19.

Earnings per share

a) Basic

Basic earnings per share are calculated by dividing the profit attributable to shareholders of PagSeguro Digital by the weighted average number of common shares issued and outstanding during the years ended December 31, 2018, 2017 and 2016:


	December 31, 2018		December 31, 2017		December 31, 2016
Profit attributable to shareholders of the Company		909,267		478,781		127,186
Weighted average number of outstanding common shares		317,647,562		262,288,607		262,288,607

Basic earnings per share—R$		2.8625		1.8254		0.4849

b) Diluted

Diluted earnings per share is calculated by adjusting the weighted average number of common shares outstanding to assume the conversion of all potential common shares with dilutive effects. The share based LTIP is the Company’s only category of potential common shares with dilutive effects. In this case, a calculation is done to determine the number of shares that could have been acquired at fair value.


	December 31, 2018			December 31, 2017		December 31, 2016
Profit used to determine diluted earnings per share		909,267			478,781		127,186


Weighted average number of outstanding common shares		317,647,562			262,288,607		262,288,607
Weighted average number of shares under options		2,581,716			—		—
Weighted average number of shares that would have been issued at average market price		(2,102,607	)		—		—

Adjusted number of shares		318,126,671			262,288,607		262,288,607

Diluted earnings per share—R$		2.8582			1.8254		0.4849