Cielo cuts costs and recurring profit grows 36% in the 1st quarter

Cielo had an increase in profit in the first quarter, as a strong policy of controlling expenses and higher revenues from prepayment of receivables offset the worsening in the financial line.

The largest electronic payment company in the country announced this Tuesday (3) that its recurring net income from January to March totaled R$ 184.6 million, up 35.9% over a year earlier.

According to Cielo, also on a recurring basis, the consolidated operating result measured by earnings before taxes, interest, depreciation and amortization (Ebitda) increased by 52.1%, to R$711.5 million.

According to the results report, net revenue for the period reached R$ 2.76 billion, up 1.5%. But excluding the sale of Multidisplay, in November, the growth was 15.2%.

One of the highlights of the period was the anticipation of receivables, which totaled R$ 26 billion, up 31% over a year earlier, with more tenants asking to receive sales proceeds, in a scenario of high interest and inflation.

In addition, the financial volume processed by Cielo’s terminals in payments with debit and credit cards rose 23.9% year-on-year, to R$198.35 billion.

At the other end, total spending fell by 3.4% year on year. Excluding non-recurring effects, the drop would have been 8.9%, said Cielo.

The company had another round of decline in the base of installed terminals. Considering commercial establishments that carried out at least one transaction in the last 90 days, the total active base ended the quarter 17.4% lower in 12 months, after the company suspended subsidies for small businesses.

Cielo’s financial result in the quarter was negative by 93.4 million reais, compared to a positive amount of 51 million a year earlier, reflecting the effect of high interest rates on the company’s debt.

In April, Cielo concluded the sale of its unit in the US, MerchantE Solutions, for US$ 137 million.