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

Executive summary

• Total revenues reached R$2,711.4 million in 3Q24, up 8.9% year-over-year, with broad-based growth across all business segments, highlighting the resilience and diversification of the business model.

• Net income rose 12.1% year-over-year to R$1,204.5 million, with R$1.3 billion 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.

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

• Expenses fell 7.9% year-over-year, mainly due to the end of Cetip-related amortization.

Financial highlights

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

• Recurring EBITDA reached R$1,706.3 million, up 5.5% year-over-year, with a margin of 70.0%.

• Net income increased 6% year-over-year to BRL 1.2 billion.

• Financial result improved 88.1% year-over-year to R$73.6 million.

• Expenses were BRL 831 million, down 8% year-over-year due to the end of CETIP-related amortization; excluding this, expenses would have risen 14%.

Outlook and guidance

• Expense growth expected to align with or remain below inflation for 2025 and subsequent years.

• Full-year expenses projected at the lower end of guidance, with a more linear trend compared to 2023.

• 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.