BME posts a Net Profit in the Third Quarter of €40.5 million, up 25.9% from the same period in 2010

BME posts a Net Profit in the Third Quarter of €40.5 million, up 25.9% from the same period in 2010

28/10/2011

  • Revenue in the third quarter increased by 16% yoy to €82.8 million
  • Net profit in the first nine months totalled €118.4 million, up 1.6%
  • Operating costs to the end of September down 4.7%, at €74 million
  • EBITDA in the third quarter reached €58.4 million, (+22.9%) and €170.5 million in the first nine months (+2%)

BME posted a net profit of €40.5 million in the third quarter, up 25.9% from a year earlier and up 11% from the previous quarter.

The third quarter featured extreme volatility and uncertainty, fuelled by the debate regarding the economic situation and the need to bail out certain countries in the euro zone, bank recapitalisation and the sovereign debt crisis. This situation has affected market volumes positively, offsetting the generalised correction in share prices, the seasonal element of summer in trading, and the negative impact on trading volumes of the ban on short selling.

The net profit posted by BME in the first nine months totalled €118.4 million, up 1.6% on the previous year. Stripping out extraordinary items recorded in the second quarters of both years, the net profit figure represents a 4.7% increase from a year earlier.

Revenue in the third quarter was up 16% from a year earlier, at €82.8 million and €244.5 million in the first nine months, in line with the figure for the same period in 2010 (-0.1%). Excluding extraordinary items, revenue to the end of September was up 2.5% from a year earlier.

Operating costs in the third quarter totalled €24.4 million (+2.4%) and €74 million for the first nine months of the year, down 4.7%.

EBITDA in the third quarter grew by 22.9% year on year to €58.4 million. EBITDA in the first nine months of the year was up 2%, at €170.5 million, up 3.4% after adjusting for extraordinary items in both fiscal years.

The trend followed by the main financial indicators is positive. The efficiency ratio to the end of September was 30.3%, compared to 31.7% in the same nine-month period in 2010, improving more than one percentage points the ratio. This enabled the group to maintain its difference of over 15 points above the sector average.

ROE for the first nine months of 2011 and 2010 stood at 35.3% and 34.1% respectively, more than 20 points above the sector average.

EQUITIES

Revenue from this business unit in the first nine months of the year remained stable in comparison with the previous year, at €104 million, while it increased 17.4% in the third quarter to €35.1 million. EBITDA was up 24.9% in the third quarter, at €27.3 million.

In the third quarter the number of trades increased by 46.3% year on year while in the first nine months they increased by 21.5%. Cash equity market turnover volume in the third quarter €234.8 billion, up 8.9% year on year and €720.7 billion in the first nine months of the year, down 3.2%

CLEARING & SETTLEMENT

Revenue generated by this unit in the third quarter increased by 24.6% year on year to €20.7 million. Revenue to the end of September totalled €58.5 million, up 5.5% year on year. EBITDA was €17.2 million in the third quarter, up 29.6% on the year and it was €48.1 million to the end of September, up 5.9%.

The nominal amount registered in the first nine months in Equity and Fixed Income (private and public) through to September 2011 was €1.6 trillion, representing year-on-year growth of 4.9%.The number of trades settled during the third quarter was up 33.8% on the previous year, at 11.8 million trades. The number of trades settled during the first nine months was up 12.8% from a year earlier, at 33.7 million, in comparison with 29.9 million in the same period in 2010.

LISTING

Investment flows channelled through the stock exchange, including shares already admitted to trading and new shares admitted, totalled €35.8 billion to the end of September. This is the fourth highest figure ever recorded for the Spanish market and the highest since 2007. Funds flows in equities already listed in the second quarter of 2011 include the Caixabank and Metrovacesa’s capi­tal increases and BBVA’s bond conversion. On July 5th the shares of DIA were admitted to trading, followed by the Bankia stock, on July 20th and shares of Banca Cívica, on July 21st.

As a result of this increase in activity, revenue in this area in the third quarter came in at €6.8 million, up 22.4% year on year while in the first nine months of the year they totalled €18.3 million (+11%). EBITDA for the third quarter was €4.5 million, up 45.4% year on year while to the end of September it was up 25.3%, at €11.4 million.

MARKET DATA & INFORMATION

In this area, Revenue in the third quarter was €8.1 million (+4.8%) and to the end of September it totalled €24.3 million (+4.4%).

The number of customers connected to the Spanish market’s information flow continued to rise, in line with preceding quar­ters. In the third quarter the number of customers with a direct connection to BME’s information servers increased by 14.3% year on year.

DERIVATIVES

Revenue from this unit in the third quarter decreased by 4.1% from a year earlier, to €5.7 million, while in the first nine months of the year it totalled €18.2 milion, down 7.1%. EBITDA in the first nine months was €9.8 million, down 15.3%.

Total contracts of derivative products traded slumped 10.2% year-on-year in the year’s third quarter, although all products except equity options posted increases. In the first nine months of the year, volume was 1.2% higher than last year.Trading in IBEX 35® futures advanced 11% year-on-year in the third quarter, while trading in Mini futures contracts and IBEX 35® options increased by 33.9% and 22.3% year-on-year in the third quarter, respectively, driven by robust activity in the first part of the quarter and des­pite the negative impact on IBEX 35® futures trading volumes of the ban on the short selling of financial sector companies.

FIXED INCOME

This business unit includes only trading in Fixed Cash Income trading. Revenue generated from this unit in the third quarter was €1.7 million, down 3.6% year on year. Revenue to the end of September increased by 11% from the same period a year earlier to €6.3 million.  EBITDA for the third quarter decreased by 14.3% from the same year-earlier period to €939.000. EBITDA for the first nine months was up 10.7% from the same period in 2010, at €4.1 million.

In the third quarter Fixed Income trading came in at €1.2 trillion, up 24.1% year on year while in the first nine months of the year it totalled €4.3 trillion, up 78.9% from the same period a year earlier.

IT & CONSULTING

Revenue in the third quarter in this unit was €4.3 million, up 36.2% year on year. Revenues from the various services provided by this unit through September amounted to €12 million, up 18% compared to the same period in 2010.

The growth in cash volumes traded and the number of orders routed through Visual Trader was in line with previous quarters, boosting the unit’s Revenue. In this respect, cash volume routed to BME through Visual Trader to the end of September was 39.9% higher than a year earlier, while the number of orders increased by 131.2%.