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BM&FBOVESPA S.A. (ticker: BVMF3) today reported fourth quarter earnings ending December 31, 2013 (“4Q13”). Total revenue went up 3.5% between 2013 and 2012, despite a 3.7% decrease in 4Q13 compared to the previous year fourth quarter (“4Q12”).
Additionally, BM&FBOVESPA is reaffirming its previously announced budget ranges: (i) adjusted expenses of R$595 million to R$615 million for 2014; and (ii) capital expenditure (“Capex”) budget ranges of R$230 million to R$260 million for 2014 and R$190 million to R$220 million for 2015.
Highlights of the 4Q13 and 2013 results:
- In the BM&F segment, the average rate per contract (“RPC”) grew 20.3% in 4Q13 compared to 4Q12, reflecting changes to the mix of contracts traded and higher prices of contracts linked to the FX rate;
- In the Bovespa segment, average daily trading value (“ADTV”) fell 5.8% in 4Q13 compared to the previous year’s fourth quarter, mainly reflecting a decrease in turnover velocity, which reached 64.4% in 4Q13;
- Revenues not related to volumes traded grew 5.3% in 4Q13 over 4Q12, partially offsetting a decline in the performance of the Bovespa and BM&F segments;
- Adjusted expenses reached R$575.8 million in 2013, up 2.2% compared to 2012, significantly below official inflation in the period;
- Adjusted net income reached R$341.9 million in 4Q13, 9.9% decrease from 4Q12 (adjusted EPS of R$0.180 in 4Q13, 8.6% decrease from 4Q12);
- Real Estate Investment Funds’ (“FIIs” or Fundos de Investimento Imobiliários) ADTV in 2013 reached R$31.7 million, up 116.4% over 2012;
- The average financial value of open interest positions in Securities Lending increased 27.9% between 2013 and 2012;
- The financial value of agribusiness credit bills (“LCAs”) registered at BM&FBOVESPA reached R$89.9 billion in December 2013, 146.4% growth compared to December 2012;
- R$145.7 million in dividends, totaling 80% of 4Q13 GAAP net income.
Chief Executive Officer of BM&FBOVESPA, Edemir Pinto, said: “In 2013, we remained focused on delivering our strategic plan, which will foster future growth and strengthen our competitive position. As part of this plan we completed the transition of our trading infrastructure into a state-of-the-art platform by delivering the equities segment in the PUMA Trading System; we changed the fee structure for equities, with volume incentive mechanisms; and we elaborated a set of proposals to develop an access market for SMEs.” Mr. Pinto added: “We also made significant advances in the new integrated clearinghouse, with the start of testing of the derivatives phase, which is planned to be deployed in the first half of 2014. These investments, coupled with our focus on client and product enhancements, will increase market efficiencies and support future growth for the Company.”
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