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Bolsa Mexicana de Valores SAB de CV (BOMXF) Q2 2024 Earnings Call Highlights: Strong Growth in ...

In This Article:

  • Revenue: MXN1 billion, up 6% year-over-year for Q2 2024.

  • EBITDA: MXN556 million, up 7% year-over-year for Q2 2024.

  • Earnings Per Share (EPS): MXN0.68, up 10% year-over-year for Q2 2024.

  • First Half Revenue: Nearly MXN2 billion, flat year-over-year.

  • First Half EBITDA: MXN1.1 billion, down 3% year-over-year.

  • EBITDA Margin: 56% for the first six months of 2024.

  • Net Income: MXN385 million, up 8% year-over-year for Q2 2024.

  • Capital Expenditures: MXN104 million in technology during the first semester of 2024.

  • Equity Trading Revenue: Up 15% year-over-year for Q2 2024.

  • Derivatives Trading Revenue: Up 11% year-over-year for Q2 2024.

  • Assets Under Custody: Increased 12% to MXN38 trillion.

  • Operating Expenses: MXN984 million for the first six months of 2024, up 3% year-over-year.

Release Date: July 24, 2024

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 6% increase in revenue, reaching MXN1 billion for the second quarter of 2024.

  • EBITDA increased by 7% to MXN556 million, demonstrating effective cost management.

  • Earnings per share rose by 10% year-over-year, indicating strong profitability.

  • The company experienced a 15% increase in revenue from equity trading and clearing, with average daily traded value up by 12%.

  • Indeval, the Central Securities Depository, saw a 12% increase in revenue due to higher assets under custody and cross-border transactions.

Negative Points

  • Revenue for the first half of the year was flat year-over-year, impacted by high interest rates and a strong peso.

  • EBITDA for the first half of the year decreased by 3%, primarily due to foreign exchange impacts.

  • The information services and OTC trading segments underperformed, largely due to FX fluctuations.

  • There were no equity listings or follow-ons during the second quarter, impacting capital formation revenue.

  • Operating expenses increased by 3% in the first half of 2024, driven by personnel expenses and technology investments.

Q & A Highlights

Q: What is Jorge Alegria's new vision for Bolsa Mexicana de Valores, and how does he plan to prevent future de-listings? A: Jorge Alegria, the CEO, emphasized focusing on closer customer relationships, expanding market data products, and enhancing fixed income market offerings. He plans to prevent de-listings by improving market data offerings and pursuing electronic platforms for fixed income products, aiming for a more comprehensive strategy that includes derivatives.