Cielo Posts Adjusted EBITDA Margin at 70% and Net Income Margin at 44% in 2Q10

News provided by

Cielo S.A.

Aug 05, 2010, 08:36 ET

SAO PAULO, Aug. 5 /PRNewswire-FirstCall/ -- Cielo S.A. (formerly named VisaNet) (OTC: CIOXY; BOVESPA: CIEL3), the leading merchant acquirer and payment processor in Brazil, released its 2Q10 earnings.

Below are some of the second quarter highlights:

  • Transaction Financial Volume up 21.9% in 2Q10 over year-ago period, to R$ 61.6 billion; up 4.8% over 1Q10;
  • Net Operating Revenue up 21.6%, to R$ 1.049 billion; up 2.8% over 1Q10;
  • Costs and Expenses totaled R$ 360.0 million in 2Q10, up 12.8% over 2Q09 and 2.6% over 1Q10;
  • Adjusted EBITDA up 26.1% over 2Q09 to R$ 735.3 million, and up 3.0% over 1Q10;
  • Adjusted EBITDA Margin at 70.1% in 2Q10, up 2.5 p.p. over 2Q09 and up 0.1 p.p. quarter-on-quarter;
  • Net Income up 25.5% over 2Q09, to R$ 457.7 million, and up 4.0% over 1Q10;
  • Net Income Margin at 43.6%, up 1.3 p.p. over 2Q09 and up 0.4 p.p. over 1Q10;
  • Over 1.8 million Affiliated Merchants, covering 97.9% of Brazilian municipalities;
  • Partnership with HSBC: Cielo has become the bank's preferred acquirer;

To open the earnings release click on the link below:

http://www.mzweb.com.br/visanet/web/arquivos/Cielo_Release2T10_20100804_eng.pdf

2Q10 Earnings Conference Call

August 5, 2010

ENGLISH

11:00 a.m. (NY) | 12:00 p.m. (Brasilia)

Phone: +1 412 858 4600

Code: Cielo

Webcast: http://webcast.mz-ir.com/publico.aspx?codplataforma=2007

PORTUGUESE

9:30 a.m. (NY) | 10:30 a.m. (Brasilia)

Phone: +55 11 2188 0155

Code: Cielo

Webcast: http://webcast.mz-ir.com/publico.aspx?codplataforma=2006

About Cielo

Cielo is the Brazilian market leader in the payment card industry, responsible for affiliating merchants and managing the network for acceptance of payment cards, as well as for the capture, transmission, processing and settlement of transactions carried out with credit and debit cards. Besides the products and services traditionally offered in the market for electronic methods of payment, the Company has a track record of offering innovative solutions in segments that feature synergies with its activities, being a pioneer in offering a correspondent banking infrastructure network, pre-paid cellular phone airtime purchases, electronic vouchers and Cash Back, as well as in the capture and processing of electronic transactions that do not involve payments, such as connectivity and authorization for health-care transactions.

SOURCE Cielo S.A.

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