BME’s net profit totals 34.9 million Eeros in the Third Quarter

BME’s net profit totals 34.9 million euros in the Third Quarter

30/10/09

Bolsas y Mercados Españoles (BME) posted a net profit of €34.9 million in the third quarter, which is the best quarterly result so far this year, excluding extraordinary items and exceeds the figures for the two previous quarters by 4.1% and 1.9% respectively, although is 17.6% down from the same quarter a year earlier. The net profit in the first nine months of the year totalled €116.2 million, down 20.1% from the same period in 2008.

These solid earnings are an indication of just how resilient the BME business model is to a period of prolonged economic weakness. The improvement in earnings is fruit of the contribution to trading volumes from the overall stock market rally, along with a tight control of operating expenses, which were reduced to €24.4 million.

Revenue in the third quarter came in at €75.7 million, down 7.6% from the same period a year earlier while at the end of September revenue was €239.4 million, down 9.6% from the same period in 2008.

Earnings per share in the third quarter were €0.42 and the figure for the first nine months of the year came in at €1.40.

As for return on equity, BME continues to outshine its peers, making it a benchmark for both the sector and the market. ROE for the quarter and for the first nine months stood at 29.8% and 33% respectively.

In terms of efficiency, there was an improvement in comparison with the previous quarter, with a ratio of 32.2% compared to 33.8%. As a result, efficiency levels are getting closer to those achieved last year, at 29.8%.

 

Revenue from this business unit to the end of September 2009 totalled €92.4 million, down 19.6% from the same period a year earlier. EBITDA in the first nine months of the year totalled €66.9 million, down 24.1% from the same period a year earlier.

In the third quarter revenue from this unit came in at €32.9 million, down 4.4% from the same period in 2008 while the EBITDA figure in the quarter was €24.6 million, down 4.3% from the same period a year earlier.

As regards costs, in the third quarter they came down by 4.6% in comparison with the same period in 2008 to €8.3 million. In the first nine months of the year, costs were down by 4.7% from the same period a year earlier, at €25.5 million.

In the third quarter the number of trades was 5.8% higher than in the previous one. The third quarter saw a consolidation of the trading trends registered in the previous quarter, with turnover, the number of trades and the number of shares traded all showing increases on the first quarter of 2009. The comparison with the second quarter of 2009 shows mixed results, with the number of trades increasing but with turnover and the number of shares traded dropping. This is explained by the seasonal nature of volumes during August and part of September.

CLEARING AND SETTLEMENT

As regards the Clearing and Settlement unit, revenue to the end of September totalled €49.7 million, down 20.5% from the same period in 2008. EBITDA for the same period totalled €38.8 million, down 24.2% from the same period a year earlier.

Revenue generated by this unit in the third quarter fell 13.9% from the same period a year earlier to €16.7 million. EBITDA in the same period dropped 17.3% to €12.9 million.

Nominal amounts registered at the end of the third quarter totalled €1.5 trillion, taking into account both Equity and Fixed Income markets (Government and private). This represents a 13.5% increase from the third quarter of 2008.

The average daily cash value settled over the same period was €331.7 billion, a 14.6% increase on the same period in 2008.

DERIVATIVES

Revenue from this unit to the end of September decreased by 8.7% from a year earlier to €19.6 million. EBITDA for the same period decreased by 22.5% from the same year-earlier period to €10.6 million.

In the third quarter revenue was down 12.3% on the same period a year earlier, at €6.3 million. The EBITDA figure for the same period came in at €3.4 million, down 26.1% from the same period a year ago.

Trading volumes in this unit in the first nine months of the year increased by 19.8% from the same year-earlier period in terms of number of contracts traded. In the third quarter of the year the number of contracts grew by 12.7% from the same period in 2008. The open interest at 30 September 2009 was 13.5 million contracts, 38.5% more than a year earlier.

INFORMATION

In this area, revenue to September decreased by 11.9% from a year earlier to €24.9 million. EBITDA for the same period was down by 14.8% from a year earlier to €19.8 million.

In the third quarter revenue decreased by 15.8% from a year earlier to €7.9 million and EBITDA for the same period came down by 25.4% to €5.8 million.

The number of clients connected to the information services provided by BME was unchanged on previous quarters, which represents an increase of 6.1% from the previous year.

FIXED INCOME

Revenue generated from the Fixed Income Market to the end of September decreased by 2.5% from the same period a year earlier to €4.9 million. EBITDA for the first nine months was down1% from the same period in 2008, at €2.7 million.

In the third quarter revenue came in at €1.7 million, up 3.8% from the same period a year earlier. EBITDA for the third quarter increased by 20.1% from the same year-earlier period to €1.1 million.

Trading volumes in the unit for the first nine months of the year was €3.03 trillion, up 87.2% from the same period a year earlier. In the third quarter, trading volumes increased by 30.2% from the same year-ago period to €811.37 bn.

LISTING

Revenue in this area in the nine months to September came in at €19.8 million, down 4.8% from the same period a year earlier, while EBITDA for the period totalled €12 million, down 6.1% from the same year-earlier period.

In the third quarter revenue came in at €5.7 million, down 14.7% from the same period a year earlier while EBITDA for the same period was €3.1 million, a 22% decrease from the same period in 2008.

The total market capitalisation of companies listed on BME’s markets at 30 September stood at €1.04 trillion, up 2.4% year-on-year.

IT & CONSULTING

Revenue in this business unit in the nine months to the end of September increased by 8.5% to €12.1million compared to the same period in 2008. EBITDA to the end of September totalled €4.4 million, down 7.4% from the same period a year earlier.

In the third quarter revenue was €4.4 million, up 29.6% from the same quarter in 2008. EBITDA in this area in the third quarter came in at €2 million, up 41.2% from the same year-ago period.

THIRD QUARTER HIGHLIGHTS

On 10 September 2009, the company paid out its first interim dividend charged against 2009 earnings. The total amount was €33.3 million, equivalent to €0.4 gross per share (€0.328 net). Regarding distribution of the second interim ordinary dividend against 2009 results, BME’s Board of Directors took the decision to bring it forward from last year date and make the distribution effective on 22 December 2009.

September saw completion of the transfer of those securities still trading on the open-outcry market to a new electronic trading device, a move that aims to boost the shares’ liquidity and increase and improve their transparency and accessibility. There are currently 41 stocks trading on this new electronic trading system.

South Africa’s central securities depository (CSD), Strate, is set to become the first non-European member of Link Up Markets. Its incorporation will enable Link Up Markets to widen its geographical coverage, which will now include nine CSDs.

On 21 September, the Board of Directors at Iberclear approved an amendment of its Regulations, subject to authorisation before coming to effect, with the following objectives in mind: (i) To regulate Iberclear’s services to the Participant entities that involve the settlement and registration of transactions in securities listed on the Stock Exchanges but executed over the counter and (ii) to establish the provisions of the agreements stipulated in paragraph 7 of Article 44 bis of the Spanish Securities Market Act 24/1988 of 28 July 1988.

On 20 July, shares in Grupo Empresarial San José were listed, and on 15 July so were those of Zinkia Entertainment, admitted to the MAB’s Growth Company Segment.

A new range of services called CONFIDENCENET has been created aimed at increasing the number of lines of business and intended to facilitate compliance with the various legal requirements established by sector regulators. BME CONFIDENCENET encompasses the new Integrated Reporting Service (IRS) and SICAM service (providing clients with greater control over market abuse and suspect transactions) as well as back-office solutions (middle-office breakdowns, BIA and Risk Assessment).

 

EQUITIES