• Revenue: Over 1.1 billion pesos, up 17% year-over-year.
• EBITDA: 640 million pesos with a 57% margin, up 17% year-over-year.
• Net Income: 437 million pesos, up 17% year-over-year.
• Earnings Per Share: 78%, up 18% compared to Q1 2024.
• Equity Trading Revenue: Up 4% year-over-year; average daily traded value grew 19% to 17.3 billion pesos.
• Derivatives Revenue: Increased 13%; average daily notional value for dollar futures up 21% to 340 million pesos.
• OTC Trading Revenue: Increased 8% with growth in Mexico and Chile.
• Capital Formation Revenue: Listings revenue increased 11%; maintenance segment revenue up 6%.
• Central Securities Depository (Indeval) Revenue: Grew 25%; assets under custody increased 11% to 40.9 trillion pesos.
• Information Services Revenue: Reached 205 million pesos, up 25% year-over-year.
• Operating Expenses: 585 million pesos, up 14% year-over-year.
• Capital Expenditure: 32 million pesos for the quarter.

• Warning! GuruFocus has detected 7 Warning Sign with BOMXF.

Release Date: April 23, 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 strong revenue growth, with revenues, EBITDA, and net income all increasing by 17% compared to the first quarter of 2024.
• The company is launching a new central counterparty (CCP) service for bonds, expected to start in Q3 2025, which could enhance their service offerings.
• Bolsa Mexicana de Valores SAB de CV (BOMXF) is implementing a new fee schedule for equity trading, which has not yet impacted their market share significantly.
• The company is focusing on expanding its retail market segment by reducing conversion fees for trades below $5000, potentially increasing retail trading activity.
• Bolsa Mexicana de Valores SAB de CV (BOMXF) is advancing its market data services by partnering with IPC to offer virtualized co-location services, expected to be ready by Q3 2025.

Negative Points

• Operating expenses increased by 14%, driven by higher personnel costs, technology expenses, and consultancy fees, which could impact profit margins.
• The company is facing regulatory delays in implementing new pricing structures and other initiatives, which could affect their competitive positioning.
• Despite strong revenue growth, the derivatives segment remains a small portion of overall revenues, limiting its impact on the company's financial performance.
• The company is experiencing increased expenses due to FX fluctuations, which could continue to affect financial results if exchange rates remain volatile.
• There is uncertainty regarding the timeline for the launch of new products, such as the mini USD and index futures, due to pending regulatory approvals.

Q & A Highlights

Q: How should we think about Bolsa's new pricing structure, and is there a deadline for its implementation once approved by the regulator? A: Jorge Alegria, CEO, explained that the new pricing structure will be implemented gradually, allowing flexibility to observe market reactions. The approval is expected soon, and there is typically a 3 to 6-month period for application. The potential impact of 100 million pesos mentioned last year is not expected to materialize fully this year.

Q: Can you explain the higher OpEx growth and whether it will continue throughout the year? A: Ramon Guemez Sarre, CFO, noted that OpEx growth is partly due to FX impacts and technology investments. The current rate of expenses is expected to continue, with some variability due to performance-related compensation. Revenue growth is anticipated to outpace OpEx growth.

Q: What is the impact of exchange rate movements and international market volatility on your operations? A: Jorge Alegria, CEO, stated that recent activity is primarily driven by market volatility rather than exchange rate movements. There has been no significant change in activity related to FX fluctuations or international market movements.

Q: Are there plans to use more Nasdaq technology in other parts of Bolsa's business? A: Jorge Alegria, CEO, mentioned that Nasdaq technology is currently used for post-trade services, and there are no immediate plans to expand its use to other segments. However, they are exploring proof of concept for market data management.

Q: What are the expectations for the new derivative products and their potential revenue impact? A: Jorge Alegria, CEO, indicated that while new derivative products are being launched, they are not expected to significantly impact revenue in the short term. The focus is on developing the retail segment, with a longer-term strategy to grow both cash equity and derivatives markets.

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