BM&FBOVESPA S.A. announces results for the First Quarter 2012

BM&FBOVESPA S.A. announces results for the First Quarter 2012



BM&FBOVESPA S.A. (BVMF3) today reported first quarter earnings ending March 31, 2012. Foreign investors drove strong trading performance in the Bovespa segment, boosting activity by 11.4% quarter-over-quarter. Strong adjusted EBITDA margin growth also benefitted as reduced adjusted Opex came in line with the Company’s 2012 targets.

“The year is off to a strong start with solid top-line growth and bottom line results,” said BM&FBOVESPA Chief Executive Officer Edemir Pinto. “Our focus on creating one of the most modern exchanges in the world is producing exciting results as we make excellent progress on internal testing of our PUMA Trading System equities module. Integration of our four clearing houses into a single post-trading system is also on track. These advancements will help strengthen our strategic position in the Brazilian market. Indeed, our focus on operational excellence and development of new products and markets are all important steps toward our long-term goal of delivering future sustainable growth and reducing risk.”

Chief Financial, Corporate Affairs and Investor Relations Officer, Eduardo Refinetti Guardia, said: “Improved market conditions, capacity to expand our share of new products and a tough stance on costs have translated into a positive first quarter. We are on track to deliver a decline in real terms in 2012 expense growth.”

  • 1Q12 net revenues reached R$502.8 million, up from R$472.2 million in 1Q11 and R$471.2 million in 4Q11, reflecting the solid growth in all operating segments;
  • Adjusted expenses[1] fell to R$125.4 million from R$140.6 million in 1Q11 and R$163.9 million in 4Q11, mainly due to lower personnel, data processing, third party services expenses and marketing;
  • Adjusted EBITDA[2] margin grew to 74.9%, compared to 65.2% in 4Q11 and 70.4% in 1Q11, reflecting a combination of revenue growth and a strong focus on cost reduction;
  • Adjusted net income[3] totaled R$409.2 million, a 6.5% increase over 1Q11; adjusted EPS rose 8.3%;
  • Average Daily Trading Value (ADTV) of Exchange Traded Funds (ETFs) was up 147.1% year-over-year and average assets under custody of Tesouro Direto rose by 57.8%;
  • The Company made progress on construction of the new integrated clearinghouse;
  • Recommendation of R$224.3 million in dividends, comprising 80% of 1Q12 net income.

Find attached the complete press release.

[1]Expenses adjusted to Company´s stock options plan costs, depreciation, provisions, tax on dividends from the CME Group and contribution to MRP - Investor Compensation Mechanism Fund (the last in 4Q11).

[2]EBITDA adjusted to Company´s stock options plan costs and contribution to MRP (the last in 4Q11).

[3]Net income adjusted to eliminate deferred liability recognized in correlation with temporary differences from amortization of goodwill for tax purposes, the impact of the stock options plan and the investment in associates (CME Group) accounted for under the equity method net of taxes, taxes paid overseas to be compensated and contribution to MRP (the last two in 4Q11).