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Locaweb has adjusted profit of BRL 25.6 million in the 3rd quarter, with pressure on margins

A Locaweb reported on Wednesday (10) adjusted net income of BRL 25.6 million, almost double the result registered a year earlier, with strong revenue growth, as acquisitions pressured the margins of the company specializing in website hosting and computing in a cloud.

The company’s net operating revenue jumped 65.7%, to R$ 209.1 million, with the Commerce segment – ​​which considers the revenues from Tray, Tray Corp, Melhor Shipping, Vindi, Ideris, Samurai, Dooca, Credisfera, Bling, Bagy and Octadesk – soaring 162.2%, to R$ 105.6 million.

Locaweb’s operating costs and expenses, in turn, rose 89.6% year-on-year, with part of this evolution related to acquisitions made by the company, in addition to marketing expenses mainly at Tray.

The result measured by the Ebitda Adjusted (earnings before interest, taxes, depreciation and amortization) shrank 6.1%, to BRL 33.6 million, with a drop of 12.3 percentage points at the margin, to 16%.

The company linked the performance of the margin “to the consolidation of the results of the acquired companies, which have an Ebitda margin lower than those presented in the group”.

Reference: CNN Brasil

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