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• Revenue: Over MXN1 billion, up 13% for the third quarter.

• EBITDA: MXN609 million, up 19%.

• Earnings Per Share: $0.73, up 27% year-over-year for the quarter.

• First Nine Months Revenue: Over MXN3 billion, up 4%.

• EBITDA Margin: 56% up to September.

• First Nine Months Earnings Per Share: MXN2.08, up 8% year-over-year.

• Equity Trading Revenue: Up 20% compared to the third quarter of last year.

• Average Daily Traded Value: MXN17 billion, up 24%.

• Clearing Revenue: Up 50%.

• Indeval Revenue: Up 27% due to increased assets under custody and cross-border transactions.

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

• Operating Expenses: MXN1.5 billion for the first nine months, up 4%.

• Net Income: MXN410 million for the third quarter, reflecting a 24% growth.

• Capital Expenditure on Technology: MXN154 million up to September, up 14%.

Release Date: October 23, 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 strong financial performance in Q3 2024, with revenue exceeding MXN1 billion, up 13% year-over-year.

• Earnings per share increased by 27% compared to the same quarter last year, reflecting robust profitability.

• The company maintained a high EBITDA margin of 58% for the quarter, showcasing effective cost management.

• There was a significant increase in equity trading and clearing revenue, up 20% year-over-year, driven by a 24% rise in average daily traded value.

• The central securities depository, Indeval, saw a 27% increase in revenue due to higher assets under custody and favorable exchange rates.

Negative Points

• Bolsa Mexicana de Valores SAB de CV (BOMXF) anticipates a potential negative impact on revenues between MXN90 million to MXN110 million due to competitive pricing changes by a rival exchange.

• The company experienced a decrease in OTC trading and value-added services revenue by 3%, attributed to lower CO2 emissions compensations.

• Listing revenue decreased by 4% due to a lower number of long-term debt issuances and follow-on offerings.

• The information services segment saw a revenue decrease of 6% when excluding exchange rate impacts, due to product cancellations and portfolio management service withdrawals.

• The company faces challenges in maintaining market share amidst competitive pressures and regulatory changes, which may impact future revenue growth.

Q & A Highlights

Q: Can you elaborate on the new pricing structure introduced by Viva and its potential impact on Bolsa Mexicana de Valores? A: Alfredo R. Guillen Lara, Director of Capital Market Transaction Services, explained that Viva's new pricing structure includes changes to maker-taker tariffs, a commercial scheme favoring block trades and closing prices, and a liquidity supplier rebate structure. These changes are expected to impact Bolsa's revenues by approximately MXN90 million to MXN120 million annually, which could imply a discount more aggressive than Viva's 25%.