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Bolsas y Mercados Españoles (BME) posted a net profit of €36.1 million in the first quarter 2010 – corresponding to €0.43 per share – up 8% on the same period in 2009.
The net profit figure is the best quarterly result achieved by the company since 2008. Thanks to a diversified model and efficient management of costs, BME has been well placed to benefit from the gradual recovery of the markets since the financial crisis started.
With revenue in the first quarter 2010 of €77.5 million, up 7% from the same period a year earlier, and operating expenses of €24.5 million, similar to those in 2009, BME was able to boost EBITDA by 9.9% to €53.1 million.
Key ratios remained high and are a sector benchmark. The efficiency ratio, which expresses expenses as a percentage of revenue, showed improvement, at 31.6%. The Return on Equity also improved from 27.6% a year ago to 30.5% at the end of the quarter.
EQUITIES
In the first quarter 2010, the number of trades executed, including shares, exchange-traded funds and warrants, totalled 9.5 million, up 25.9% from the same period in the previous year. Equity trading to March totalled €229.46 billion, up 23.9% from the previous year.
Revenue from the Equities business unit in the first quarter was up 21.1% from the same period a year earlier, to €34.7 million. Meanwhile, EBITDA rose by 32.7% to €26.7 million. These figures represent increases of 9.6% and 16.5% in revenue and EBITDA, respectively, compared to the previous quarter.
CLEARING AND SETTLEMENT
The trading volume in this business area for the first quarter of 2010 grew by 8% in comparison to the same period the previous year, at €1.51 trillion.
First-quarter revenue generated from the activities performed by this business unit amounted to €17.4 million (+8.6%), while EBITDA stood at €13.9 million (+11%).
LISTING
The capitalisation of the companies listed on the markets managed by BME stood at €1.08 trillion at 31 March 2010, up 48.7% on the previous year.
The outstanding balance on BME’s Corporate Debt market was €866.27 billion at the end of March, up 1.6% on the same date in 2009.
INFORMATION
The Information business unit continued the correction started in the second half of 2009 as a result of the impact of the crisis on the brokerage sector. As a result, the unit’s revenue in the first quarter came down by 12.6% from the same period a year earlier to €7.7 million. EBITDA for the same period reached €6.1 million, down 16.5% on the same period in the previous year.
This business unit continues to broaden its content, adding new instruments on the warrants markets and on the Alternative Equity Market (MAB), and five new IBEX indices. As regards content, a new Investment Fund Subscription and Redemption platform and a new Fixed Income platform (SEND), mainly for retail investors, will be implemented that will form part of BME’s Information unit.
DERIVATIVES
Trading volume in the derivatives business unit to March showed mixed results. While the trading volume of main IBEX 35 futures increased by 10.3% and by 23.3% for mini contracts, the trading volume of IBEX 35 options decreased by 32.5%. Despite this, the total notional value grew by 45.7%.
Revenue in the first quarter dropped 2.4% from the same period in the previous year to €6.4 million. The 10% cut in operating costs relative to March 2009, allowed EBITDA to finish the quarter up 3.9% at €3.7 million. Revenue grew by 2.2% while EBITDA increased by 21% compared to the previous quarter.
FIXED INCOME
In the first quarter of 2010, trading volume in the Fixed Income business unit totalled €643.41 billion, 37.7% down on that reported for the same period in 2009, mainly due to weaker trading in the Corporate Debt segment of held-to-maturity, repos, and reverse-repo trading.
On the contrary, trading in the Public Debt market consolidated the trend started in the second half of 2009. In the first quarter of 2010, trading volume in the Public Debt market reached €53.48 billion, up 50.1% on the same period a year earlier.
IT & CONSULTING
In the first quarter of 2010, activity in the IT & Consulting business unit centred on the development of new business lines and the implementation of technological upgrades in various platforms.
Revenue in this unit came in at €3.4 million, down 13.2% on March 2009, while operating costs grew by 2%.
