• 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.

• Warning! GuruFocus has detected 3 Warning Sign with BOMXF.

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.

Q: What is the status of the new pricing structure and its impact on market share and revenues? A: We are awaiting approval from the authorities for the new pricing structure. So far, there has been minimal impact on market share, which remained stable in January. The projected full-year impact of the new pricing structure could be MXN100 million, considered as a worst-case scenario.

Q: How will marketing expenses evolve, and what revenue lines are linked to these investments? A: We are focusing on digital marketing to expand our reach, particularly in the US. This includes podcasts, social media, and high-level events. The marketing expenses are not expected to be material, as we aim to achieve more with less.

Q: What are the expectations for CapEx and technological implementations in 2025? A: CapEx for 2025 should be similar to 2024, focusing on technological innovation in post-trade and evergreen projects. The first part of the new technology implementation is expected in 2026, with full operational capability by the first semester of 2027.

Q: What are the expectations for the Capital Markets business and top-line growth in 2025? A: The debt segment pipeline remains robust, with MXN30 billion to MXN35 billion expected in the coming months. We have four IPO requests and expect increased activity in derivatives and international segments due to market volatility and interest rate changes.

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