MEXICO CITY--(BUSINESS WIRE)--The Mexican Stock Exchange (Bolsa Mexicana BMV), home to some of the world’s leading financial companies, announced strong fourth-quarter and 2010 financial results, which were driven by increased trading volume and greater market access. Fourth-quarter revenues were 524.4 million pesos (US$ 43 million), an increase of 79.8 million (US$ 6.5 million) or 17.9 percent versus the same period in 2009. Total 2010 revenues rose to 1,890.8 million (US$ 155.2 million), a nearly 22 percent jump over last year.
Revenues were driven by increased cash market activity, which impacted BMV’s cash equity and custody businesses; the recovery of the derivatives market and increased access by International market participants.
In addition, fourth quarter operating income amounted to 238.3 million pesos (US$ 19.5 million), increasing 70.4 percent from the same period last year. For the full year, operating income amounted to 787.3 million pesos (US$ 65 million), growing 40.9 percent from 2009. BMV’s cash balance at the end of the quarter was 2,488 million pesos (US$ 204.1 million).
Overall trading volume on the Exchange increased by more than 50 percent. In addition, BMV had six Initial Public Offerings (IPOs) during the year, including the largest ever on the Mexican market, OHL. A record 47 billion pesos (US$ 3.85 billion) were raised in the equity markets and almost 240 billion pesos (US$ 20 billion) in medium and long term debt.
“2010 was indeed a banner year for the BMV Group as we saw an increase in interest in our markets and witnessed impressive growth in trading volume following a concerted effort to streamlined market access to new pools of potential traders,” said Luis Téllez, Chairman and CEO of BMV Group. “Most importantly, we have put ourselves in position for growth in the future with further market enhancements and connections to international capital markets.”
Additional 2010 Exchange highlights include:
- BMV Group continues to explore agreements with US and International exchanges in order to expand global access to the market and answer the growing demand for Latin American financial products. BMV signed an order routing agreement with the Chicago Mercantile Exchange (CME), which will open the Mexican derivatives market to the rest of the world and give local participants access to CME products and liquidity.
- BMV implemented new trading regulations during the year that comply with international standards. Furthermore, BMV made progress in direct market access (DMA) and high speed co-location services, allowing for more efficient access for high frequency traders and other sophisticated investors around the globe. In fact, the number of access points to the exchange has grown by 61 percent and BMV estimates that close to 30 percent of trading volume comes from high frequency trading.
- The board of directors agreed to propose to the shareholder assembly the payment of a 540 million peso (US$ 44.3 million) dividend. This is equivalent to 91 cents (US$ .07cents) per share and represents 87% of BMV’s 2010 net income. Considering the capital reduction performed in September, BMV had the second highest dividend yield in the Mexican market at 6.8 percent.
BMV Financial Highlights
| 4Q 10 | 2010 | |||
| Revenues amounted to $524 million pesos (US$ 43 million) | Revenues amounted to $1,891 million pesos (US$155.2 million) | |||
| Expensed decreased 6.1% | Expensed increased 10.9% | |||
| Operating margin was 45.4% | Operating margin was 41.6% | |||
| EBIDTA increased 63.0% | EBIDTA increased 36.7% | |||
| EBIDTA margin was of 47.5% | EBIDTA margin was of 44.2% | |||
|
Net income totaled $186 million pesos
(US$ 15.3 million) |
Net income totaled $621 million pesos
(US$ 51 million) |
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About BMV Group:
BMV Group is a fully integrated Exchange Group that operates cash, listed derivatives and OTC markets for multiple asset classes, including equities, fixed income and exchange traded funds, as well as custody, clearing and settlement facilities and data products for the local and international financial community.
BMV is the second largest stock exchange in Latin America with a total market capitalization of over US$453.8 billion. The Exchange is home to some of the most recognizable and profitable global corporations, including: beverage giant Grupo Modelo, whose brands include Corona Extra and Pacifico; América Móvil, one of the largest telecommunications companies in the world; CEMEX, the world's biggest building materials supplier; and Televisa, the largest media company in the Spanish-speaking world, among many others. In addition, MexDer (the Mexican Derivatives Exchange) is also part of BMV Group and is the leading marketplace for trading benchmark Mexican derivatives products.