Brazil’s BM&FBOVESPA Reports Mixed Results for 2016

Brazil’s largest exchange, BM&FBOVESPA, today reported its operating metrics for the fiscal year ending December 31, 2016, which saw a large retreat across its aggregated revenues, according to a corporate statement.

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During 2016, BM&FBOVESPA reported its total revenues of just R$2.57 billion ($831 million), which represents a growth of 4.8 percent year-on-year from R$2.45 billion ($792 million) in 2015. However looking at the revenues from trading, clearing and settlement (BM&F segment), the figure in 2016 came in at R$1.05 billion ($339 million), having fallen -2.2 percent year-on-year from R$1.07 billion ($347 million) by the end of the 2015 fiscal year.

Operating revenues from Bovespa segment were stronger over a year-on-year basis, yielding R$978 million ($316.35 million) in 2016 an increase of 8.3 percent over the previous year. Trading and post-trading revenues totaled R$959.2 million ($310.2 million), an increase of 8.8 percent over 2015. A look at the other revenues segment in the entire 2016 year, the performance was much more upbeat, as revenues not tied to volume traded reached R$548.2 million ($177.2 million) in 2016, a 13.9 percent increase year-over-year.

BM&FBOVESPA’s net income was also much lower in 2016, with a figure of R$1.44 billion ($467.7 million), down by 34.3 percent over 2015. Excluding extraordinary items, notably the reversal of a provision for tax payable relating to the divestment on CME Group shares in 2016, net income would have been R$1.81 billion ($586.8 million), a 7.1 percent increase over the previous year.