- BME Reached Earnings Of 38.7 Million Euros Up To May
- BME Has A 457 Million Euro Cash-Pile
- BME To Pay A Gross Dividend Of 22 Euro Cents A Share In Addition To The 22 Euro Cents Paid In March
- The Sales/Costs Ratio Is The Best Among The Main European Bourses
- BME Posted Sales Of Over 4.5 Billion Euros In 2002
BME will seek new business opportunities and the strengthening of all markets included in this new company.
"Bolsas y Mercados Españoles reached earnings of 38.7 million euros from January to May 2003, in addition to the 30.2 million euros obtained in the final quarter of 2002, as the Opening Consolidated Balance Sheet was published on September 30, 2002. These results mean BME already has a sound financial structure with which to develop its strategy, initiatives and projects in a flexible and effective way", said Antonio Zoido, Chairman of the Board of BME at today's Annual General Shareholders' Meeting. BME's total assets and value generation, it has a cash-pile of 457 million euros, give the company the necessary size to carry out a successful initial share offering with an attractive yield and liquidity for future investors. Antonio Zoid added that each group company could still develop numerous business opportunities, generate synergies and significantly increase efficiency.
BME will pay a gross dividend of 22 euro cents a share on June 30 which, in addition to the 22 euro cents paid in March, represents a pay-out of 50%. These figures underline the fact that the creation of BME means three things for its shareholders: it provides an essential value generation instrument allowing them to concentrate their investments in the various companies comprising the Spanish securities markets in a single point, it creates an interesting investment vehicle for the future and creates in Spain a leading international company in its sector.
According to the Chairman of the Board, BME's performance, activities and services affect millions of people which involves making sure conditions are the same for all members and investors operating on the various markets, fostering equal opportunities in the sector and ensuring correct market regulation. In line with its responsibility, the company, which wishes to become a benchmark for the Spanish market, aims to be at the forefront of good corporate governance, and to this end we shall direct all our efforts towards adopting the best management practices and providing the market with quality and transparent information which is sure to increase credibility and trust.
Within the framework of the debate on the future of stock markets, Antonio Zoido said that "in terms of size, structure and results, BME compares very favorably with the main European bourses and its sales/costs ratio is the best among these".
SALES
The BME Group, with sales of over 4.5 billion euros in 2002, has the most diversified product range in Europe and a critical mass that enables it to compete on excellent terms at an international level and offer present and future shareholders secure value, future potential and an investment in line with their expectations.
From January to May 2003, BME's equities trading volume totaled 300.154 billion euros, consolidating the company's position as the fourth largest stock market in Europe after London (1.218 trillion euros), Euronext (665.677 billion euros) and Deutsche Borse (424.8 billion euros).
Apart from this important spot market, we would also highlight the size of the derivatives market on which more than 12.3 million contracts were traded from January to May. Also, 1.396 billion warrants were traded in the first five months of the year, a 95% increase on the previous year. Premium trading amounted to 782 million euros, twice as much as the previous year.
In addition, the trading volume of public fixed-income securities reached 1.1 billion euros from January to May, a 20% advance on the same period of 2002. The trading volume in the rapidly expanding private fixed-income market during the same period was 144.995 billion euros. This figure represents a 22% increase on 2002.
INTERNATIONAL PRESENCE
"Extending Spanish markets' international presence is essential and we are going to continue to do this. Alternative, large foreign markets are a necessary reference point for us and we shall closely follow their development and initiatives while being realistic about our size but without subordinations which paralize the Spanish market's own projects", Antonio Zoido said.
Spanish markets are among the most technologically advanced in the world, using computer tools which enable investors from around the world and their intermediaries to access national and international markets in a flexible, simple and transparent way via state of the art IT systems. An example of this is Visual Trader, an instrument reflecting the Spanish market's global growth strategy which will significantly increase the Spanish market's visibility abroad. Visual Trader has signed an agreement with the Italian company TAS which is distributing its products in the Italian market and has also recently entered the Chilean market.
From September, this technological subsidiary will provide access to the world's leading derivatives markets. Also, it will extend its trading hours and maintain the operating system active throughout the night to enable users in Spain and Europe to trade on US derivatives markets which are not easily accessible at present due to the time difference.
Zoido also mentioned the agreement signed recently by MEFF and MexDer, the Mexican derivatives market, enabling the Spanish options and futures market to transfer its technology to its Mexican counterpart and also become a shareholder with a 7.5% stake. The main aim of this agreement is to develop the Mexican Options Market.
Infobolsa and the Mexican Stock Market are about to sign an agreement creating Infobolsa Mexico, with the aim of developing financial information services in Mexico.
"BME operates in fourteen Latin American countries developing joint advisory and technology projects, and co-operation and service provision agreements. Our trading systems are already being used in many countries in the region", Antonio Zoido said.
