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Bolsa Mexicana de Valores SAB de CV (BOMXF) Q4 2024 Earnings Call Highlights: Strong Growth in ...

In This Article:

  • Revenue: MXN1.1 billion, up 12% year-over-year.

  • EBITDA: MXN671 million, up 13% with a 59% margin.

  • Net Income: MXN467 million, up 14%.

  • Earnings Per Share: MXN0.83, up 16% from the previous year.

  • Full-Year Revenue: MXN4.16 billion, up 6%.

  • Full-Year Net Income: MXN1.637 billion, up 9%.

  • Full-Year Earnings Per Share: MXN2.92.

  • Equity Trading Revenue: Up 21% with an average daily traded value of MXN15.3 billion.

  • Derivatives Trading Revenue: Up 49% due to higher margin deposits and contract conversion effects.

  • Information Services Revenue: MXN206 million, up 14%.

  • Operating Expenses: MXN2.0 billion, up 5%.

  • Dividend: MXN2.05 per share, equivalent to 70% of net income.

  • Share Buyback Program: Increased to up to MXN500 million in 2025.

Release Date: February 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Bolsa Mexicana de Valores SAB de CV (BOMXF) reported a strong fourth quarter with double-digit growth in revenues, EBITDA, net income, and earnings per share.

  • Revenues increased by 12% to over MXN1.1 billion, driven by larger volumes in cross-border transactions and increased trading.

  • EBITDA rose by 13% with a 59% margin, supported by disciplined cost management.

  • Net income grew by 14%, and earnings per share increased by 16% compared to the fourth quarter of 2023.

  • The company announced a dividend of MXN2.05 per share, maintaining a dividend yield above 6%, and plans to increase its share buyback program to MXN500 million in 2025.

Negative Points

  • The company faced a decrease in revenues from SIF Icap, with a 7% drop due to lower CO2 emissions compensations and FX fluctuations.

  • Listings revenue decreased by 3% due to a lower number of long-term debt issuances and no equity listings during the quarter.

  • The local market activity decreased by 2%, and the market share for the quarter was reduced by 2 points due to competitive pricing changes.

  • The company is awaiting regulatory approval for a new pricing structure, which could impact revenues by up to MXN100 million annually.

  • Operating expenses increased by 5%, driven by personal expenses, technology investments, and sub-custody costs.

Q & A Highlights

Q: Can you explain the non-recurring impacts on FX and interest rates, and how they affect Bolsa's earnings? A: The non-recurring impacts are related to the conversion from the old reference rate to the new one, which had a MXN10 million impact in ASIGNA. For every MXN1 fluctuation in the exchange rate, we expect a MXN50 million to MXN60 million impact on EBITDA annually. This remains valid.