BM&F BOVESPA SA announces today the results obtained by the Brazilian Mercantile & Futures Exchange-BM&F SA (BOVESPA: BMEF3) in the first quarter of 2008.
BM&F SA was incorporated into BM&F BOVESPA SA at a shareholders’ meeting held on May 8, 2008. The largest derivatives exchange in Latin America based on the number of contracts traded and the only futures exchange operating in Brazil, BM&F’s purposes are to develop and manage trading and settlement systems for securities and derivatives based on financial instruments, indices, indicators, rates, commodities, foreign currencies, energy prices, transportation, climate and environmental commodities, for both immediate and future settlement. Together with the BM&F Foreign Exchange Clearinghouse, the Securities Clearinghouse and the Settlement Bank, the company seeks to provide its clients with products and services that allow them (i) to hedge against market risks, (ii) arbitrate prices between markets and/or securities, (iii) diversify investment allocations; and (iv) leverage positions.
The company’s audited financial statements were prepared in accordance with the accounting practices adopted in Brazil, which are based on Brazilian corporate law, the Brazilian Securities and Exchange Commission (CVM) rules and regulations, and the accounting standards issued by the Brazilian Institute of Independent Accountants (IBRACON) (“Brazilian GAAP”).
Highlights in the period:
• A 24.5% growth in adjusted net income. The adjusted net income was BRL85 million in 1Q2008, up 24.5% over BRL68.3 million in 4Q2007.
• Net margin growth to 59.3%. The net margin was 59.3% in 1Q2008, in comparison with 54.1% in 4Q2007.
• A 13.5% growth in net revenues. The net revenues were BRL143.3 million in 1Q2008, up 13.5% over BRL126.3 million in 4Q2007.
• A 103% growth in market data revenues. The market data revenues increased 103% in 1Q2008. These revenues have continued to grow in the mix of the company’s revenues.
• A 7% reduction in operating expenses. The operating expenses, excluding non-recurring expenses, registered a 7% decline in comparison with the amounts registered in 4Q2007, thereby demonstrating the continuous efforts towards cost reduction.
• A 34.7% growth in EBITDA. The adjusted EBITDA reached BRL85.2 million in 1Q2008, up 34.7% over BRL63.2 million in 4Q2007.
• EBITDA margin growth to 59.4%. The adjusted EBITDA margin was 59.4% in 1Q2008, in comparison with 50.1% in 4Q2007.
• 14.6% growth in trading volume. Despite the worsening US subprime crisis, the trading volume reached 105.3 million in 1Q2008, up 14.6% over 91.9 million contracts traded in 4Q2007.
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