News

4Q16 Earnings Release

São Paulo, March 15, 2017 - Contax Participações S.A. (BM&FBovespa: CTAX3) announces today its 4Q16 results.

Highlights:

• EBITDA totaling R$226.3 million in 2016, boosted by the sale of Allus Division, which compares to negative EBITDA of R$15.0 million in 2015;
• Adjusted EBITDA of R$7.0 million in 4Q16, with a 1.5% margin, versus negative EBITDA of R$73.1 million and -14.1% margin in 4Q15;
• Gross margin improved to 11.5% in 2016, a 3.4 percentage points advance year over year. In 4Q16, gross margin reached 10.2%, from a negative margin of 1.7% in 4Q15;
• Fulfillment of target for the reduction of idle capacity to 9.6% at the end of 2016 (20.5% at end of 2015);
• Advance in the renegotiation of contracts with suppliers, totaling estimated annual savings of more than R$100 million;
• Evolution of the operational and quality turnaround, maintaining the leadership in the quality ratios for strategic clients;
• Sale of Allus for the enterprise value of US$192 million, with subsequent repayment of R$254 million in financial debts;
• Progress in the Ownership Simplification process, with the incorporation of Ability, Trade Marketing arm, into Contax-Mobitel, consolidating the multi-channel service model for clients - on line (voice and digital) and off line (trade/on-site);
• Progress in the Ownership Simplification process, with the incorporation of Ability, Trade Marketing arm, into Contax-Mobitel, consolidating the multi-channel service model for clients - on line (voice and digital) and off line (trade/on-site);
• Governance enhancement: migration to BM&FBovespa‘ Novo Mercado special segment and Board of Directors with 83% independent members, considering the latest changes.

To see the Earnings Release, please click here.

Conference Call in Portuguese

March 16, 2017
Time: 09:00 a.m. (US EDT) / 10:00 a.m. (Brasília)
Connection Phone: +55 (11) 3127 4971 or +55 (11) 3728 5971
Code: Contax
Webcast: click here

Replay: Available until March 22, 2017
Connection Phone: +55 (11) 3728 5820
Code: 2393985