RDCD has increased its market share and lost less MDR, increasing revenue from commissions in 7%. However, lost 20% in POS Rental and Net Financial Income was stable leading also to a quite stable total revenue. With costs and operating expenses growing, earnings dropped 20%.
CIEL lost market share and lost even more MDR, stagnating revenues from commissions. However, lost little in POS Rental and Net Financial Income increased impressive 75%, leading to a growth of 6% in total revenue. This growth offset cost and operating expenses growth, so earnings dropped only 4%.
So I think that again CIEL was better than RDCD.
5 comments:
CIEL performed well. I have those points the remark:
1. the growth in the prepayment business sustained CIEL's earnings, as expected. That revenue has yet a lot of space to grow;
2. the cost os services of CIEL increased much less than RDCD's;
3. the CIEL's cost per transaction is lower than RDCD's. That's the advantage of CIEL's larger size.
4. CIEL lost more MDR, but it's numbers were larger than RDCD's in 1Q10.
Mercado faz mea culpa
I just have to remember there are no competition: only 2 companies!
Can you guess what could happens when a big international player comes in?
I think CIEL and RDCD have been able to dig a huge moat along the years: it's own huge size. A new incumbent would have to loose money for many years before being able to compete with them in cost.
http://exame.abril.com.br/tecnologia/noticias/google-vai-lancar-sistema-de-pagamentos-moveis-diz-fonte
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