BOLSA MEXICANA DE VALORES, S.A.B. DE C.V. 2nd QUARTER 2023 RESULTS
Mexico City, July 18th, 2023. - Bolsa Mexicana de Valores, S.A.B. de C.V., ("the Bolsa or the BMV")
(BMV: BOLSA A) today announced its results for the second quarter of 2023, highlighting:
2Q2023 VS. 2Q2022
- Revenues reached 946 million pesos, 52 million or 5% lower compared to 2Q22 explained by: i) lower trading in transactional businesses, ii) fewer cross-border transactions in the global market and iii) unfavorable exchange effect on dollarized services after the appreciation of the peso MXN against the dollar USD.
- Expenses increased 8% due to higher personnel expenses, technological developments and implementations, as well as building renovations at BMV HQ.
- EBITDA was registered at 521 million pesos with a margin of 55% in 2Q23. Adjusted EBITDA for 6M23, excluding non-recurring items from 1Q22, decreased 7% which is partly by the exchange rate impact of 38 million pesos.
- Net income amounted to 356 million pesos.
FINANCIAL HIGHLIGHTS (1)
2Q23 | 2Q22 | Var % | 6M | 6M | Var % | |
2023 | 2022 | |||||
Revenues | 946 | 997 | -5% | 1,980 | 2,148 | -8% |
Expenses | 483 | 447 | 8% | 954 | 896 | 6% |
Operating Income | 462 | 551 | -16% | 1,025 | 1,252 | -18% |
EBITDA | 521 | 607 | -14% | 1,141 | 1,364 | -16% |
EBITDA Margin | 55% | 61% | -573bps | 58% | 63% | -587bps |
Adjusted EBITDA | 521 | 603 | -14% | 1,141 | 1,230 | -7% |
Adjusted EBITDA Margin* | 55% | 61% | -557bps | 58% | 61% | -344bps |
Net Income | 356 | 404 | -12% | 771 | 883 | -13% |
CAPEX | 96 | 27 | 261% | 120 | 36 | 232% |
OPERATIONAL HIGHLIGHTS
2Q23 | 2Q22 | Var % | 6M | 6M | Var % | |
2023 | 2022 | |||||
ADTV -Equity(1)(2) | 14,258 | 19,289 | -26% | 16,321 | 20,322 | -20% |
Futures - Volume (3) | 36,316 | 40,952 | -11% | 42,274 | 36,609 | 15% |
Swaps Notional Value (1) | 278,344 | 103,479 | 169% | 419,154 | 233,014 | 80% |
Margin Deposits (1) | 33,479 | 33,397 | 0% | 35,761 | 31,543 | 13% |
(1) Million pesos (2) Average Daily Traded Value (3)Daily Average
During the second quarter of 2023, BMV's revenues decreased by 52 million pesos compared to the same quarter of 2022 due to lower equity trading and fewer cross-border transactions in Indeval, as well as an adverse exchange rate effect. Expenses increased 37 million pesos explained by higher personnel expenses and technology costs.
In 6M22, BMV Group registered non-recurringrevenue in Indeval and SIF ICAP for 133 million pesos. Adjusted EBITDA up to June decreased 7% and EBITDA margin was 58% for the semester.
Please contact Luis René Ramón, Director of Investor Relations, +52 (55) 5342 9027 bmvinvestors@grupobmv.com.mxfor any queries you may have.
REVENUES
During second quarter of 2023 the exchange rate, USDMXN, reached a minimum and maximum of
- and 18.33 pesos per U.S. dollar, respectively, and for the quarter the exchange rate closed at
- The average USD/MXN exchange rate was 17.72, while the previous year it was 20.04, resulting in an appreciation of the peso MXN of 12%. Moreover, INEGI published the inflation rate estimate for 2022 at 5.06% and the Central Bank (Banco de México) maintained the reference interest rate at 11.25%. In the U.S., the Federal Reserve set the interest rate between 5.0% - 5.25%. In this environment, BMV's revenues for the second quarter of 2023 amounted to 946 million pesos.
