LISBON, July 29 Portugal's recently privatised
postal service CTT posted a slightly higher than
expected 14 percent rise in its first-half net profit on Tuesday
as revenue in its financial services business increased by 21
Net profit rose to 36.1 million euros ($48 million),
exceeding the average of analysts' forecasts of 34 million
euros. Total operating revenue rose almost 2 percent to 356.5
million euros, despite a continuing decline in regular mail
traffic that has been decelerating.
Express delivery and parcel service traffic rose almost 12
percent, but revenues in the segment still dipped 1 percent.
CTT's financial services business includes sales of savings
products such as Treasury certificates and have been on the
CTT has said it will analyse the possibility of setting up a
postal bank and take a decision in the fourth quarter. Just
before the privatisation last year the Bank of Portugal gave its
authorisation for CTT to set up banking services if shareholders
opt to do so.
CTT shares closed 2.1 percent lower at 7.54 euros before the
results were announced. Its shares debuted on the Lisbon bourse
in December after an oversubscribed stock offering at a price of
($1 = 0.7457 euros)
(Reporting By Andrei Khalip; Editing by Greg Mahlich)