* Net income falls 22 percent, misses estimate in poll
* Expenses surged 47 pct, mainly on payroll and taxes
* Company does not report EBITDA; reiterates guidance
By Guillermo Parra-Bernal
SAO PAULO, Feb 19 BM&FBovespa SA,
Brazil's sole financial bourse, reported lower fourth-quarter
net income after expenses surged and revenue from derivatives
and equities trading came in below expectations.
Net income at the São Paulo-based company fell 22 percent on
a quarter-on-quarter basis to 217.18 million reais ($111
million), well below the 255.6 million reais estimated in a
Thomson Reuters poll of five analysts. Profit rose almost 14
percent on a year-on-year basis, BM&FBovespa said in a
securities filing late on Tuesday.
Expenses drove profit down, thanks to a 47 percent surge
from the third quarter. Sales, general and administrative
expenses reached 256 million reais, the highest level in a year,
following increases over 25 percent in payroll, outsourcing,
marketing and tax-related items.
The company estimates capital expenditures between 260
million reais and 290 million reais for 2013, and between 170
million reais and 200 million reais for 2014. Guidance for
operational expenses this year was reiterated at 560 million
reais to 580 million reais - the same range as last year.
Revenue slipped 4.3 percent to 499.2 million reais from the
prior quarter, fueled by a 9.4 percent decline in income from
equities trading in the Bovespa segment. Derivatives trading
revenue fell 6.4 percent at the BM&F segment in the fourth
Yet, the revenue result topped analysts' estimates in the
poll, which put the number at 489.2 million reais for the fourth
Average revenue per contract rose for every item excluding
interest-rate futures denominated in reais on a sequential
basis, the company said. Still, average trading volumes for
currency, exchange-traded funds, commodities and
dollar-denominated rates futures fell sharply in the quarter.
The company did not report earnings before interest, tax,
depreciation and amortization for the quarter or the year. The
indicator, known as EBITDA, is a widely followed gauge of
operational profitability. No reasons were given for the
Financial income, or revenue from investment and non-core
activities, fell 5.3 percent in the quarter.
Management will discuss fourth-quarter earnings with
investors and reporters at an event on Wednesday in São Paulo.