Quarterly Revenues (1)
2022
2023
1,150 | |||
1,034 | 997946 | 979 | 973 |
0 0
1Q 2Q 3Q 4Q
(1) Million pesos
CAGR(2) +4.7% | ||||||
1,998 | 2,148 | 1,980 | ||||
1,948 | ||||||
1,760 | 1,729 | |||||
1,507 | ||||||
2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
(2) Million pesos
Revenues Detail (1)
2Q23 vs. 2Q22 | 6M 2023 vs. 6M 2022 | |||
Var $ | Var % | Var $ | Var % | |
Equities | -26,002 | -19% | -40,709 | 0 |
Equities trading- BMV | -18,460 | -22% | -28,757 | -16% |
Equities clearing- CCV | -7,542 | -14% | -11,952 | -11% |
Derivatives | -3,055 | -6% | 6,400 | 6% |
MexDer | -2,462 | -9% | 307 | 1% |
Asigna | -593 | -2% | 6,094 | 11% |
OTC (SIF ICAP) | 2,524 | 1% | -14,917 | -4% |
Capital Formation | 614 | 1% | 6,973 | 3% |
Listing fees- BMV | 3,217 | 30% | 1,588 | 7% |
Maintenance fees- BMV | -2,603 | -2% | 5,384 | 2% |
Central Securities Depository | -37,222 | -13% | -160,943 | -23% |
Information Services | 12,513 | 7% | 36,743 | 11% |
Price Vendor- Valmer | 2,980 | 6% | 22,527 | 24% |
Market Data | 9,533 | 8% | 14,216 | 6% |
Others | -1,028 | -3% | -1,426 | -2% |
Total | -51,655 | -5% | -167,880 | -8% |
Thousand pesos
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Equity Trading and Clearing
Cash Equities revenue, which mainly comprises Local and Global Market activities, was 114 million pesos, 26 million or 19% lower than the second quarter 2022.
Trading revenues decreased by 18 million pesos or -22% to 67 million because of lower value traded. The average daily trading value (ADTV) for the second quarter of 2023 was 14,258 million pesos, 26% lower compared to the second quarter of the previous year. The local market decreased 7%, while the global market dropped 46%. Additionally, the global market participated with 36% of the total ADTV in the second quarter of 2023 compared to 49% in 2Q22.
In the year-to-dateresults, trading revenue was down 29 million or -16% to 148 million pesos. During the first the first half of 2023, the ADTV was 16,321 million pesos, down 20% compared to the 6M22. The BMV's market share in 2Q23 was 84%, while in 2Q22 it was 91%. The difference is due to regulatory changes regarding the allocation of brokerage house trades that came into effect in August 2022.
Stock market operating highlights - Equities
2Q23 | 2Q22 | Var % | 6M | 6M | Var % | |
2023 | 2022 | |||||
Total Market | ||||||
Average daily value traded (1) | 14,258 | 19,289 | -26% | 16,321 | 20,322 | -20% |
Daily average volume (2) | 251,739 | 267,329 | -6% | 238,050 | 268,688 | -11% |
Local Market | ||||||
Average daily value traded (1) | 9,189 | 9,836 | -7% | 8,999 | 9,895 | -9% |
Daily average volume (2) | 245,092 | 255,374 | -4% | 228,168 | 256,175 | -11% |
International Quotation System (SIC) | ||||||
Average daily value traded (1) | 5,069 | 9,453 | -46% | 7,322 | 10,427 | -30% |
Daily average volume (2) | 6,647 | 11,955 | -44% | 9,882 | 12,513 | -21% |
- Million pesos
- Thousand shares
During the second quarter, cash equity clearing (CCV) decreased by 8 million pesos or -14% to 47 million against 2Q22. Up-toJune, CCV presented lower revenues by 12 million pesos or -11% to 101 million compared with the same period in 2022. The ADTV of the total Mexican cash equities market during the first half of 2023 was 19,465 million pesos, -13% versus 6M22. The difference between the equity value traded and clearing revenue is due to a lower number of cross trades in the period.
