B3 has reported an recurring net loss of R$1.2billion ($208m) for the 4th quarter of 2024. This represents a 13.6% rise compared with the same quarter of 2023, but also a 2.2% drop from the prior quarter.
The total revenue was R$2,67 billion. This represents a 7.0% increase year over year but also a drop of 1.6% from the prior quarter.
The recurring EBITDA was R$1.60 Billion, an increase of 9.5% over the previous year. However, it fell 6.4% in the following period.
B3 earnings deep-dive
In the following statement, B3 says:
B3’s business model was effective in another volatile quarter.
The average daily volume of listed derivatives (ADV), which is the total number of contracts traded each day, was 6.1 millions, keeping pace with last year’s same-period figures.
The continued growth of Bitcoin Futures was a key feature, with an ADV closing the quarter at 206,000 contracts and R$42.8million in revenue.
The outstanding balance of the OTC segment increased by 23.9%, while fixed income instruments were issued at a 13.8% increase year over year.
The growth in debt was driven mainly by the 16.2% increase in the issuance of corporate bonds, which reflects the expansion of local debt markets.
Treasury Direct has seen a continued increase in investor participation. The number of investors increased by 15.5% year-over-year, and the outstanding balance rose 13.0%.
Cash equities showed a good performance. The average daily trading volume (ADTV), which reached R$25.6billion, was up 5.5% from the previous year.
ETFs grew 39.1% in this sector, BDRs soared by 91.5% and Listed Funds grew 43.1%. This shows the successful efforts of B3 to reinforce its core business by launching new products.
If the Desenrola Program was excluded, the revenue in the Infrastructure for Financing Unit would have increased by 11,7%.
The increase in sales was driven by the 14.9% growth in the number financed cars, which reflects the strong demand for the segment.
The Technology, Data, and Services division saw revenue increase by 9.7%.
The growth in revenue from Data and Analytics was boosted by an increase of 4.7% in the revenues and 7.0% in OTC users.
B3 performance on key metrics
In the third quarter of 2018, B3 spent R$111.0m, mostly on technological upgrades in all segments.
The company invested in capacity expansion and security improvements, as well as the creation of new products and functionalities to enhance its infrastructure.
The gross debt of B3 was R$13,4 billion at the end 4Q24. 84% were classified as long term and 16% short term. The debt is equivalent to two times the annual recurring EBITDA of the company.
The total expenses for the third quarter were R$908.2 millions, a decline of 15.3%.
The main reason for this decrease is the complete amortization of assets intangibles recognized as a result of the Cetip merger.
If this impact was excluded, the expenses would still have risen by 0.8% in 4Q23.
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