries are Net+Phone Telecomunicações Ltda. ("Net+Phone"), Pagseguro Tecnologia, BCPS Online Services Lda. ("BCPS"), CDS Serviços Financeiros Ltda. ("CDS"), Pagseguro Biva Serviços Financeiros Ltda. ("Biva Serviços") and PagBank Participações Ltda. ("Pag Participações").
-
Pag Participações subsidiaries are Tilix Digital Ltda. ("TILIX"), Yamí Software & Inovação Ltda.
("YAMÍ") and Zygo Serviços de Tecnologia S.A. ("ZYGO"). - PSHC subsidiaries are Pagseguro Chile SPA ("Pagseguro Chile), Pagseguro Colombia S.A.S ("Pagseguro Colombia), PSGP México S.A de C.V. ("PSGP Mexico") and Pagseguro Peru S.A.C. ("Pagseguro Peru").
- BS Holding subsidiaries are BancoSeguro S.A. ("Bancoseguro") and Paginvest CTVM Ltda. ("Paginvest").
These consolidated interim financial statements include Pagseguro Brazil, PagSeg, PSHC, BS Holding and corresponding subsidiaries.
9
PagSeguro Digital Ltd.
Notes to the unaudited condensed consolidated interim financial statements
As of September 30, 2023 and for the nine-month periods ended September 30, 2023 and 2022 (All amounts in thousands of reais unless otherwise stated)
2. Presentation and preparation of the unaudited condensed consolidated interim financial statements and significant accounting policies
2.1. Basis of preparation of the condensed consolidated interim financial information
These unaudited condensed consolidated interim financial statements have been prepared in accordance with the International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board ("IASB") and disclose all (and only) the applicable significant information related to the financial statements, which is consistent with the information utilized by management in the performance of its duties. The consolidated interim financial statements are presented in thousands of Brazilian reais, unless otherwise indicated, which is the functional currency of PagSeguro Group.
These unaudited condensed consolidated interim financial statements for three and nine-month periods ended September 30, 2023 were authorized for issuance by the PagSeguro Digital's Board of Directors on November 13, 2023.
These unaudited condensed consolidated interim financial statements for the three and nine-month periods ended September 30, 2023 have been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting" as issued by the IASB and disclose all (and only) the applicable significant information related to the financial statements.
These unaudited condensed consolidated interim financial statements do not include all the notes of the type normally included in an annual consolidated financial statement. Accordingly, this report is to be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2022 (the "Annual Financial Statements").
.
The accounting policies and critical accounting estimates and judgments adopted are consistent with those of the previous financial year and corresponding interim reporting period.
2.2. New accounting standards adopted in 2023
The accounting policies adopted in the preparation of the consolidated interim financial statements for the period ended September 30, 2023 are consistent with those adopted for the year ended December 31, 2022, except for the changes required by the pronouncements, interpretations and standards which became effective on January 1, 2023, as described below.
- IFRS 17 was issued in May 2017 as replacement for IFRS 4 Insurance Contracts. It requires a current measurement model where estimates are remeasured in each reporting period, Contracts are measured using the building blocks of discounted probability-weighted cash flows, an explicit risk adjustment and a contractual service margin (CSM) representing the unearned profit of the contract which is recognized as revenue over the coverage period.
10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
PagSeguro Digital Ltd. published this content on 16 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 November 2023 21:22:59 UTC.