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- In 2008 BME’s revenue was €352.9 million, down 7.9% from the year 2007.
- EBITDA in 2008 came in at €250.02 million, down 12.2% from a year earlier.
- Net profit in the fourth quarter of 2008 was €45.23 million, up 6.7% from the third quarter.
- BME’s earnings per share for the year stood at €2.28.
Bolsas y Mercados Españoles (BME) recorded a net profit of €190.7million in 2008, down 5.2% from 2007 and up 46.1% on the net profit posted in 2006.
The financial year was marked by great market volatility and a progressive deterioration in the global economic scenario especially in the financial sector. However, BME’s integrated business model - efficient and effective in terms of costs control and diversified into seven business areas - has helped to cushion it against the impact of lower trading volumes. The solid results bear out the strength of the BME business model.
The company reported revenue in 2008 of €352.9 million, down 7.9% from a year earlier. Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) were €250.02 million, down 12.2% from 2007.
In the fourth quarter 2008, net profit at BME came in at €45.23 million, up 6.7% from the third quarter, despite difficult economic conditions, and down 10.5% from the same period a year earlier, which was €50.54million.
Earnings per share stood at €2.28 in 2008 and at €0.54 in the fourth quarter. The company finishes the financial year setting an example in terms of solvency, liquidity, profit margin, efficiency and return on equity.
The Return on Equity ratio (ROE) for 2008 was 29.2%, compared to 25.7% at the end of 2007 and 32.9% in the fourth quarter.
EQUITIES
Revenue from equities in 2008 was €150.9 million, down 13.2% from a year earlier. EBITDA fell 17.6% in the same period to €114.7 million. Revenue in the fourth quarter 2008 decreased by 19% to €35.9 million, which coupled with an increase in operating costs brought EBITDA to €26.4 million, down 24.8% from the same period a year earlier.
In 2008 the number of trades on the market, including those executed in shares, exchange-traded funds and warrants, grew by 5.9% from the year 2007, reaching a
record high of 37.5 million. The fourth quarter saw an increase of 6.1% from the same period a year earlier, to 9.8 million trades.
The equities trading volume in 2008 came down by 25.5% to €1.25 trillion. The 127.2 bn shares traded during the year represented a 3.7% increase from 2007.
CLEARING AND SETTLEMENT
Revenue in 2008 decreased by 10% from a year earlier to €83 million. EBITDA for the same period was €67.9 million, down 12.6% from 2007. In the fourth quarter 2008 revenue came in at €20.5 million, down 14% from the same period a year earlier while EBITDA fell 15.7% to €16.7 million in the quarter from a year earlier, after including the unit’s operating costs.
Nominals registered at the end of 2008, including equities, private fixed income and public debt grew by 9.3% from a year earlier to €1.36 trillion.
LISTING
EBITDA in this unit in 2008 came in at €17.5 million, down 12.8% from a year earlier. Revenue in 2008 was €28.4 million, down 6.9% from the same period a year earlier while revenue for the fourth quarter of 2008 came in at €7.6 million, down 9.4% from the same period a year earlier.
The capitalisation of the companies listed on the BME markets as at 1 December 2008 totalled €784.94 bn, down 43.3% from a year earlier.
The number of SICAVs listed on the Mercado Alternativo Bursátil (MAB) as at 1 December 2008 stood at 3,360, up 2.3% from a year earlier.
INFORMATION
Revenue in 2008 totalled €38.1 million, up 13.4% from a year earlier. EBITDA for the same period came in at €31.4 million, which represented a 20.3% increase from the previous year.
In the fourth quarter 2008 revenue reached €9.8 million, up 9.9% from a year earlier while EBITDA was €8.1 million, up 17.9% from a year earlier.
Average monthly subscriptions increased by 4.8% to 168,300 in 2008 and by 4.1% in the fourth quarter, from an average of 161,200 in 2007 to 167,900.
DERIVATIVES
In the fourth quarter 2008 the trend in trading volumes reported by this business area was favourable. The number of traded contracts grew by 25.8% from the same quarter the previous year.
The unit’s performance in 2008 was similar. The trading volume in practically all products increased, bringing the trading volume for the year to a total of 83.4 million
contracts, up 60.9% from a year earlier. Highlights include Futures on Stocks, which grew by 117.1% in 2008 compared to 2007, followed by Options on the IBEX35, which increased 46.1% from a year earlier.
Because margins vary depending on the product traded, the level of activity has not had its corresponding reflection in the unit’s results. Revenue for 2008 increased by 0.7% from 2007 to €28.8 million.
FIXED INCOME
This business unit includes exclusively fixed income trading. Revenue generated by the settlement and admission to listing of fixed income securities falls under the headings of Listing and of Clearing and Settlement respectively.
Revenue in this business area in 2008 was €6.6 million, up 4.8% from a year earlier while EBITDA came in at €3.5 million, up 17.6% from a year earlier. Revenue in the fourth quarter increased by 0.9%, to €1.6 million.
Fourth-quarter revenue rose by 172%% from the same period a year earlier to €943.18 bn. Revenue for the year 2008 came in at €2.6 trillion, up 96.6% from a year earlier.
IT & CONSULTING
Revenue in this business area in 2008 was €16.4 million, up 11% from a year earlier while in the fourth quarter revenue came in at €5.2 million, up 12% from a year earlier. EBITDA in this unit for the fourth quarter was €2.9 million, up 19.3% from the same period a year earlier while EBITDA for the year 2008 increased by 12.7% to €7.7 million.
FOURTH QUARTER HIGHLIGHTS
At its 18 December 2008 meeting, BME’s Board of Directors agreed to pay out a gross total in dividends against 2008 profit of €82.1 million, equivalent to a gross €0.986 per share. The interim dividend was paid out on 29 January 2009.
Normally, the company pays out its dividend in two parts, the second of which is paid after the General Shareholders’ Meeting. The interim dividend for 2008 approved by the Company’s Board of Directors is 50% of the total ordinary dividend for 2007.
On 4 December, 1,598 million shares of Banco Santander, with an issue value of €4.5, were admitted to listing, bringing the total amount to €7.19 bn, the largest capital increase in the history of the Spanish stock market.
The assets managed by the ETFs that are mainly traded on the Spanish market have risen from €950 million to €1.53 bn in 2008.
The number of warrants listed for trading in 2008 was 9,827, a 40% increase from a year earlier. This is a new annual record for issues admitted to trading in this segment.
The outstanding balance of fixed income rose 8% from December 2007 to December 2008, and stood at €819.6 bn. Asset-securitisation bonds were the assets that
registered the highest growth, with an outstanding balance of €275.8 bn, up 29.6% from 2007, along with covered bonds, which increased by 14.9% to €325.6 bn.
In the fourth quarter of 2008, the volumes in the Derivatives business line continued to grow. The total number of contracts traded grew 25.8% compared with the same quarter the previous year. In all products, the volume of growth, in percentage terms, has been in double digits, with the exception of IBEX 35® futures, which declined by 14.9%. The number of transactions also increased by 9.8%.
