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- Top line growth driven by higher volumes in the derivatives segment and increased revenues not related to volumes traded
- Adjusted expenses grew 3.5% year-over-year, in line with the OPEX budget for the year
- 2Q16 results impacted by extraordinary items, mainly from total divestment from CME Group shares and expenses related to the proposed business combination with Cetip
BM&FBOVESPA S.A. (ticker: BVMF3) today reported its second-quarter earnings for the period ending on June 30, 2016 (2Q16). In this quarter, revenues reached R$637.9 million, a 3.7% increase compared to the second quarter of 2015 (2Q15). 2Q16 earnings were impacted by extraordinary items mainly related to total divestment from CME Group shares and expenses related to the proposed business combination with Cetip.
BM&FBOVESPA reaffirms its previously announced 2016 budget ranges: (i) adjusted expenses (OPEX) from R$640 million to R$670 million; and (ii) capital expenditures (CAPEX) from R$200 million to R$230 million.
Highlights of the 2Q16:
- Revenues from the BM&F Segment grew 5.5% year-over-year. Average daily volume (ADV) increased 4.0% while average revenue per contract (RPC) decreased 1.3% in comparison with 2Q15;
- Other revenues not related to volumes traded grew 8.1% year-over-year, mainly as a result of adjustments to commercial policies implemented over 2015;
- IFRS net loss (attributable to BM&FBOVESPA shareholders) was R$114.4 million, nonetheless excluding the extraordinary items it would have been a net profit of R$496.8 million; and
- R$215.6 million in interest on capital (R$0.121 per share), totaling 50% of 2Q16 net income excluding impacts related to the divestment from CME Group shares.
Chief Executive Officer of BM&FBOVESPA, Edemir Pinto, said: “On May 20th, we obtained the support of the vast majority of both BM&FBOVESPA’s and Cetip’s shareholders to approve the proposed business combination between the two companies. The transaction is now subject to regulatory approvals and the integration work must only begin when such approvals have been obtained. We are excited by this transformational transaction that will create a unique financial infrastructure company. By combining the strengths of the experienced teams in BM&FBOVESPA and Cetip, the new company will be even better positioned to increase the robustness of the Brazilian capital and derivatives markets and deliver efficiency to clients and market participants. In parallel to this major transaction, we continue to be focused on the implementation of the equities phase of the new integrated BM&FBOVESPA Clearinghouse, having started during this quarter the parallel production process, which is critical to the conclusion of this key project. Finally, aiming to promote the adoption of best practices and to preserve the attractiveness of the companies listed in the Brazilian equity market from a corporate governance standpoint, we opened a public hearing process to discuss enhancements to the rules of our Special Listing Segments – Novo Mercado and Level 2.”
Chief Financial and Investor Relations Officer, Daniel Sonder, commented: “Although we had a few extraordinary items in our accounting results, in essence we continue to execute very strongly on the key financial metrics of our business, with a special focus on expense management. It is noteworthy that in connection with the proposed transaction that will result in the business combination with Cetip, we are holding a significantly higher cash position (coming from the sale of CME Group shares) than would otherwise be necessary to run our business. We intend to preserve this cash position as well as a portion of the Company’s cash generation until the financial settlement of the transaction, which will occur after the regulatory approvals are obtained. This is also the reason behind a payout ratio below the Company’s practices in previous years, and the fact that the share buyback program has not been executed over the last quarters. We are thankful to our shareholders and humbled by their support for the combination with CETIP, and take very seriously the responsibility which has been entrusted to BM&FBOVESPA in the context of this important transaction.”
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