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Cielo (CIEL3) profits of R$503.1 million in the first quarter, a year-on-year increase of 14.1%.

Cielo (CIEL3) profits of R$503.1 million in the first quarter, a year-on-year increase of 14.1%.

Cielo (CIEL3) reported a recurring net profit of R$503.1 million in the first quarter of 2024 (1Q24), an amount 14% higher than that recorded in the same period of 2023 (1Q23 ).

According to the report, the performance was driven by improved financial results, cost normalization and increased tax efficiency.

Recurring earnings before interest, taxes, depreciation and amortization (EBITDA) totaled R$746.7 million in 1Q24, a decrease of 24.9% compared to 1Q23, mainly related to expenses as the company's transformation program progresses and the expansion of commercial strength.

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In contrast, the adjusted EBITDA margin reached 29.1% in the first quarter of 2024, an annual decrease of 9.6 percentage points.

Total net revenues amounted to R$2.563 billion in the first quarter of this year, a decrease of 0.3% compared to the same point in 2023.

The financial result was positive at R$37.5 million, reflecting a financial loss of R$70.6 million compared to the previous year.

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Total expenses increased by 11.4% year-on-year, reflecting investments in business expansion and the #PraCimaCielo transformation programme.

Cielo Brasil's normalized costs decreased by 15.1% year-over-year, reflecting operational efficiencies that resulted in lower costs associated with pickup and technology stations.

At March 31, Cielo recorded a cash and equivalent balance of R$1,260 billion, a decrease of R$1,090 billion compared to March 31, 2023 and a decrease of R$173.9 million compared to March 31, 2023. December 2023.

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