(Updates with analysts estimates in second paragraph.)
Feb. 1 (Bloomberg) -- Redecard SA, Brazil’s second-largest card-payment processor by market value, said fourth-quarter profit rose 31 percent and surpassed analysts estimates after it cut transactions costs and reduced headcount.
Adjusted net income, which excludes some items, increased to 456.9 million reais ($263.5 million), from 348.7 million reais a year earlier, according to a regulatory filing. The Sao Paulo-based company beat the 402 million reais mean estimate of 11 analysts surveyed by Bloomberg.
Operating costs declined 20 percent to 116 million reais as the company reduced media expenses, and made an internal reorganization, Redecard said in the statement. Net operating sales rose 14 percent to 1.01 billion reais. The value of credit- and debit-card transactions rose 13 percent to 64.7 billion reais, Redecard said.
Chief Executive Officer Claudio Yamaguti led the company to “efficiency gains as a result of the shrinking headcount” and a “slight decrease” in transaction costs, Raquel Varela and Flavio Yoshida, analysts at Sao Paulo-based Votorantim Corretora, wrote in a Jan 19 report. They have a “buy” rating for the company.
Redecard rose 0.3 percent to 31.40 reais in Sao Paulo trading today. The shares have risen 7.6 percent this year, compared with a gain of 14 percent for Brazil’s benchmark Bovespa index.
--Editors: Steve Dickson, William Ahearn
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