BM&FBOVESPA S.A. (BVMF3) today posted a solid bottom line performance for the third quarter ending September 30, 2011, thanks to double-digit growth in equity and derivatives trading volumes with a record showing in High Frequency Trading (HFT) and a 6.6% year-over-year drop in adjusted operating expenses (Opex).
BM&FBOVESPA also announced it is revising lower its 2011 budget range for adjusted Opex to R$580 million - R$590 million, down from R$615 million - R$635 million previously announced, mainly from improvements in internal expense tracking processes, stricter policies for expense allocation and reprioritization of activities. The 2011 Capex budget is also being revised downward to R$180 million - R$210 million.
“The third quarter was marked by crises in the US and Europe. Amidst this backdrop, we stayed the course, improved our financials and focused on our long-term growth program whilst market volatility positively impacted trading volumes,” said BM&FBOVESPA Chief Executive Officer Edemir Pinto. “We also launched our state-of-the-art multi-asset trading platform (PUMA) starting with the derivatives segment, putting BM&FBOVESPA on par with our top global peers. We now expect to deliver equity and fixed-income modules of PUMA throughout 2012.”
Net revenues rose 0.9% over 3Q10, mainly due to strong trading volumes, notwithstanding extraordinary income of about R$40 million from the settlement of public offerings in 3Q10 which drove down the year-over year increase. Reduced Opex contributed directly to stronger adjusted EBITDA margins, which reached 72.1%, compared to 69.1% in 2Q11 and 70.4% in 3Q10. Adjusted net income2 totaled R$399.6 million, a 2.7% increase over 3Q10. Adjusted EPS rose 5.9% over 3Q10, reflecting the Company’s share buyback.
Other Operating and Strategic Highlights
- Implemented new fee structure eliminating internal cross-subsidies, making prices more comparable to international peers and strengthening competitive position
- PUMA Trading System represents significant upgrade in state-of-the-art trading technology, boosting efficiency and competitiveness
- Payment of R$233.6 million in dividends was approved, accounting for 80% of the GAAP Net Income in 3Q11
Click here for full details.
