B3 - Brasil, Bolsa, Balcão (B3SA3) Q2 2024 earnings summary

Executive summary

• Gross revenues reached R$2,727.2 million in 2Q24, up 10.1% year-over-year and 10.6% sequentially, with growth across all business lines, especially listed derivatives and OTC segments.

• Recurring EBITDA rose 8.4% year-over-year to R$1,769.1 million, with a margin of 73.3%.

• Recurring net income was R$1,226.6 million, up 5.0% year-over-year and 8.5% sequentially; reported net income was R$1,244.1 million, up 18.2% year-over-year.

• Total expenses fell 15.1% year-over-year, mainly due to the end of amortization of intangibles from the Cetip acquisition.

• Shareholder distributions in the quarter totaled R$1.7 billion, including R$1.3 billion in share buybacks.

Financial highlights

• Net revenues were R$2,457.0 million, up 10.2% year-over-year and 10.6% sequentially.

• Recurring EBITDA margin was 73.3%, down 26 bps year-over-year but up 201 bps sequentially.

• Cash and financial investments stood at R$16,881 million at 2Q24, up from R$16,515 million a year ago.

• Gross debt at quarter-end was R$12.9 billion, 2.0x recurring EBITDA for the last 12 months.

• Earnings per share (basic) for Q2 was R$0.2246, up from R$0.1831 in Q2 2023.

Outlook and guidance

• No revision to financial leverage guidance for year-end 2024 following the R$4.5 billion debenture issuance.

• Expense growth is targeted at the lower end of guidance, with cost discipline maintained.

• Board approved an increase in the share buyback program limit from 230 million to 340 million shares.

• Strategic focus on democratizing capital markets, digital investment portability, and new index launches.

• Financial results expected to normalize after one-off impacts from liability management.