(Recasts with details on both companies' results, background
By Guillermo Parra-Bernal and Aluísio Alves
SAO PAULO May 8 Brazilian securities
clearinghouse Cetip SA Mercados Organizados and
financial exchange BM&FBovespa SA posted quarterly profit in
line with analysts' estimates, as they curbed exposure to
flagging local capital markets.
Transaction volumes for BM&FBovespa's equities segment and
Cetip's securities registration unit were weak in the first
quarter, while new products at both companies failed to play a
significant role in revenue, the companies said in separate
securities filings on Thursday.
The companies are contending with the slowest start to a
year in domestic capital markets in a decade, a volatile
financial trading environment, and increased politicking ahead
of the October presidential election.
For Cetip, revenue from clearing and custody activities grew
1 percent on a quarter-on-quarter basis as average prices rose.
Volume for the liens unit shrank, with a one-time price hike in
January limiting the revenue decline to 2.9 percent.
Net income at Cetip reached a record 99.98 million reais
($45 million) in the quarter, up 25 percent from a year earlier
and 4.1 percent from the prior quarter. A Reuters poll of four
analysts expected a profit of 98 million reais.
On an annual basis, net revenue fell 1.9 percent from the
fourth quarter, slightly more than the estimated 0.9 percent
decline. But sales, general and administrative expenses dropped
6.6 percent, less than the 16.2 percent consensus forecast.
Earnings before interest, tax, depreciation and
amortization, a gauge of operational performance known as
EBITDA, rose 1.4 percent to 169 million reais from the prior
quarter. Analysts' had estimated EBITDA of 168 million reais.
BM&FBovespa's performance in the first quarter was less
affected by market volatility than analysts had expected.
BM&FBovespa's net income surged 41.5 percent from the prior
quarter to 256 million reais, in line with the poll of four
analysts. Profit fell 4 percent on an annual basis.
Net revenue rose 3 percent, in line with estimates, as the
robust performance of the BM&F derivatives segment offset
disappointing cash equities and listing activity at the Bovespa
equities unit. Expenses sank 27 percent in the quarter, more
Cetip and BM&FBovespa are scheduled to discuss results with
investors on separate conference calls on Friday.
($1 = 2.20 Brazilian reais)
(Reporting by Guillermo Parra-Bernal; Editing by Richard Chang)