Half Year 2024 CTT Correios de Portugal SA Earnings Call Transcript
Key Points
- CTT-Correios de Portugal SA (CTTOF) reported strong revenue growth driven by express & parcels, with volumes nearing peak season levels.
- The company achieved record high margins in the second quarter due to high volumes and a unified pricing system for Iberia.
- CTT-Correios de Portugal SA (CTTOF) saw a significant increase in profit before tax by 45% in the quarter.
- The bank division opened 20,000 new accounts in the first half, indicating strong client engagement and growth.
- The company is experiencing impressive growth in Spain, with a 69% increase on top of 37% growth in the same quarter last year.
- Addressed mail volumes decreased by 10.9% year-on-year, despite an increase in average revenue per item.
- Costs in mail & other segments increased by 10.5% due to inflation and lower financial services activity.
- Financial services revenue declined significantly due to a difficult comparison with the previous year.
- The company is facing challenges in normalizing public debt placements, which are taking longer than expected.
- There is a slowdown in express & parcels volumes in Portugal, with only a 3.2% year-on-year growth in the second quarter.
Good morning, and welcome to CCT's first half 2024 results conference call. Please note that this conference is being recorded.
(Operator Instructions)
I will now turn the call over to Mr. João Bento, CEO.
Thank you, Esmo. Good morning, everybody. Welcome to our second quarter results presentation.
So if you move to slide -- the first slide, which is slide number four. We had a very strong execution in express & parcels, which drove revenue growth. Indeed, we actually are with the volumes close to those in our last peak season, having delivered more than 63 million objects in the first half and since the second half of the year should be stronger, this compares extremely well with the 100 million parcels we delivered last year.
We've started now a common segmentation of larger accounts and unique pricing system for Iberia. So no longer Portugal and Spain and all this, including this very high volumes,
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