11/13/2014
  • Better volumes quarter-over-quarter for both the equities and the derivatives segments
  • The derivatives phase of the new integrated Clearinghouse and new CloseOut Risk Evaluation (CORE) risk model both fully implemented on August 18, 2014
  • New 2014 OPEX budget range significantly below inflation
  • Settlement of a tax dispute created a one-off charge of R$63.1 million in 3Q14

São Paulo, Brazil, November 13, 2014 - BM&FBOVESPA S.A. (ticker: BVMF3) today reported third-quarter earnings ending September 30, 2014 (3Q14). Top line was relatively stable when compared to the previous year's third quarter (3Q13), despite the challenging market environment. Continued expense control in the quarter also contributed towards improving operating performance year-over-year (YoY). Volumes in both BM&F and Bovespa segments increased through 3Q14, resulting in double-digit growth in revenue and operating income when compared to the previous quarter (2Q14).

On September 24, 2014, reinforcing its commitment to efficiency and to expenses control, the Company announced a 2014 OPEX budget reduction to an interval between R$585 million and R$595 million, compared to the previous budget of R$595 million to R$615 million. Additionally, the Company maintains its 2014 CAPEX figure of R$230 million to R$260 million, and of R$190 million to R$220 million for 2015.

Highlights of the 3Q14 results:

  • Total revenue came flat over 3Q13, but showed robust growth of 15.1% versus 2Q14, reflecting recovery in volumes for both the equities and derivatives segments;
  • In the BM&F segment, average daily volume (ADV) rose 7.3% in comparison with 3Q13, but was offset by the 6.4% fall in the average rate per contract (RPC);
  • In the Bovespa segment, average daily trading value (ADTV) was roughly flat YoY, despite the challenging environment. The increase of 9.9% in average market capitalization offset the lower turnover velocity, which reached 66.8%, versus 73.7% in 3Q13;
  • Tesouro Direto maintained its growth trend, achieving a new all-time high in both average assets under custody (+36.8%) and the average number of investors (+25.8%) against 3Q13;
  • Adjusted expenses reached R$146.8 million in 3Q14, a decrease of 2.3% compared to 3Q13; in the nine months to Sep 2014, adjusted expenses grew 2.5%, significantly below accumulated inflation in the period;
  • R$190.7 million in dividends, totaling 80% of 3Q14 GAAP net income.

Chief Executive Officer of BM&FBOVESPA, Edemir Pinto, said: "3Q14 was a highly volatile quarter mainly due to changes in the short-term macroeconomic outlook and the proximity of the elections. However, the execution of our long-term strategic plan is still on track. As part of the plan, on August 18 we implemented the derivatives phase of our new integrated BM&FBOVESPA Clearinghouse and of our new risk methodology CORE. This integration project creates a unified platform, offering to participants greater integration and automated treatment of processes, combined with capital efficiency for final customers. The delivery of this complex and challenging project was an important achievement for us and for all market participants that were involved in this implementation and which are now benefiting from it. We are sure that the infrastructure developments we are implementing coupled with the introduction of new products and the attracting of new customers, will improve market liquidity and pave the way for our long-term growth."

Chief Product and Investor Relations Officer, Eduardo Refinetti Guardia, commented: "Despite the volatile and challenging environment, we maintained our solid financial performance in the third quarter, largely due to our cost discipline. Our commitment to cost control was recently reinforced when we reduced our 2014 OPEX budget. Additionally, we maintained our commitment of returning capital to shareholders through an efficient combination of dividends and share buyback".

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