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CTT profits fall by 38% to 3.7 million, the bank's income growth to 9 million -. The Economic Journal


Profit in the first quarter of CTT – Correios de Portugal (CTT) fell by 38.1% year on year to EUR 3.7 million. CTT justify profits drop with the reduction of 20,4% EBIT – earnings before taxes – to 14.2 million, compared with 17.9 million in the same period last year.

Compensation for termination by mutual agreement, is included in the transformation of the current operational plan, although inserted under "specific items", which improved by 0.3 million year on year, and whose costs amounted to 5.6 million, fixed at four million euros in the period from January to March this year, and the impact on net profit.

The financial results were recorded in the negative 2100000, which also put pressure on the profit, which does not benefit from a reduction in tax payable, which declined by 0.3 million to 2.9 million.

Operating Results "in line" with the first quarter of last year, dropped to one hundred thousand euros 176.9 million euros.

Among the four directions of the CTT, especially a decrease of 3.3% (-4.1 million) activities "Mail and others," which produced 123.3 million revenue. The gap in the respective segment CTT – account for almost 70% of the profits – was associated with a fall of 11.3% of addressed mail traffic, which is "substantially affect the shipment delays for state [segundo trimestre de 2019] and loss of customer traffic in the banking and insurance to competition at the end of March 2018, "he said in a statement the company sent to the Commission on the Securities and Exchange Commission. "Excluding these effects, the decline [do tráfego endereçado] It would be between 8% and 8.5%, "reads the note.

Gains segment «Expresso and orders" accounted for about 30% of the total & # 39; revenues and showed an increase of 2% to 36.7 million Portuguese operation makes the largest contribution to this increase (3.5% or 0.8 Mill. ) and compensate for the loss in Spain (-0.4%) in Mozambique (-1.1%).

Income from bank CTT, spent 100% of the Group have been the fastest growing. In the first quarter of this year the bank's earnings led by Francisco Lacerda increased by almost 19% to nine million euros, which means "the growth of net interest income (66.3%), as well as commissions received 78.7%, the negative impact of decline -5.8 % of payments and transfers for Payshop and others. "

At the operational level, CTT said "a significant increase" the number of accounts opened with the Bank and CTT 'steady growth' deposits at the end of March 2019 In the first quarter of last year, the Bank of CTT had 255,000 accounts have been opened, the number has increased by approximately 48% to 379,000 in March

Financial services also registered a positive trend compared to the same period last year, increased by 31.1% of sales to 7.8 million.

Operating expenses rose 1.1% to 155.9 million, "mainly due to the direct costs of operations (…) in the field of business and ordered the Express and Banking." But the continuing transformation of Operations plans to cut 1.1 million in operating expenses in areas such as business mail and other, as well as in financial services, which reduces the cost of 0.7 million.

EBITDA – earnings before taxes, depreciation and amortization – fell by 7.5% to 21 million, felt the impact of decreases in segments and other post and express orders, which were not offset by developments in the financial services and banking CTT.

Forward contracts increased

In March this year, CTT was 12.075 employees, ie 119 less than in the same period last year. CTT explained that had been cut "means passion in the business areas of" Mail "and" Financial Services "and reinforced for the business areas of" Express and orders "and CTT Bank.

The total number of work, about 90% of the & # 39 are permanent workers, while the remaining portion corresponds to futures contracts. It was to reduce the 217 military personnel and an increase in 98 contracts, and in this evolution "had a special influence layoffs CTT workers (-270)."

These figures already reflect the impact of the outflow of the labor force in 2019 (55), will be added to the outputs already held in the past two years as part of the optimization of human resources program, framed in the current transformation of the operational plan. In 2017, the remaining 161 employees, a number which increased to 268 in 2018.

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