BME posts a net profit of €33.1 million in the third quarter, up 6.8% year on year

Net profit in the first nine monthsof 2013 totalled €105.2 million, up 0.1% yoy 

31 October, 2013
  • Quarterly revenues increase 2.8% from the third quarter in 2012
  • Operating costs decrease 2.8% in the third quarter and 1% to the end of September
  • The efficiency ratio for the first nine months stands at 32.9%, 15 points above the sector average
  • Return on equity (ROE) from January to September increases to 34.7%, more than 22 points above the sector average
  • Total investments flows channelled through the exchange in the first nine months amounted to €25.6 billion (+27.7%)

BME reported net profit of €33.1 million for the third quarter of 2013, an increase of 6.8% year-on-year. In the first nine months of 2013, net profit amounted to €105.2 million, an increase of 0.1% from the same period last year. Year-on-year comparisons of cumulative net profit turned positive for first time after previous quarters showed declines.

Revenues rose 2.8% year-on-year in the third quarter of 2013 to €72.5 million. In the first nine months of the year revenues decreased 1.4% year-on-year to €225.9 million. This has allowed a 1.9% reduction from the -3.3% reported at the end of the previous quarter. Equity trading was the largest driver of revenue growth in the third quarter. Revenue and EBITDA in the Equity unit rose 11.6% and 17.7% year-on-year, respectively.

Operating costs totalled €23.7 million in the third quarter of 2013 and €74.4 million in the first nine months, signalling decreases of 2.8% and 1%, respectively, from the same periods last year.

Aggregate earnings per share in the first nine months of 2013 were €1.26, of which €0.40 related to the third quarter.

Among the main financial management indicators, the efficiency ratio for the first nine months was 32.9%, more than 15 points above the sector average. ROE in the first nine months improved 2.3% and stood at 34.7%, more than 22 points above the sector average.

EQUITIES

Revenues for the Equity unit rose 11.6% year-on-year in the third quarter of 2013 to €29 million. EBITDA for the same period was up 17.7% from a year earlier, at €21.5 million. In the first nine months of the year, revenues and EBITDA fell 3.3% and 3.6% from the previous year, respectively, to €83.2 million and €59.9 million.

The number of equity trades rose 42% year-on-year in the third quarter to 12.6 million. Turnover in equities in the third quarter increased by 3% from a year earlier, to €158.2 billion.

SETTLEMENT

In the Settlement and Registration unit, revenues through September amounted to €61.8 million (+2.3%), of which €18.4 million were obtained in the third quarter of 2013 (-3.6%). EBITDA for these services amounted to €15.1 million in the third quarter, posting a year-on-year decline of 1.6% and €51.6 million in the nine-month period, an increase of 4.3% from last year.

The nominal volume registered for Fixed Income (both private and public) and equities at the end of the third quarter amounted to €2.2 trillion, up 4.4% from the third quarter of 2013.

LISTING

The use of capital instruments in the form of rights issues and scrip dividends remained strong in the third quarter. Investment flows channelled through the exchange in the third quarter amounted to €6.1 billion, taking the total for the first nine months of the year to €25.6 billion, 27.7% higher than in the same period a year earlier.

Investment flows in shares already admitted to trading in the third quarter included €2.9 billion of scrip dividends and BBVA’s capital increase. Scrip dividends rose 21% year-on-year to €7.8 billion in the first nine months of 2013, with a 49.7% increase in the third quarter relative to a year earlier.

Revenue for the Listing business amounted to €4.8 million in in the third quarter of 2013 (+1.1%) and €14.8 million in the first nine months of the year (-8.5%). EBITDA showed an increase of 4.4% to €2.6 million in the third quarter and €8 million in the nine-month period, marking a decrease of 13.5% from the same period last year.

MARKET DATA

Revenues from Information services totalled €8.1 million in the third quarter (-5.2%) and €24.5 million in the first nine months of the year (-6%). EBITDA amounted to €6.3 million in the third quarter and €19 million in the first nine months of 2013, down 6% and 7.5% from the same periods last year.

DERIVATIVES

The total volume of contracts traded in the Derivatives unit fell 25.2% in the third quarter of 2013 and 27.3% in the first nine months of the year, both from the same periods a year earlier.

Revenues for the Derivatives unit in the third quarter fell 0.7% year-on-year to €6.5 million but were still up in the nine-month period by 5% from a year earlier, at €20.1 million. EBITDA totalled €3.8 million in the third quarter of 2013 and €11.7 million in the first nine months, marking year-on-year increases of 1.7% and 11.7%, respectively.

FIXED INCOME

Total trading in the unit fell 54% year-on-year in the third quarter, to €272 billion. However, the number of trades executed in the period rose by 55.9%, helping temper the fall in turnover. Through 30 September, Fixed Income turnover was down 43.3% from a year earlier, with 8.2% fewer trades.

Operating revenues in the Fixed Income unit rose by 2.2% year-on-year in the third quarter of 2013 to €1.9 million, but fell 9.6% year-on-year in the nine-month period to €6.5 million. EBITDA increased by 6.3% year-on-year in the third quarter of 2013, to €1.1 million, but declined by 13.3% from the previous year in the first nine months, to €4.2 million.

IT & CONSULTING

Revenue from the IT & Consulting unit performed in positive in the third quarter, rising 2.3% year-on-year and taking the cumulative gain in the first nine months of 2013 to 9.7% from a year earlier. The unit’s various activities obtained revenues of €3.9 million in the third quarter and €13.3 million in the nine-month period this year. EBITDA for the unit rose 18.1% in the third quarter of 2013 to €1.5 million and was up 35.3% year-on-year in the nine-month period, at €5.8 million.

In technical infrastructure, more clients have been added to BME’s co-location infrastructure service, rolled out in April, meanwhile the number of clients connected “in proximity” from London increased by 44.4% since September last year. The area of production, contingency (BME Alternative) and cloud (BME Incloud) solutions received a commercial boost through bundled offers combining the three services.

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