B3 - Brasil, Bolsa, Balcão (B3SA3) Q3 2024 earnings summary

Executive summary

• Total revenues reached R$2,711.4 million in Q3 2024, up 8.9% year-over-year, with broad-based growth across all business segments and resilience despite a challenging cash equities market.

• Recurring net income rose 5.8% to R$1,226.0 million, while net income increased 12.1% year-over-year to R$1,204.5 million.

• Growth was driven by diversified segments, including listed derivatives, OTC, infrastructure for financing, and technology/data services.

• R$1.3 billion was distributed to shareholders via dividends, interest on capital, and share buybacks.

• Cash equities' share of total revenues declined to 21% in Q3 2024 from 37% during the pandemic, reflecting successful diversification.

Financial highlights

• Recurring EBITDA reached R$1,706.3 million, up 6% year-over-year, with a recurring EBITDA margin of 70.0%.

• Net revenues were R$2,435.9 million, up 8.3% year-over-year.

• Expenses fell 7.9% year-over-year to R$831.1 million, mainly due to the end of Cetip-related amortization; adjusted expenses rose 14.7% year-over-year due to higher personnel and data processing costs.

• Financial result improved to R$73.6 million, up 88% year-over-year.

• Cash and financial investments stood at R$16,568 million at quarter-end.

Outlook and guidance

• Expense growth expected to align with or remain below inflation for 2025 and subsequent years, with full-year expenses projected at the lower end of guidance.

• Expense trend expected to stabilize in 4Q24, with no additional increases anticipated.

• Financial leverage guidance for 2024 revised from 2.0x to 2.3x following new debenture issuance.

• Robust product pipeline for 2025, with new launches expected to drive both revenue and related expenses.

• Management highlights resilience in revenue growth drivers and ongoing diversification, despite continued challenges in the cash equities market.