LPS Brasil - Consultoria de Imóveis (LPSB3) Q2 2020 earnings summary

Executive summary

• Digital tools and operating changes helped mitigate pandemic disruption; sales stands and agencies reopened in July with health precautions.

• CrediPronto was the quarter’s standout, with mortgage originations up 32% YoY and BRL 12 million in profit sharing recognized for March–May.

• Management expected a positive H2, citing market recovery, internal initiatives and July transaction levels returning to pre-pandemic levels.

Financial highlights

• Net revenue was BRL 33 million; gross revenue totaled BRL 36.3 million, including BRL 3.6 million of Itaú operations revenue to accrue.

• EBITDA was BRL 8 million, down BRL 7 million YoY; Q2 EBITDA margin was 24%, and H1 margin was 24.3%.

• Net loss attributable to controlling shareholders was BRL 2.5 million, nearly BRL 7 million lower than the prior-year result.

• Total costs and expenses were BRL 24.9 million, up 3%; remote-work measures, higher contingency provisions and litigation success fees contributed to costs.

Outlook and guidance

• July transaction activity had returned to pre-pandemic levels; management expected H2 to be positive despite ongoing social distancing.

• Management cited market recovery, ongoing launches and digital initiatives as supports for future performance and market-share gains.