11/12/2015

São Paulo, Brazil, November 12, 2015 - BM&FBOVESPA S.A. (ticker: BVMF3) today reported its third-quarter earnings for the period ending on September 30, 2015. In this quarter, earnings were impacted by two non-recurring events related to the CME Group: the results from the partial divestment (1% of the total CME Group Shares) and the discontinuity of the equity method of accounting for the remaining investment (4% of the total CME Group Shares).

São Paulo, Brazil, November 12, 2015 - BM&FBOVESPA S.A. (ticker: BVMF3) today reported its third-quarter earnings for the period ending on September 30, 2015. In this quarter, earnings were impacted by two non-recurring events related to the CME Group: the results from the partial divestment (1% of the total CME Group Shares) and the discontinuity of the equity method of accounting for the remaining investment (4% of the total CME Group Shares).

Highlights of the 3Q15 results:

  • Total revenues increased 11.8% over the previous year's third quarter, reflecting growth in revenues from the derivatives segment and other revenues not tied to volumes;
  • In the BM&F segment, average daily volume (ADV) rose 24.3% and average revenue per contract (RPC) increased by 8.9% over 3Q14;
  • The average daily trading value (ADTV) in the Bovespa segment fell 10.2%, while the average trading/post-trading margin decreased 4.7% in comparison with the 3Q14;
  • Other revenues not tied to volumes traded grew 33.1% over 3Q14, reflecting the solid performance of certain services: depository (+23.6%), market data (+71.3%), and securities lending (+48.2%);
  • Adjusted expenses reached R$163.6 million in 3Q15, an increase of 11.4% compared to 3Q14 and in line with the execution of the 2015 expense guidance;

    [1] Net income adjusted to the Company's (i) deferred taxes recognized in relation to temporary differences from amortization of goodwill for tax purposes; (ii) costs from stock grant - principal and payroll taxes -, net of tax deductibility, and stock option plan; (iii) investment in affiliate (CME Group) under the equity method of accounting, net of taxes related to dividends received from CME Group; (iv) taxes paid overseas to be compensated; (v) impacts of tax credits from IoC; (vi) non-recurring impact from the partial divestment in the equity stake in CME Group; and (vii) non-recurring impact from the discontinuity of the equity method of accounting. [2] Expenses adjusted to the Company's (i) depreciation and amortization; (ii) costs from stock grant plan - principal and payroll taxes - and stock option plan; (iii) tax on dividends from the CME Group; and (iv) transfer of fines and provisions.

  • Non-recurring net gain of R$474.2 million from the sale of 20% of the equity investment held in CME Group (1% of the total CME Group Shares);
  • Non-recurring additional net income impact of R$1,145.0 million from accounting impact of the discontinuity of the equity method of accounting for the remaining investment in CME Group (4% of the total CME Group Shares);
  • R$314.6 million in interest on capital, 80% of the net income ex-CME impacts;

Chief Executive Officer of BM&FBOVESPA, Edemir Pinto, said: 'We obtained yet another important achievement in the development of our new integrated clearinghouse with the conclusion of substantially all the technological developments of the equities phase at the end of Oct'15, as scheduled. We now begin the testing phase that should take approximately one year, subject to market participants' engagement and regulatory tests. We are also pleased that our platforms and systems, put in place over the past few years, have shown resilience and efficiency in handling large volumes, and that our work in many initiatives in non-volume related business lines are yielding the desired results.'

Chief Financial Officer, Daniel Sonder, commented: 'In this quarter, we increased top line and operating income and executed a partial divestment of our equity holdings in the CME Group, aiming to rebalance the mix of assets in our balance sheet and reduce the Company's risk exposure to the US Dollar and CME Group share price. This partial divestment did not alter the terms of the strategic partnership with the CME Group. We also maintained our focus on expense management and our year-to-date adjusted expenses growth is significantly below inflation.'

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