Operating income in 4Q14 was 27.2% higher than in the prior year's fourth quarter, as a result of top-line growth and expense control
4Q14 Results from equity investment in CME Group grew 70.7%
Share buyback of R$936.6 million in 2014 (90.0 million shares), 4.8% of the free-float; 85 million shares cancelled, reducing the capital stock to 1.815 billion shares (current free-float of 1.802 billion shares)
2014 was the third year of expenses growing significantly below inflation; this performance should be repeated in 2015, according to the budget announced in Dec'14 02/02/2015

São Paulo, Brazil, February 10, 2015 - BM&FBOVESPA S.A. (ticker: BVMF3) today reported fourth-quarter earnings ending December 31, 2014 (4Q14). Higher volumes in both the derivatives and equities segments delivered a boost in revenue in comparison with the prior year's fourth quarter (4Q13).

On December 11, 2014, reinforcing its commitment to efficiency and to expenses discipline, the Company announced its 2015 adjusted OPEX1 budget of R$590 million to R$615 million. Additionally, the Company announced its CAPEX budgets of R$200 million to R$230 million for 2015 and of R$165 million to R$195 million for 2016.

Highlights of the 4Q14 results:

  • Total revenue grew 13.4% versus 4Q13, reflecting higher volumes in both the derivatives and equities markets, particularly in October and November due to the election-related volatility;
  • In the BM&F segment, average daily volume (ADV) rose 14.7% in comparison with 4Q13, but was partially offset by a 4.9% fall in the average rate per contract (RPC);
  • In the Bovespa segment, average daily trading value (ADTV) rose 30.7% YoY. Higher turnover velocity, which reached 87.5% versus 64.4% in 4Q13, was the main growth driver; on the other hand trading margins fell 0.31 bps;
  • Tesouro Direto maintained its growth trend, achieving a new all-time high in both average assets under custody (+39.9%) and average number of investors (+30.1%) over 4Q13;
  • Adjusted expenses reached R$174.9 million in 4Q14, an increase of 3.8% compared to 4Q13; for 2014, adjusted expenses grew 2.9%, significantly below accumulated inflation in the period;
  • R$185.9 million in dividends, totaling 80% of 4Q14 GAAP net income;
  • Share buyback reached R$228.5 million in 4Q14; new program approved in Dec'14 allows the repurchase of up to 3.3% of the free-float in 2015.

Chief Executive Officer of BM&FBOVESPA, Edemir Pinto, said: "2014 was a year of transformational achievements by BM&FBOVESPA. On August 18, we launched the first module of the new and unified BM&FBOVESPA Clearinghouse and the new integrated risk management system, CORE. Additionally, we had delivered on important efforts to foster markets and business development during 2014. First we had the approval of a set of measures aiming to ease and stimulate the access of small and medium-sized companies to the capital market, including a capital gains income tax exemption for individuals that invest in such companies. We also announced a MoU with S&P Dow Jones Indices for the establishment of a partnership to develop new benchmark indices for the Brazilian market, thus fostering the development of new products based on these. All these initiatives reinforce our commitment to offer the market top-notch infrastructure in terms of sophistication, benefits and security as well as our role as a key player that seeks development opportunities in the Brazilian market".

Chief Financial and Investor Relations Officer, Daniel Sonder, commented: "As in previous years, we maintained our commitment of returning capital to shareholders through an efficient combination of dividends and share buyback during 2014. Additionally, the expense discipline and quest for efficiency that we have adopted resulted in another year of expenses growth coming in significantly below inflation, which we expect to replicate in 2015 as evidenced in our recently-announced adjusted OPEX budget".

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