CTT Correios de Portugal SA
OTC:CTTOF
CTT Correios de Portugal SA
CTT - Correios de Portugal SA engages in the provision postal and financial services. The firm's activities are divided into four business segments: Mail, Express & Parcels, Financial Services and CCT Bank. The Mail division operates post offices, as well as offers postal services to business customers, distribution of advertising materials and postal communication solutions, among others. The Express & Parcels division provides courier services, as well as urgent mail and parcel delivery under CTT Expresso, Tourline and Corre brand names. The Financial Services division, under PayShop brand name, offers payment processing through a national network of agents, such as supermarkets, tobacco stores and kiosks. The CCT Bank division includes retail banking activity. The firm operates in Portugal, Spain and Mozambique.
CTT - Correios de Portugal SA engages in the provision postal and financial services. The firm's activities are divided into four business segments: Mail, Express & Parcels, Financial Services and CCT Bank. The Mail division operates post offices, as well as offers postal services to business customers, distribution of advertising materials and postal communication solutions, among others. The Express & Parcels division provides courier services, as well as urgent mail and parcel delivery under CTT Expresso, Tourline and Corre brand names. The Financial Services division, under PayShop brand name, offers payment processing through a national network of agents, such as supermarkets, tobacco stores and kiosks. The CCT Bank division includes retail banking activity. The firm operates in Portugal, Spain and Mozambique.
Strong Revenue and EBIT Growth: CTT delivered a solid first quarter with 9.5% revenue growth and recurring EBIT up nearly 20%, driven by strong performances in Logistics and Financial Services.
Financial Services Rebound: Public debt placements soared by over 400% year-on-year, leading to 123% revenue growth in Financial Services and a 126% jump in EBIT for the segment.
Express & Parcels Above Market: Express & Parcels volumes rose 15% (above market), translating into 23% revenue growth, though EBIT margin was flat due to investments in capacity and service quality.
Guidance Reaffirmed: Management reiterated their guidance for over EUR 100 million in organic recurring EBIT for 2025, citing continued solid performance and confidence in meeting targets.
Cacesa Acquisition Integrated: The Cacesa deal closed as planned, with integration underway; CTT expects to provide more detail on its contribution next quarter.
Shareholder Returns: A EUR 0.17 dividend per share will be paid in May, and the company has completed a EUR 25 million share buyback, with further buybacks possible depending on future conditions.
Operating Costs & Specific Items: Operating costs rose 8.8%, reflecting volume growth and ongoing investments; specific one-off costs mainly related to HR restructuring and M&A are expected to decline over the remainder of the year.
