- Operating income grew 16.5% driven by a solid performance in derivatives and in other revenues not related to volumes traded, combined with effective expenses control
- IFRS net income was negatively impacted by a non-cash impairment of assets in the amount of R$1.7 billion (R$1.1 billion, net of tax)
- Adjusted net income1 increased by 43.1% reflecting solid operating performance, increased financial results and reduction in tax expenses due to the payment of interest on capital
BM&FBOVESPA S.A. (ticker: BVMF3) today reported its fourth-quarter earnings for the period ending on December 31, 2015 (4Q15). In this quarter, revenues reached R$603.3 million, a 1.8% increase year-over-year (4Q14), while the full-year total revenues reached R$2,458.8 million, 9.5% growth versus the previous year.
Adjusted OPEX2 and CAPEX were in line with their previously announced budgets. Adjusted OPEX amounted to R$614.3 million (budget of R$590 million – R$615 million) while CAPEX totaled R$227.0 million (budget of R$200 million – R$230 million). Furthermore, the budgets for 2016 were announced. The 2016 adjusted OPEX budget ranges from R$640 million to R$670 million, with expected growth slightly below the expected inflation rate, while the CAPEX budget has been reviewed to an interval between R$200 million and R$230 million.
Highlights of the 4Q15 results:
- Total revenues increased 1.8% over the previous year’s fourth quarter, reflecting revenues growth in the derivatives segment and in other business not related to volumes, and a reduction in the Bovespa segment revenues;
- In the BM&F segment, average daily volume (ADV) decreased 4.3% while average revenue per contract (RPC) increased by 27.3% over 4Q14;
- Average daily trading value (ADTV) in the Bovespa segment fell 20.7%, while average trade/post-trade margin increased 4.8% in comparison with 4Q14. Equity volumes in 4Q14 had been fueled by pre-election volatility;
- Other revenues not related to volumes traded grew 18.3% over 4Q14, reflecting the solid performance of certain services, such as: market data (+68.1%) and securities lending (+27.5%);
- Adjusted expenses reached R$170.4 million in 4Q15, a decrease of 2.6% compared to 4Q14. For FY15, adjusted expenses grew 3.7%, significantly below accumulated inflation in the period of 10.7%3;
Chief Executive Officer of BM&FBOVESPA, Edemir Pinto, said: “In 2015, the resilience of our business model allowed us to sail through a challenging economic environment and deliver solid results. We witnessed a deterioration of the Brazilian macroeconomic environment, while at the same time, the global economy is also showing signs of weakness. For 2016, these challenges will likely not subside, but BM&FBOVESPA will maintain focus on the execution of its strategic projects, notably the second phase of the integration of our Clearinghouses that will bring advantages to the whole market and enhance our strategic position. Also, we will keep exploring growth opportunities offered by products and market development as well as expanding our footprint”.
Chief Financial Officer, Daniel Sonder, commented: “The growth we saw in both top line and bottom line in 2015 highlights once again the importance of having a diversified revenue base, with a balanced exposure to equity, interest rates and FX products. Also, the review of certain commercial policies supported the growth of some revenue lines. Expenses grew significantly below inflation during the year, reinforcing the Company’s discipline and commitment to pursuing higher efficiency levels. Finally, as in previous years, we maintained our practice of returning significant amounts of capital to shareholders through dividends, interest on capital, and buy-backs”.
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