Cielo - 17.9% Increase in Financial Volume and Net Income of R$797 Million in 2Q14

BARUERI, Brazil, July 29, 2014 /PRNewswire/ -- Cielo S.A. (BM&FBOVESPA: CIEL3 / OTCQX: CIOXY) announces today its results for the second quarter of 2014. The Company's consolidated financial statements are presented in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and in accordance with the accounting practices adopted in Brazil.

2Q14 HIGHLIGHTS

• Transaction financial volume totaled R$125.3 billion, up 17.9% year-on-year, or R$19.1 billion; and increase of 4.8% compared to 1Q14, or R$5.8 billion;
• Net Operating Revenue of R$1.8 billion, up 13.6% or R$221.0 million year-on-year and increase of 1.3% or R$23.0 million quarter-on-quarter;
• Net revenue from Prepayment of Receivables* totaled R$218.1 million, up 52.4% or R$75.5 million year-on-year and 14.2% or R$27.1 million quarter-on-quarter;
•  Prepayment of Receivables reached 17.9%, over the financial volume of credit, up 1.8 p.p. year-on-year and down 0.8 p.p. quarter-on-quarter;
• EBITDA of R$955.5 million, up 9.3% or R$81.6 million year-on-year and reduction of 4.6% or R$45.9 million quarter-on-quarter;
•  EBITDA margin at 51.9%, down 2.0 p.p. year-on-year and 3.2 p.p. quarter-on-quarter;
• Cielo's net income totaled R$796.8 million, up 25.9% or R$163.7 million year-on-year and down 0.7% or R$5.9 million quarter-on-quarter;
• Cielo's net income margin at 43.3%, up 4.2 p.p. year-on-year and down 0.9 p.p. quarter-on-quarter;
• Cielo and Linx sign a Memorandum of Understanding aimed at setting up a joint venture for the creation and development of an integrated and unique solution (IPOS), which includes commercial automation, management software and electronic payments platform for the Brazilian small retail market.
• Cielo and Smiles sign for a commercial agreement to expand loyalty program in retail;
• By 8th consecutive time Cielo reaches 1st place in the Services category in the ranking from "Maiores e Melhores da Revista Exame" (Biggest and Best from Exame Magazine);
• 2nd place among the Most Innovative Companies in Brazil in the ranking from INFO Exame magazine;
• 16th place in the ranking of Most Valuable Brands in Brazil, prepared by Istoe Dinheiro magazine in a partnership with BrandAnalytics/Milward Brown. Among the 10 brands that have valued the most in 2013;
• Cielo is considered one of the 100 most prestigious brands in Brazil according to the Epoca Negocios magazine;
• Chosen, by 4^th consecutive time, among the Best Companies to Start a Career in the Voce S/A magazine guide - Awarded by 4th consecutive time;
• Cielo accompliches 2nd place in the ranking of "The 100 Best in Brazil according to the IGC," of Corporate Governance Index, published by the America Economia magazine.

*Net funding costs revenue (see explanation in management analysis of Prepayment of Receivables Revenue)

Click on the link below to open the earnings release:

http://cielo.riweb.com.br/ShowResultado.aspx?IdResultado=uywJ5In/QWSq7FW4bsvWyQ==&linguagem=en

2Q14 Earnings Conference Call
July 30, 2014

ENGLISH
10:30 a.m. (New York) | 11:30 a.m. (Brasilia)
Toll free USA : [phone] 
Phone.: [phone]
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Code: Cielo

PORTUGUESE
09:00 a.m. (NY) 10:00 a.m. (Brasilia)
Phone.:[phone]
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Code: Cielo

Investor Relations Director
Roberta Noronha
[e-mail]
[phone]

SOURCE Cielo S.A.

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