Cielo SA decided to discontinue its guidance of net income for the year 2019, without declaring new estimates.
The payment processor said in January that it expected net income to fall to between 2.3 billion Brazilian reais and 2.6 billion reais in 2019.
"This decision reflects the competitive environment in which Cielo is inserted and has become fiercer over the last months which reflected in new offers announced and implemented by other companies in the sector," the company said in a statement.
Additionally, Cielo slashed its dividend payout and interest on capital for the second, third and fourth quarters of 2019 to 30% of the net income from 70%.
The dividend cut aims to give the company room to improve its capital position, Reuters reported, citing CEO Paulo Caffarelli.
He also told the newswire in an interview that the company may invest more in technology, expand its services and products and even consider acquisitions.
As of May 24, US$1 was equivalent to 4.03 Brazilian reais.