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

Executive summary

• Total 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 increased 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.

• Strong performance in derivatives, OTC, infrastructure for financing, and technology segments offset weaker cash equities.

• Total expenses decreased 15.1% year-over-year, mainly due to the end of Cetip goodwill amortization.

Financial highlights

• Listed derivatives revenue increased 10% year-over-year, driven by higher volatility and pricing adjustments.

• OTC market revenues grew 16.5%-17% year-over-year, led by strong local fixed income and DCM activity.

• Cash equities ADTV fell 11.2% year-over-year to R$23.9 billion but remained stable sequentially.

• Infrastructure for Financing posted 33.9%-34% revenue growth, aided by the Desenrola program and auto industry recovery.

• Technology, Data and Services revenue grew 11%-11.5%, with Neurotech contributing R$29-32 million.

Outlook and guidance

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

• No significant increase in CapEx expected; investments will focus on platform evolution and new products.

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

• Management highlights continued growth in derivatives, OTC, and technology segments.

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