BME’s net profit in 2011 reached €155.1 Million, up 0.6% from 2010

BME’s net profit in 2011 reached €155.1 Million, up 0.6% from 2010

29/02/2012

Stripping out extraordinary items, BME’s net profit was 3.3% higher than in 2010

  • Operating costs in 2011 fell by 4.7% and EBITDA remained flat
  • In 2011 revenue totalled €321.4 million, down 1.5% on 2010
  • The efficiency ratio (30.6%) is around 14 points above the sector average
  • Return on equity (ROE) was 35.1%, 17 points above the sector average
  • Net profit totalled €36.7 million in 4Q2011, 2.3% lower than in the same period in 2010

BME reported net profit of €155.1 million in 2011, up 0.6% year-on-year. Stripping out extraordinary items recorded in both years, the aggre­gate figure was 3.3% higher than in 2010.

Operating costs in 2011 dropped 4.7% year-on-year to €98.3 million while EBITDA remained flat at €223.1 million.

In 2011 revenue totalled €321.4 million, down 1.5% on 2010. Excluding extraordinary income, revenue was 0.4% higher than in 2010.

Net profit in the fourth quarter totalled €36.7 million, 2.3% lower than in the same period in 2010 despite sharp declines in Equity and Derivatives volumes due to the ban on short selling. Operating costs in the fourth quarter dropped 4.8% year-on-year and totalled €24.3 million. Revenue stood at €76.9 million in the fourth quarter, a year-on-year decrease of 5.7%.

The main financial performance indicators show positive trends for 2011. The efficiency ratio was 31.6% in the fourth quarter, compared with 31.3% in 2010, meanwhile the ratio was 30.6% and 31.6% for 2011 and 2010, respectively. Return on equity (ROE) was 35.1% in 2011 and 34.3% in 2010, and 33.1% and 33.2% for the fourth quarters of 2011 and of 2010 respectively.

EQUITIES

Revenue in the Equity business unit in 2011 totalled €133.3 million, down 3.4% year-on-year. EBITDA fell by 4.6% to €100.9 million in the period.

The ban on short selling in place since August and throughout the final quarter of 2011 undermined cash equity market turno­ver and led to a liquidity squeeze in the order book, resulting in bid-offer spreads widening and an increase in implicit transac­tion costs for investors.

SETTLEMENT

Reve­nue contributed by the unit’s activities relating to Settlement rose by 4.8% to €78.9 million in 2011, and by 2.6% to €20.4 million in the fourth quarter.

Operations settled in 2011 grew by 9.4% year-on-year to 45.6 million, compared with 41.7 million in 2010.  The number of operations settled in the fourth quarter increased by 0.6% year-on-year to 11.9 million.

LISTING

Revenue in the Listing unit decreased by 6.6% to €5.9 million in the fourth quarter and rose by 6.1% to €24.3 million in the year. EBITDA in the fourth quarter amounted to €3.5 million, a year-on-year decrease of 5.3%, while EBITDA in 2011 totalled €14.9 million up 16.4%.

Equity market investment flows channelled through the exchange in 2011, including shares already admitted to trad­ing and new shares admitted, amounted to €37.7 billion. This reflects growth in investment flows in both newly-listed com­panies and companies already admitted to trading. The total implies a 35.1% increase compared to investment flows chan­nelled through the exchange in 2010, the fourth-highest figure in the history of the Spanish securities market.

The total volume of new issues admitted to trading on the Corpo­rate Fixed income market in the fourth quarter was €103 million, a 113.5% year-on-year increase.

MARKET DATA

The Market Data unit posted revenue of €9.1 million in the fourth quarter and €33.4 million in 2011, with year-on-year increases of 14.6% and 7%, respectively. EBITDA totalled €7.1 million in the fourth quarter (+15.8%) and €26.3 million in the full year (+6.3%).

The number of customers in the fourth quarter continued to grow (as in previous periods), up 11.5% year-on-year. The number of customers with a direct connection to BME’s infor­mation servers increased by 17.2% year-on-year.

DERIVATIVES

Revenue in the Derivatives unit fell by 19.1% to €5.4 million in the fourth quarter, and EBITDA for the same period fell by 32.5% to €2.6 million. In 2011 revenue totalled €23.6 million (-10.1%) and EBITDA was 12.4 million (-19.7%).

The total volume of derivative contracts traded in 2011 amounted to 67.6 million contracts, 3.8% fewer than in the previous year. In the final quarter there were declines in all products, most notably IBEX 35® futures and options, where trading  was ham­pered by the ban on short selling in the financial sector, in place since August.

Futures contracts on individual stocks saw volumes bounce back in 2011, up 40.1% year-on-year, despite the slight setback in the fourth quarter.

FIXED INCOME

Revenue from trading in Fixed Income products in the fourth quarter totalled €1.7 million, down 4.8% year-on-year. EBITDA at this unit fell by 9% to €987,000 in the fourth quarter. In 2011, revenue rose by 7.3% to €8 million and EBITDA totalled €5.1 million (+6.2%).

Total turnover for the year at this unit amounted to €5.6 trillion, 41.4% higher than in the previous year. In the fourth quarter, trading volume in the Fixed Income unit amounted to €1.26 trillion, a 17.9% year-on-year decline, caused mainly by the fall in repos and simultaneous operations in both the Fixed Income market and the Public Debt. 

IT & CONSULTING

IT & Consulting revenue rose 10.4% year-on-year in the fourth quarter to €4.7 million. Revenue from the various services provided by this unit in 2011 amounted to €16.7 million, up 15.7% on the previous year. EBITDA was €2.1 million in the fourth quarter and €6.2 million in 2011, with year-on-year increases of 18.3% and 48.6%, res­pectively.

Trading via the VT network rose by 2.9% in the fourth quarter, despite the impact of the ban on short selling on trading volumes in the market. In 2011 as a whole, trading via the VT network was 29.8% higher than in 2010 and the number of orders increased by 68.5% in the quarter. Terminals installed at clients’ premises climbed 15.5% in the year.