BM&FBovespa (BVMF3) today reported second quarter earnings ending June 30, 2012. Higher volatility and foreign investor activity coupled with diverse interest rate expectations generated record volumes in both Bovespa and BM&F segments. Expense control in the quarter also drove strong growth in EBITDA compared to 2Q11.
BM&FBOVESPA lowered its 2012 budget range for adjusted OpEx to R$560 million - R$580 million, from R$580 million - R$590 million. Improvements in internal expense tracking processes, greater operating efficiency and higher capitalization of certain personnel expenses were the main factors for the revision. The Company will maintain its 2012 CapEx budget range of R$230 million - R$260 million.
- 2Q12 gross revenues reached R$603.2 million, growing 15.7% over 2Q11 and 7.6% over 1Q12, as all operating segments posted solid gains;
- Adjusted expenses were R$127.9 million, down 11% from R$143.7 million in 2Q11 mainly due to lower personnel, marketing and third party services expenses. 2Q12 adjusted expenses were in line with those in 1Q12 as the Company maintained a rigorous cost control;
- EBITDA grew 28.9%, compared to 2Q11, reflecting a combination of revenue growth and cost reduction;
- Adjusted net income totaled R$422.9 million, growing by 3.4% over 2Q11. Strong revenue growth was partially offset by a reduction in financial income and higher non-cash taxes;
- Adjusted earnings per share rose 4.9%, to R$0.2191;
- Operating cash generation reached R$427 million, up 33% over 2Q11;
- Average Daily Trading Value (ADTV) of Exchange Traded Funds (ETFs) was up 347.5% year-over-year and average assets under custody of Tesouro Direto rose by 56.0%;
- Record of Average Daily Volume (ADV) of Interest Rates in BRL, stock indices and mini contracts, 31.4%, 101.2% and 94.6% growth year-over-year, respectively;
- R$240.1 million in dividends, comprising 80% of 2Q12 net income.
"Our projects are on track as we continue to diversify our revenue base and unlock the revenue potential of current markets. We are also innovating our electronic platforms to strengthen the Company's leadership position and build value for our investor," said BM&FBOVESPA Chief Executive Officer Edemir Pinto. "For the second half of the year, we are focused on deploying two important developments - the equity module of the PUMA Trading System and the first phase of our new OTC platform. These investments, along with our new integrated clearinghouse, will increase market efficiencies and support future growth for the Company."
Chief Financial, Corporate Affairs and Investor Relations Officer, Eduardo Refinetti Guardia, said: "Our second quarter results reflect growth from new products, consistent improvements in operating efficiency and our cost control initiatives. These operational advancements are the reasons we revised downward our guidance for adjusted expenses for this year."
Expenses adjusted to Company´s depreciation, stock options plan costs, tax on dividends from the CME Group and provisions.
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, the investment in associates (CME Group) accounted for under the equity method net of taxes and taxes paid overseas to be compensated.