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Press Release -- November 15th, 2021
Source: padtec

Padtec ends the third quarter with record growth in operating revenue and cash generation

Increase reached 55% compared to the same period last year; operating revenue of the Brazilian supplier already totals R$ 326 million for 2021.

Padtec Holding (B3: PDTC3), the sole shareholder of Padtec S/A, a leading manufacturer of optical transport systems, ended the third quarter of 2021 with gross operating revenue of approximately R$ 120 million, an amount that represents a growth of 42.1% compared to the same quarter in 2020. With this, the company’s operating revenue reached R$ 326 million in the 9-month period of 2021 – an increase of 55% compared to the same period last year and 2.6% in relation to the revenue registered in 2020 (R$ 317.9 million). It was the best quarterly result in the company’s recent history.

Argemiro Sousa, Padtec’s Business Director, points out the increase in demand for broadband and the launch of new products as the main factors responsible for the expansion of the company’s business. The executive emphasizes that the growth, which had already been taking place due to the evolution of telecommunications networks in the country – and in the world -, was accelerated by social isolation requiremnts, which demand increasingly greater transmission capacities to meet the increase in traffic and services. “The companies that make up the telecommunications ecosystem needed to adapt their network infrastructure to the level required by the market, which led to massive investments in the expansion and improvement of these networks and their services”, says the executive.

In the future, Padtec expects the world to continue to demand investments in digitization and connectivity infrastructures with high data capacity, both in fiber optic networks and in the new generation of mobile communications (5G). Factors such as the deployment of 5G networks in Brazil and Latin America and the Caribbean (Latam), the entry of new neutral network companies, the accelerated growth and distribution of data centers, the development of new regional providers and the professionalization and injection of resources in existing ones, for example, should further accelerate these investments.

In the period from January to September 2021, Padtec also recorded an improvement in EBTIDA, with earnings before interest, taxes, depreciation and amortization of R$49 million. Adjusted EBTIDA (which excludes non-recurring events) reached R$ 34 million, with a margin of 13.8% – growth of 27% when compared to the amount registered in 2020. The gross margin in the 3rd quarter of 2021 was 36.3%, maintaining the same level as the 2nd quarter of 2020 (above 35%) and reinforcing the profitability of the company’s businesses.

In the quarter that celebrates its 20th anniversary, Padtec obtained an important recognition of its positive financial performance and the sustainable growth registered in recent years. The company won third place in the Telecommunications category of the Best and Biggest 2021 award, given by Exame magazine. In this year’s edition, in addition to operating and financial results, the publication also analyzed companies’ ESG (Environmental, Social and Governance) practices.

With the intention of strengthening its compliance, governance and ethics practices, in order to monitor – and even anticipate – the evolution of the market, Padtec announced, in September, the creation of a new board member dedicated to the legal area and general secretary. Appointed to the new post was the executive Patrícia Sayuri Iqueda, who since 2014 has led the management of the legal department at Padtec S/A, heading up the team responsible for conducting legal and compliance matters in Brazil and abroad.

In the research and development area, between January and September 2021, Padtec invested R$ 30.6 million in the creation of new products for high-performance optical communication systems, maintaining the same percentage of R&D investments in relation to net revenue of recent years. “The investment in technology is the differential that allows Padtec to remain competitive and at the frontier of knowledge in its area of expertise”, emphasizes Roberto Nakamura, the company’s Technology director. “Our focus is on providing networks capable of adapting to constant changes in demand, so that people and companies can stay connected”, he adds.

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