Quarterly results have been conditioned by a lower equity and derivatives volumes context, based on the general economic environment, regulatory limitations on trading, and an average general price correction. Nevertheless, the diversification of the business model coupled to generation of revenues not linked to volume cycles sources, have offset partially the effect of the volume decline in net income.

EBITDA for the first quarter dipped by 13.4% to reach €52.3 million while operating costs during the same period increased by 2.3% to €25.1 million.

The basic financial performance indicators remained high and are references for the industry: the efficiency ratio for first quarter is 32.4%, outperforming more than 12 points the average for the sector. Return on Equity (ROE) in the same period was 31.2%, representing a lead of more than 13 points over the sector average.

EQUITIES

Revenue for the Equity business at quarter-end 2012 amounted to €30.2 million, 21.4% down on the figure reported at 2011, while EBITDA fell 27.8% to hit €22 million.

In the first quarter of 2012, trading in equities totalled €177.2 billion, formalised through 11.3 million trades, down 28.4% year on year in terms of turnover and 13.2% in number of trades.

The number of shares traded in the first quarter reached 47.7 billion, up 6.8% on the same period last year.

SETTLEMENT

The Clearing and Settlement unit reported EBITDA of €16.1 million for the first quarter of 2012, marking an increase of 2.4% year-on-year. Revenues from the unit's different activities climbed 2.9% to reach €19.5 million.

At 31 March 2012, the nominal volume registered for both equities and Fixed Income (both Private and Public) totalled €1.7 trillion, representing year-on-year growth of 7%.
Comparing this figure with the same period of 2011, the number of settled transactiions for the first quarter fell 0.7% short, settling at 11.5 million. The drop in settlements of equities was offset by an increase in Fixed Income transactions, particularly within the Corporate Fixed Income market.

LISTING

Revenue for the Listing unit over the first quarter of 2012 fell 2.6% to reach €6.1 million. EBITDA stood at €3.8 million, down 4% on the same figure for the first quarter of 2011.

Investment flows in listed shares channelled through the exchange reached €6.9 billion in the first quarter of 2012, with highlights including the rights issues of Banco Santander, Banco Popular and Banco Sabadell.

MARKET DATA

During the first three months of 2012, the Information unit posted revenue of €8.9 million (+12.9%). EBITDA stood at €7 million, up 8.7% year-on-year.

The Information unit fared well up to 31 March 2012, not only in the number of subscribers to primary-source reporting channels, but also in direct connections to and customers of BME information servers. In comparison to the situation in the first quarter, the total number of end users climbed 6.1%, while customers and direct connections experienced 6.8% and 2.4% growth, respectively.

DERIVATIVES

Total contracts traded within the derivatives business over the first quarter of 2012 came in 4.2% lower than for the first quarter of 2011, with mixed performances from the different product segments. Trading in the various contracts pegged to the IBEX 35® was down on the same period of 2011.

Future contracts on individual stocks put on a better showing. Futures on stock saw a slight drop, but maintained high levels of trading. Equity options gained 12.9% to reach 9.4 million contracts. March marked an all-time high in trading of equity options, with a grand total of 4.5 million contracts, besting the previous high seen back in March 2001.

In accordance with reported trading volumes, the Derivatives business unit posted revenue of €5.5 million for the first quarter, 20.2% down on the same figure for 2011, while EBITDA amounted to €2.5 million, and 37.3% down year on year.

FIXED INCOME

Over the first quarter of 2012, total trading in Private Fixed Income securities stood at €753.5 billion, marking a year on year drop of 58.8%.

Repos and reverse repo business during the first three months of 2012 stood at €605.6 billion. Trading to maturity, on the other hand, climbed 51% year on year to reach €147.9 billion.

Revenue from trading of Fixed Income products in the first quarter amounted to €2.9 million representing a 26.4% increase on the same period of 2011. EBITDA climbed to €2.2 million, up 37.1% year on year.

IT & CONSULTING

The IT and Consulting unit is continuing to develop projects related to different areas and activities. Starting with post-trade services, the company reported healthy subscription rates for the Proximity services offered via Visual Trader, which grew 61.5% year on year in the number of entities signed up for the service. The smart order routing service turned in a solid performance in terms of the number of terminals connected (+15.9%).

The progress made by the unit over the quarter was largely on the back of business continuity, financial communication and compliance related services.

The various activities handled by the unit generated combined revenue of €4.1 million for the quarter, up 11.2% on the same figure for the same period last year, while EBITDA for the unit climbed to €1.5 million, marking a 45.1% increase on 2011.