B3 - Brasil, Bolsa, Balcão (B3SA3) Q4 2024 earnings summary

Executive summary

• Total revenue for 4Q24 reached R$2,667.8 million, up 7.0% year-over-year, with diversified growth drivers and new product launches like Bitcoin Futures supporting performance amid market volatility.

• Recurring EBITDA rose 9.5% year-over-year to R$1,597.6 million, with a margin of 67.2%.

• Recurring net income for 4Q24 was R$1,201.0 million, a 13.6% increase year-over-year; reported net income increased 28.7% to R$1,178.5 million.

• Shareholder distributions in 4Q24 totaled R$1.8 billion, including R$1.5 billion in buybacks and R$337 million in interest on capital.

• The business model benefited from strong derivatives, technology, and OTC growth, offsetting weaker cash equities.

Financial highlights

• Net revenues for 4Q24 were R$2,399.2 million, up 7.0% year-over-year.

• Expenses fell 15.3% year-over-year, mainly due to the end of Cetip goodwill amortization.

• Adjusted expenses for 2024 were below the midpoint of guidance, reflecting disciplined cost control.

• Cash and financial investments stood at R$15,257 million at year-end.

• Operating income rose 27.5% year-over-year to R$1,491.0 million, with a margin of 62.1%.

Outlook and guidance

• No specific volume or revenue guidance for equities due to market uncertainty, but management sees stability with potential upside from volatility and product diversification.

• 2025 guidance: adjusted expenses of R$2.26–2.45 billion, capex of R$240–330 million, revenue-linked expenses of R$340–440 million, and payout ratio target of 90–110%.

• Payout ratio guidance for 2025 set at 90%-110%, with a tilt toward buybacks (around 70% of distributions) depending on share price and market conditions.

• Continued innovation expected, with new crypto derivatives and other products in the pipeline.

• Strategic focus on stimulating credit supply, digitalizing fixed income, and expanding retail investor access.