BME Posts A Net Profit Of €105.1 Million Through September

30/10/2012

  • Revenues for the first nine months totalled €229.1 million
  • Net profit in the third quarter came in at €31 million
  • Revenue in the third quarter was €70.6 million, down 14.7%
  • Operating costs in the third quarter were down 0.2%, at €24.3 million
  • BME maintains its positive financial performance indicators: ROE and efficiency ratios were 32.4% and 32.8% respectively at September-end
  • BME, leading stock exchange in Europe in terms of financing, at $25.61 billion, and ranked among the top 5 worldwide

BME posted a net profit of €105.1 million in the first nine months of 2012, down 11.3% from the same period a year earlier. Net profit for the third quarter was €31 million.

On 23 July, the trading of securities or financial instruments that involves establishing or increasing short positions on shares admitted to listing was banned. This has affected the performance of those business units which are closely linked to changes in trading volumes: fees for equity and derivate trading and settlement fees. A diversified business model and the positive performance by other business units and products have helped partially offset the adverse effects of this ban.

Revenue in the third quarter was down 14.7% from a year earlier, at €70.6 million, in a context of low trading volumes in all stock exchanges worldwide. In the first nine months of the year revenue was €229.1 million, down 6.3% year on year.

Operating costs in the third quarter totalled €24.3 million, down 0.2% on the previous year while to the end of September these totalled €75.2 million, up 1.6%.

EBITDA in the first nine months of the year totalled €154 million, of which €46.2 million correspond to the third quarter. These amounts represent year-on-year decreases of 9.7% and 20.8% respectively.

Earnings per share for the third quarter was €0.37 while the figure for the first nine months was €1.26.

The main indicators for tracking financial management in terms of ROE and efficiency were 32.4% and 32.8% for the nine-month period, as compared to 35.3% and 30.3% in 2011.

EQUITIES

Revenue from this business unit in the first nine months of the year totalled €86.1 million, down 17.2% from the same period a year earlier. EBITDA for the first nine months was down 22.5%, at €62.1 million. Revenue and EBITDA for the third quarter decreased 26% and 33.3% respectively to €26 million and €18.2 million.

The Equities trading volume in the third quarter was €153.68 billion, down 34.5% year on year and €529.77 billion in the first nine months of the year, down 26.5% year-on-year.

CLEARING & SETTLEMENT

Revenue generated by this unit in the third quarter decreased by 8% year on year to €19.1 million. Revenue to the end of September totalled €60.4 million, up 3.3% year on year. EBITDA was €15.3 million in the third quarter, down 11% from the same period a year earlier and €49.5 million to the end of September, up 2.9% year-on-year.

The number of trades settled during the first nine months was up 7.4% from a year earlier, at 36.2 million, while in the third quarter the figure was 10.7 million, down 9.1% on a year earlier.

LISTING

Revenue in this area to the end of September totalled €16.2 million, down 11.9% from the same period in 2011. When comparing the figures, particularly for the quarter, it is important to recall the strong issuance activity in the Equity unit in the third quarter of 2011 when companies worth €10.2 billion were admitted to market. Partially for this reason, revenues for the third quarter were down 30.5% at €4.7 million and led to 18.5% and 45% declines in EBITDA in the first nine months of the year and in the third quarter, respectively.

Investment flows channelled through the Exchange remained high, with activity focused mainly on shares already listed, in the form of scrip dividends and capital increases. During the quarter some €7.88 billion was channelled through these instruments, 14.4% higher than in the same quarter in 2011. In the first nine months of the year, access to capital via this means for listed companies totalled €19.87 billion, 16.5% higher than in 2011. In terms of investment flows in shares already admitted to trading, it is worth mentioning the scrip dividends carried out by Repsol, Iberdrola and Banco Santander, and BBVA’s capital increase.

Investment flows channelled through BME to the end of September totalled $25.61 billion, which positions it as the leading European stock exchange operator in terms of financing to companies, alongside London ($26 billion), and among the top five in the world, with data from the World Federation of Exchanges (WFE).

MARKET DATA

In this area, Revenue in the third quarter was €8.5 million (+4.6%) and to the end of September it totalled €26.1 million (+7.2%). Operating costs for the third quarter in this area were down 4.7% from the same period in 2011. EBITDA for the same period increased 7.4% to €6.7 million and to the end of September it totalled €20.6 million, up 7.1% year-on-year.

The number of customers connected to BME’s information flow in the third quarter increased by 6.3% year on year.

DERIVATIVES

The number of contracts of derivative products traded in the third quarter increased 10.2% year-on-year to 15.5 million. In the first nine months of the year, the trading volume totalled 52.3 million contracts, up 3.7% from the same period a year earlier.

Revenue from this unit in the third quarter increased by 15.3% from a year earlier, to €6.5 million, while in the first nine months of the year it totalled €19.1 million, up 5.1% year-on-year. EBITDA in the first nine months totalled €10.5 million, up 7.4% on the same period in 2011, while the figure for the third quarter came in at €3.7 million, up 27.1% year-on-year.

FIXED INCOME

Revenue generated from this unit in the third quarter was €1.8 million, up 8.6% year on year. To the end of September revenue increased by 12.8% from the same period a year earlier to €7.1 million. EBITDA for the third quarter increased by 15% from the same year-earlier period to €1.1 million, while to the end of September it was up 18.3% from the same period in 2011, at €4.9 million.

In the third quarter Fixed Income trading came in at €591.17 billion, down 51.6% from the same period a year earlier.

IT & CONSULTING

Revenue in the third quarter in this unit was €3.8 million, down 9.7% year on year. Revenues from the various services provided by this unit through September amounted to €12.1 million, up 1.2% compared to the same period in 2011. EBITDA in this unit was €1.3 million in the third quarter, down 22.7% and €4.3 million to the end of September, up 4.6% from the same period a year earlier.