The company’s performance in the second quarter, which was the best in the last five years, contributed to the good half-year result.
Padtec Holding (B3: PDTC3), the sole shareholder of Padtec S/A, a leading manufacturer of optical transport systems, ended the first half of 2021 with gross operating revenue of R$ 205.7 million, an amount that represents a growth of 63.7% compared to the same period last year. In the second quarter of the year, operating revenue totaled R$ 119.6 million – an increase of 38.8% compared to the first quarter of 2021, and an increase of 86.3% compared to the same period last year. It was the company’s best quarterly result in the last five years, contributing to its good performance in the half-year and realizing the growth ambitions of its operations in Brazil and abroad.
The equipment business unit based on the DWDM (Dense Wavelength Division Multiplexing) technology played an important role in the good results achieved by Padtec, recording a growth of 75.6% in its revenue in the first six months, compared to the same period in 2020. Argemiro Sousa, Padtec’s Business Director, points out the increase in demand for broadband and new services and the launch of new products by the company as the main factors responsible for the expansion of its business. The executive emphasizes that this growth, which had already been taking place due to the evolution of telecommunications networks in the country, was accelerated by the need for social isolation, which requires increasingly greater data transmission capacities to meet the increase in traffic and services throughout Brazil. “Our customers continue to report strong growth in demand for bandwidth,” says the executive. “To meet the significant increase in demand, many of them have activated new data transmission channels in their installed optical systems, or expanded their infrastructure”, he adds.
In the first half of the year, Padtec also recorded an improvement in EBITDA, with earnings before interest, taxes, depreciation and amortization of R$ 36 million – triple the amount recorded in the same period in 2020. Adjusted EBTIDA (that disregards non-recurring events) reached R$ 21.1 million, with a margin of 13.6% – an increase of 9 percentage points. Gross margin was 35.5% (an increase of 3 percentage points), maintaining the same level as in recent quarters and reinforcing the profitability of the company’s businesses despite the exchange rate fluctuation between the periods.
In May of this year, Padtec joined the Novo Mercado of B3 S.A. – Brasil, Bolsa, Balcão, a segment of the Brazilian stock exchange dedicated to trading shares of companies committed to corporate governance practices that exceed the legal requirements. “The adoption of good corporate governance practices results in more efficient management, greater awareness of the company’s role in society and an increase in the perception of value of our stakeholders”, explains the CFO and Investor Relations Officer Renato Jordão.
In line with the strategy of expanding its presence in the international market, Padtec announced, in June of this year, an agreement with Televés to offer DWDM solutions in Europe, Middle East and Africa (EMEA). Under the agreement, the solutions developed by Padtec become part of the product line of the Spanish multinational. “Televés is well positioned to help us deliver solutions capable of meeting the demands of the EMEA market. Padtec already holds the leadership of the Latin American markets in the area in which it operates and, with this initiative, it accelerates its international expansion plan”, highlights Manuel Andrade, CEO of Padtec North America and Director of International Operations.
Carlos Raimar, Padtec’s CEO, states that the company intends to continue investing in the development of quality products with cutting-edge technology, in addition to expanding its leadership in the Brazilian market and significantly expanding its international presence. “The change in the dynamics of the Brazilian telecommunications market, with the accelerated adoption of fiber optic networks for residential and corporate applications, is now being replicated in other countries in Latin America. It is, without a doubt, an opportunity to expand our business in these regions”, highlights the executive. “In addition, the prospect of activating 5G mobile networks in Brazil should generate a strong push to build communication networks across the country, both by operators – already active in the mobile segment – and by regional providers. To support 5G, investment in high-capacity optical networks should significantly increase the demand for DWDM equipment, benefiting our direct customers and their users and paving the way for a society with more connectivity and quality in data services”, adds Raimar.
The full results report is available on the ‘Investor Relations’ page of the Padtec website (www.padtec.com.br/investor/padtec-holding/).