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Derivatives Trading and Clearing
Derivatives trading (MexDer) in the second quarter presented revenues for 24 million pesos, 2 million or -9% compared with 2Q22 because of lower trading of dollar futures, which was partially offset by higher trading in TIIE swaps, equity derivatives and IPC index futures.
In the first half of 2023, MexDer registered 53 million pesos in revenue, a similar result to that of last year. In this period, MexDer registered higher trading in dollar futures and swaps, however it was compensated by lower data sales.
It is important to mention that MexDer charges a different trading fee based on the type of contract. Therefore, changes in contract operations do not necessarily reflect revenue movements.
Futures operating highlights - Futures
2Q23 | 2Q22 | Var % | 6M | 6M | Var % | |
2023 | 2022 | |||||
IPC Index | 1,336 | 1,288 | 4% | 1,474 | 1,418 | 4% |
Mini IPC | 7 | 2 | 229% | 5 | 4 | 27% |
28 Day TIIE | - | - | - | 160 | 0 | - |
Currency | 31,560 | 38,949 | -19% | 37,029 | 34,660 | 7% |
Bonds | 81 | 210 | -62% | 80 | 194 | -59% |
Equity | 3,333 | 503 | 562% | 3,526 | 333 | 960% |
Total - Futures | 36,316 | 40,952 | -11% | 42,274 | 36,609 | 15% |
Swaps TIIE 28 | 44,894 | 16,425 | 173% | 33,532 | 18,641 | 80% |
TOTAL | 81,211 | 57,377 | 42% | 75,806 | 55,250 | 37% |
Average Daily Volume |
TIIE 28 Swaps
2Q23 | 2Q22 | Var % | 6M | 6M | Var % | |
2023 | 2022 | |||||
Notional Value (1) | 278,344 | 103,479 | 169% | 419,154 | 233,014 | 80% |
(1) Million pesos
During the second quarter of 2023, derivatives clearing (Asigna) reported a similar revenue to 2Q22 at 28 million pesos mainly because average margin deposits were also similar in both periods at 33.4 billion pesos.
When compared with the same accumulated months of 2022, Asigna's revenues increased by 6 million or 12% to 60 million pesos mainly due to larger margin deposits +13% vs 6M22 and higher trading in swaps.
Asigna charges 2 basis points on the average margin deposits and different settlement fees based on the type of contract traded.
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Margin Deposits
2Q23 | 2Q22 | Var % | 6M | 6M | Var % | |
2023 | 2022 | |||||
Margin Deposits (1) | 33,479 | 33,397 | 0% | 35,761 | 31,543 | 13% |
(1) Million pesos
OTC Trading (SIF ICAP)
Revenue for SIF ICAP in 2Q23 was 184 million pesos, 3 million or 1% higher when compared with the same period in 2022. SIF ICAP Mexico's revenue was up 5 million pesos or 9% because of higher trading of interest rate swaps (IRS). On the other hand, the revenue in SIF ICAP Chile decreased by 2 million pesos or 2%. It is relevant to mention that in 2Q22 SIF ICAP Chile registered 4 million non- recurring revenue from VAT refunds.
As for the first semester, revenue decreased by 15 million or -4% to 372 million pesos. It is important to mention that, in the first semester of 2022, SIF ICAP Chile recorded non-recurring revenue from VAT refunds for an amount of 37 million pesos. This item has no impact on personnel variable compensation.
Excluding non-recurring items, SIF ICAP Mexico revenue increased 13% due to higher trading in swaps and SIF ICAP Chile revenue increased 4% in the first half of 2023. As a result of the variable compensation plan, a better performance in this business has an impact in personnel expenses and viceversa.
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Disclaimer
BMV - Bolsa Mexicana de Valores SA de CV published this content on 18 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 July 2023 07:34:08 UTC.
