Cielo profit increases and diversifies your recipes

SAO PAULO-the net profit of the merchant acquirer and payment processor Cielo grew 25.9% in the second quarter of 2014 for R $ 797 million, while net operating income advanced 13.6% to r $ 1.8 billion, compared to the same period in 2013. In the last twelve months closed last June, the company diversified its revenue and grew up mainly in the area of discounts of receivables, whose net revenues increased 52.4% for the amount of R $ 218.1 million in the second quarter of 2014.
"Our company has a dynamic of its own and takes advantage of the replacement of the check and the money for the card and the insertion in other regions of Brazil," responded the President of Cielo, Rômulo de Mello Days, when being questioned yesterday about the current scenario of slowing economic activity in Brazil.
Even with the result, the actions of Cielo recorded the biggest fall in the stock market yesterday, retreating 4.74% to R $ 42,15. The previous expectation of analysts was that the Cielo recipe of r $ 1,947 Displaya billion and Ebitda [earnings before taxes, depreciation and amortisation] of $ 1,199 billion.
Ebitda [also called cash generation] of merchant acquirer and payment processor was for $ 956 million in the second quarter of 2014, an increase of 9.3% compared to the previous year, but well below the minimum expectation of the market that was 20% increase.
In the second quarter of 2014, the financial volume of transactions captured by machines (POS) of the Cielo reached r $ 125,338 billion, an increase of 17.9% compared to the amount of R $ 106,284 billion in the same period in 2013.
But in terms of evolution of financial volume, Days argued that the figures presented in the current balance are more similar to the behavior of 2012, when there was slowing growth.
The evolution of financial transaction volume growth slowed from 22.5% in the first quarter of 2014 to 17.9% in the second quarter of 2014. "The trend of the curve shows a behavior similar to the year 2012," argued the President of Cielo.
In particular, the presented credit cards financial volume 13% higher to $ 75,979 billion, and debit cards exhibited 26.4% advance for the amount of R $ 49,359 billion in transactions captured.
"The overall delinquencies in banks fell. We notice that the debit card has been used and, in some ways, replaced a little the parceled shopkeeper. Customers are using debit and credit functions more than the function in installments, in which shopkeeper could share consumer purchases by as much as 12 times, "explained Days on the behavior of customers in the current economic scenario.
Among the highlights of the balance, gross revenues in anticipation of receivables showed 63.8% annual evolution for R $ 439,1 million in the second quarter of 2014, compared to gross revenues of R $ 268.1 million in same period in 2013.
In comparison to the r $ 410,2 million recorded in the first quarter of 2014, with gross revenue anticipation of receivables showed quarterly evolution of 7%.
On this same basis, net revenue with anticipation of receivables exhibited quarterly 14.2% evolution compared to the r $ 191 million recorded in the first three months of 2014. "The anticipation of receivables is a facility too large for the small retailer, he can have the operation on the machine itself and compare the prices of the different financial institutions. The average ticket is $ 3,000, but there is very small, "said tickets Days.
The President explained that retailers can get best rates in anticipation of receivables with financial institutions when requesting tickets are bigger, but the small shopkeeper also can anticipate lower values on the market. The base of active retailers grew 11.3% in twelve months to 1.473 million, while the number of installed machines (POS) rose 9 percent to 1.899 million at the end of June.
The balance sheet numbers
Operating expenses increased $ 49.8 million, or 21.1%, to R $ 285,2 in the second quarter of 2014, when compared to the same period in 2013. On that basis of comparison, personnel expenses showed an increase of 34.3%, or $ 22.4 million to r $ 87.6 million at the end of last June.
"This variation is due mainly to increased headcount strategic projects team and relationship with banks and adjustment in salaries set by agreement with the Union," says the text.
In the line of investments, the company plans to achieve $ 500 million in fiscal year 2014. "We will continue investing in the strategy of differentiation through our multi-brand and multichannel, multiservice positioning. We at all channels to meet the different demands and needs of our customers. An example is the Cielo Mobile, our product aimed at professional and individual entrepreneurs. We're already almost 200 thousand customers in this solution and we started yesterday a media campaign around the Brazil highlighting the advantages of Cielo Mobile, "said Romulo Days.
Among the other data of the balance sheet, the financial result totaled r $ 325,7 million in the second quarter of 2014, an increase of 74.5% compared to the same period last year when they obtained $ 186,6 million.
In the second quarter of 2014, financial revenues decreased by $ 1 million, or 22.1%, to R $ 3.6 million, due to the variation of the average balance of the financial investments. At the same time, financial expenses increased by $ 37 million, or 57.9%, to R $ 100.9 million. "This variation takes place mainly in the light of the interest accruing from the increase in the advance on receivables operation with issuers," says the company.