LISBON May 7 Portugal's recently privatised
postal service CTT posted a 1.3 percent rise in
first-quarter profit as operating revenue stabilised after years
of declines, financial services sales rose and after it cut jobs
Net profit rose to 18.1 million euros ($25.2 million), up
1.3 percent from a year ago, CTT said on Wednesday. Operating
revenue edged 0.3 percent higher to 176.4 million euros, despite
a drop in regular mail traffic.
The company has reduced its staff by 5 percent to 12,235
employees by not replacing those who retired, and operating
costs dropped 0.7 percent to 143 million euros.
Revenue from express delivery and parcel service rose nearly
4 percent, while financial services brought 20 percent more than
a year ago, it said. CTT's financial services include sales of
savings products such as Treasury certificates.
CTT said it would analyse the possibility of setting up a
postal bank in detail in the current quarter, "within the
framework of various initiatives for the expansion of financial
services", and that the board should make a decision in the
Just before the privatisation last year, the Bank of
Portugal issued an authorisation for CTT to set up banking
services if shareholders opt to do so.
CTT shares closed down 0.5 percent lower at 8.09 euros
before the results were announced but still outperformed the
broader market, which was down 1.7 percent.
Its shares debuted on the Lisbon bourse in December after an
oversubscribed stock offering at a price of 5.9 euros.
The privatisation process was part of a sale of state assets
required as a condition of Portugal's EU/IMF bailout, which ends
this month as the economy recovers and Portugal made a
successful return to the international bond market.
($1 = 0.7183 Euros)
(Reporting by Andrei Khalip; editing by Jane Baird)