Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- B3 SA - Brasil Bolsa Balcao (BOLSY, Financial) reported a 6% increase in EBITDA, reaching 1.7 billion reais with a recurring EBITDA margin of 70%.
- Net income also grew by 6%, totaling 1.2 billion reais during the quarter.
- The company returned 516 million reais to shareholders through dividends and interest on capital, and executed share buybacks worth 736 million reais.
- B3 SA - Brasil Bolsa Balcao (BOLSY) launched new futures and options contracts on the small cap B3 index, expanding its product offerings.
- The company successfully issued 1.7 billion reais in debt, taking advantage of favorable market conditions to reinforce its cash position.
Negative Points
- Expenses increased by 14% compared to the third quarter of 2023, driven by seasonal impacts and project accelerations.
- There were extraordinary expenses related to consultancy projects for strategic initiatives.
- The company revised its leverage guidance from two times gross debt to EBITDA to 2.3 times, indicating increased financial leverage.
- Operational figures for listed derivatives in October were below the average seen in previous months, raising concerns about future performance.
- The competitive environment remains challenging, with potential new entrants aiming to launch by the end of 2025 or 2026.
Q & A Highlights
Q: Can you provide more color on cost control going into Q4 and expectations for expenses in 2025?
A: We aim to meet our guidance by managing expenses better throughout the year, avoiding high concentration in Q4. For 2025, we plan to align expense growth with inflation, slightly above or below, maintaining this approach in the coming years.
Q: Regarding new initiatives like Neurotech, when do you expect positive net margins?
A: Neurotech is already profitable and generates cash. We aim to grow revenues sustainably through new products and expanding client bases, ensuring healthy cash flow generation.
Q: How do you perceive competition and potential regulatory changes impacting your business?
A: We haven't seen significant changes in competition recently. Our focus is on client demands, innovation, and maintaining leadership. Regarding regulation, the main discussion is on order internalization, but no significant changes are expected soon.
Q: Can you discuss the performance of listed derivatives revenue and expectations moving forward?
A: Monthly operational performance can vary, but we expect derivatives to remain a strong revenue source. We've implemented successful tariff changes and product developments, like Bitcoin futures, which performed well despite traditional contracts' fluctuations.
Q: What is the potential for Bitcoin futures, and how do incentives impact revenue?
A: Bitcoin futures have significant potential, though it's hard to quantify precisely. We see room for growth, especially with institutional investors. Current incentives involve paying intermediaries, but this will decrease over time.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
