BM&FBOVESPA S.A. (BVMF3) today reported fourthquarter earnings ending December 30, 2011. New strategic areas such as Securities Lending, Tesouro Direto, ETFs and High Frequency Trading (HFT) performed well in the quarter. Successful implementation of the derivatives and spot FX modules of the PUMA Trading System and forward momentum on the multi-asset integrated clearing system further boosted the Company’s technological edge.
BM&FBOVESPA announced an adjusted expense1 budget range of R$580 million to R$590 million and a capital expenditure budget range of R$230 million to R$260 million for 2012. The adjusted Opex range equals the range for 2011 as a result of the Company’s cost- cutting improvements.
"We remain focused on capturing the growth opportunities offered by the Brazilian market,” said BM&FBOVESPA Chief Executive Officer Edemir Pinto. “The execution of our investment program to strengthen our IT infrastructure and the launching and development of products and markets, such as ETFs, HFTs and options on single stocks, are aligned with this goal. We are also taking actions to strengthen market supervision, which will help make the Brazilian market more attractive to investors. Mr. Pinto added,“We highly welcome the government’s decision to remove an IOF tax on equity investments by non-residents.”
During 4Q11, net revenues were almost flat year-over-year. This reflected a decline in trading volumes which was offset by a 39.5% increase in other revenues. Expenses were higher as a result of a one-time extraordinary transfer of restricted funds to strengthen the BM&FBOVESPA Market Supervision (BSM) while adjusted expenses were well in line with the Company’s announced budget range. Adjusted EBITDA2margin was relatively stable at65.2% compared to 66.5% in 4Q10. Adjusted net income3 per share declined by 1.0% year-over-year.
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