Brazil’s Cielo Q2 net profit soars, beating forecasts

Brazilian payment processor Cielo SA (CIEL3.SA) said on Tuesday its second-quarter net profit more than tripled, beating analysts’ forecasts, helped by proceeds from the sale of a subsidiary.

The company, controlled by lenders Bradesco (BBDC4.SA) and Banco do Brasil (BBAS3.SA), posted net income of 635.3 million reais ($120.38 million), well above the 285.9 million reais expected by analysts in a forecast compiled by Refinitiv.

Cielo’s profit was boosted by the sale of its stake in U.S. firm Merchant e-Solutions Inc, which was concluded in April and added 282 million reais to its bottom line.

Total payment volume processed by the company was 221 billion reais, up about a third from last year.

Operating net revenue, on the other hand, fell 9.7% to 2.54 billion reais, reflecting the loss of revenue from the sale of e-Solutions. Excluding the former subsidiary, revenue grew by 33.7%.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter was 1.18 billion reais, more than doubling from year-ago period.