Brazil's PagSeguro slides on higher expenses

PagSeguro Digital

21/08/2024 15:56

** Shares of Brazilian payments firm PagSeguro  PAGS.N  fall
11.1% to $12.97
    ** After market close on Tuesday, PAGS reported Q2 selling
expenses of 466 mln reais ($85.2 mln), a 45.7% jump compared to
a year ago, pressured by higher marketing expenses
    ** Morgan Stanley analysts say selling expenses are growing
well above revenue, underscoring the increasingly competitive
environment in Brazilian payments industry
    ** Adds that investors are "hyper sensitive" to any signs of
increasing competition in the payments industry
    ** Meanwhile, Q2 net take rate - fees charged for processing
a transaction - contracted to 2.14% from 2.53% a year earlier
    ** Take rate fell sharply probably given the dilution from
faster growth in large accounts and the overall tough
competitive landscape - Morgan Stanley 
    ** As of last close, PAGS shares were up 17% YTD

($1 = 5.4726 reais)

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))