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BM&FBovespa Quarterly Earnings Trail Estimates as Costs Increase

BM&FBovespa SA (BVMF3), the operator of Latin America’s biggest securities exchange, posted first-quarter earnings that missed analysts’ estimates as operational costs increased.

Adjusted net income was 394.6 million reais ($196 million) during the three months that ended in March, the exchange said in a regulatory filing. The average estimate was for adjusted net income of 412.3 million reais, according to data compiled by Bloomberg.

Average daily stock trading volume increased 5 percent to 7.5 billion reais in the first quarter, according to the filing. Revenue from fees charged on derivatives transactions rose 10 percent to 221.8 million reais. Total expenses were 172.8 million reais, a 4 percent increase from a year earlier.

“We’re going to be looking at how they are managing their expenses,” Rodolfo Amstalden, an analyst at consulting firm Empiricus Research, said by phone today before the earnings statement was released.

BM&FBovespa on April 1 lowered equity trading fees by 28.5 percent in an attempt to boost volume while the benchmark Ibovespa underperforms most major emerging markets. The index has dropped 9 percent this year, while the MSCI Emerging Markets Index has risen 0.5 percent. Shares of the exchange have gained 2.5 percent this year.

To contact the reporter on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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