Brazil's BM&F Bovespa 1Q Net Down 5.2% At BRL384.2 Million
May 12 2011 - 8:16PM
Dow Jones News
Brazil's Sao Paulo stock exchange operator, BM&F Bovespa SA
(BVMF3.BR), reported Thursday a 5.2% decline in first-quarter net
profit from the same period last year, citing an increase in
operating expenses.
According to the company's first-quarter earnings statement, net
profit declined to 384.2 million Brazilian reais ($237.2 million)
from BRL405.1 million a year earlier.
The exchange said net operating revenue in the quarter rose 2.5%
to BRL472.2 million.
Earnings before interest, taxes, depreciation and amortization,
or Ebitda, fell 8.3%, however, to BRL308.1 million.
The company reported that overall operating expenses in the
first quarter rose 41% to BRL188.7 million. Adjusted operating
expenses--which eliminated "a stock options plan, depreciation and
allowance for doubtful accounts, and tax on dividends from CME
Group"--rose 21.8% to BRL140.6 million.
In the report, the company cited increases in personnel and
technology investments during the period as well as an investor
education campaign, as the main factors behind the increase in
costs.
In a declaration accompanying the earnings statement, BM&F
Bovespa Chief Executive Edemir Pinto said the company's actions in
the first quarter would further enhance its "competitive position"
and strengthen a "foundation toward delivering future sustainable
growth."
"Specifically, we began the process to rebalance our trading and
post-trade fee rates, which is a key step toward reducing cross
subsidies embedded in product prices across businesses lines,"
Pinto said. "We have also achieved significant progress in
developing our new multi-asset class trading platform and
implementing the integration of our clearing facilities, which are
aimed at offering greater efficiency for market participants."
BM&F Bovespa operates Brazil's main financial securities and
derivatives exchanges.
Following a share swap in 2008, BM&F Bovespa initiated a
partnership with the CME Group Inc. (CME), obtaining a 5% stake in
that company.
BM&F Bovespa share ended Thursday down 0.9% at BRL11.70.
-By Gerald Jeffris, Dow Jones Newswires; (5561) 3335-0832;
gerald.jeffris@dowjones.com
CME (NASDAQ:CME)
Historical Stock Chart
From May 2024 to Jun 2024
CME (NASDAQ:CME)
Historical Stock Chart
From Jun 2023 to Jun 2024
