Bolsas y Mercados Espaoles (BME) posted a net profit of € 61.98 million in the first half of 2006, 22.8% up on the €50.5 millions recorded during the same period last year. Revenues grew by 17.8% to € 137.6 million. Operating costs in the second quarter increased by 2.6% compared to the same period last year. Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) showed a general improvement at € 91.9 million, 25.4% up on the same period last year. Earnings per share was € 0.74 from € 0.6 posted in the same period 2005, which represents a 22.8% year on year increase. The efficiency ratio, which values the expenses incurred in each revenue source, came down from 37.2% in the first half last year to 33.2% in the same period 2006.
“The net profit posted in the first half of 2006 almost equals the € 69 million posted throughout 2004, which was the company’s second financial year, and exceeds by far that posted in 2003, which was € 58.5 million,” says Antonio Zoido, Chairman, BME. “This solid trend shows that we are making solid progress in the shaping of a company with great growth potential, technologically advanced and equipped to confront any challenges in the international consolidation process”.
Javier Hernani, CFO of Bolsas y Mercados Espaoles, says that this solid growth has been driven by the improvement of the company’s efficiency ratio and the cost control carried out over the year together with a solid growth in the number of transactions on all BME markets.
In Equities area, EBITDA grew by 44% to € 47.1 million. The accumulated value of trading to June increased by 25.2% on the same period 2005 to € 533.38bn. The number of transactions grew by 33.4%. On the AIAF Fixed Income Market the outstanding amount of all private fixed income securities admitted to listing on the corporate debt market stood at € 513.81 bn to June, 36.5% up on the first half 2005.
Revenues from the derivatives business area to June were € 12 million, up 17.9% on the same period 2005. The EBITDA figure was € 6.2 million, posting a 37.5% year on year increase. The accumulated trading volume was 25.2 million contracts, 28.3% up on 2005. The open position at 30 June 2006 was 7.2 million derivatives contracts, 48.2% up on the previous year. In the Clearing and Settlement area, revenues to June came in at € 29.4 million, up 10.7% on the same period 2005. The solid revenues have generated EBITDA of € 23 million, representing a 12.8% increase on the same period last year. The combined nominal amounts for the equity, private and public debt markets increased 16.9% to € 961.29 bn.
Trading volume on the Warrants and Certificates market to June was €1.53 bn, 42.2% up on the year 2005 and the number of trades grew by 49.7%. The market capitalisation of companies listed on the BME markets at 30 June 2006 reached € 938.26 bn, increasing 23.3% on the previous year. The total volume of admissions to listing on the Spanish private fixed income market, AIAF was € 245.42 bn, 19.2% up on the same period 2005. 6 companies were admitted to trading: Renta Corporacin, Parquesol, Grifols, Astroc Mediterrneo, General de Alquiler de Maquinaria and Tcnicas Reunidas.
Operating revenue from Information during the first half grew by 18.5% to 11.7 million euros. EBITDA increased by 28% to € 8.1 million. Revenues from IT and Consulting in the first half increased by 37.9% on the previous year to € 5.9 million. Operating costs in this unit reached € 3.7 million, 14.7% up on the same period 2005 and EBITDA was € 2.2 million, 110.6% up on the year.
There have been a number of new developments. Visual Trader, a BME company leader in services and financial market access Systems, announced in March the revamp of its technological platform. The aim of the improvements was to offer the major domestic banks and brokers greater speed in the reception of market prices and a decisive edge in their trading operations. Since June, MEFF has managed the guarantees, collection and payments of the electricity tariff adjustment services of the system operator, Red Elctrica de Espaa (REE). These new functions, which affect all agents in the power production market, involve the extension of the counterparty services to nonfinancial markets On May 29th, the Mercado Alternativo Burstil (MAB) started operations. As at 30 June 2006 99 SICAVs had been admitted to trading. BM has promoted the development of MAB to meet the demands of certainshares which, due to their specific features, require special treatment. The market will help SICAVS in the obligation established by the new collective investment regulations to guarantee liquidity for the shares.
On 20 July 2006 trading in ETFs began on the Spanish exchange. On March 31st, BME granted 4 licences on the IBEX 35 to Barclays Global Investors, BBVA Gestin, Lyxor Asset Management and Santander Asset Management, for the marketing of the first Exchange Traded Funds (ETFs) on the Spanish market.