(Updates with analyst comment in fifth paragraph and shares in last.)
Oct. 27 (Bloomberg) -- Redecard SA, Brazil’s second-largest card-payment processor by market value, said its profit rose for the first time since the second quarter of 2010 as the company dismissed workers to boost efficiency.
Net income increased 6 percent to 343.6 million reais ($195.4 million), from 324.1 million reais a year earlier, Redecard said in a regulatory filing yesterday. The Sao Paulo- based company beat the 326.8 million reais average estimate of 11 analysts surveyed by Bloomberg.
Operating costs declined 1.6 percent, not including a non- recurring expense of 7.6 million reais to pay for job cuts, the firm said in the statement. Redecard now has 1,078 employees, the company said.
Net operating sales rose 9 percent to 920.3 million reais. The value of credit- and debit-card transactions rose 29 percent to 58.5 billion reais, Redecard said.
The result “confirms the good momentum for acquirers - and we think the stock will react positively”, Eduardo Rosman, an analyst with Banco BTG Pactual SA, who has a “buy” rating on Redecard shares, said in a report today. “The good result was partly anticipated by the market given strong stock performance.”
Redecard rose 3.2 percent to 29.74 reais in Sao Paulo trading at 9:11 a.m. New York time. The shares have gained 41 percent this year, compared with a drop of 15 percent for the Bovespa benchmark index.
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