* Profit of 276.5 mln reais misses poll estimates
* Net revenue declines for first time since first quarter
* EBITDA down from second quarter; beats forecast
SAO PAULO, Nov 6 BM&FBovespa SA, the
world's third-largest exchange, missed third-quarter profit
estimates on Tuesday after revenue fell for the first time this
year and expenses rose more than expected.
The São Paulo-based company posted net income of 276.5
million reais ($136 million), down 7.8 percent from 300 million
reais in the prior three months, according to a securities
filing on Tuesday. Profit, which fell for the first time since
the fourth quarter, also suffered as financial expenses rose.
A Reuters poll with seven analysts predicted profit of 297.1
million reais in the quarter. Compared with the third quarter of
2011, profit at BM&FBovespa slipped 5.2 percent.
The results underscore flagging trading activity in equities
and derivatives in the country, which has seen money from
foreign investors leave this year as risk aversion related to
Europe's debt crisis stays high and uncertainty mounts over
growing state intervention in some key sectors in Brazil.
Traded volumes of stocks and derivatives fell on a
sequential basis, while the number of accounts under
BM&FBovespa's custody slipped 0.7 percent in the period. The
participation of high-frequency trading rose to 9.8 percent of
total trades from 9.4 percent in the second quarter - weighing
on fee income.
Revenue at the BM&F derivatives segment slipped 8.5 percent,
while that for the Bovespa equities segment fell 2 percent, the
filing said. Net revenue, which includes trading, settlement,
listing and custody income, dropped 3.6 percent in a
quarter-on-quarter basis to 521.6 million reais.
The Reuters poll forecast net revenue of 518.6 million
Sales, general and administrative expenses rose for the
first time since the fourth quarter, driven by the higher cost
of outsourced services and a slightly costlier payroll, the
filing said. BM&FBovespa's expenses rose 5.2 percent to 174.8
million reais - above the 168 million reais estimate in the
Earnings before interest, tax, depreciation and
amortization, or EBITDA, fell 7 percent on a quarterly basis,
but climbed from a year earlier thanks to a higher revenue base.
EBITDA, a gauge of operational profitability, was 375.6 million
reais in the third quarter, beating the 368.1 million reais
projection in the poll.
Management will host a news conference on Wednesday to
discuss third-quarter results.