Bolsa Mexicana (BOLSAA) Q4 2024 earnings summary

Executive summary

• Delivered strong quarterly and full-year results with double-digit growth in revenues, EBITDA, net income, and EPS, driven by increased trading activity, post-trade services, and a positive impact from derivatives contract conversions and FX movements.

• Full-year 2024 revenue reached 4,165 million pesos, up 6%; net income rose 9% to 1,637 million pesos; EPS increased 10% to 2.92 pesos.

• Strategic initiatives included new commercial and marketing leadership, technology upgrades, creation of a data division, and approval for the Central Counterparty Clearing House for Bonds.

• Expenses rose 5% for the year, mainly due to personnel, technology, and custody fees.

Financial highlights

• Q4 2024 revenues exceeded 1,138 million pesos, up 12% year-over-year, with EBITDA up 13% to 671 million pesos (59% margin); net income increased 14% to 467 million pesos.

• Full-year EBITDA was 2,388 million pesos (57% margin); operating income up 7% to 2,159 million pesos.

• Earnings per share for Q4 were 0.83 pesos, up 16%; full-year EPS was 2.92 pesos, up 10%.

• Dividend yield maintained above 6%; 2.05 pesos per share dividend declared, representing 70% of net income.

• CAPEX for 2024 was 259 million pesos, up 38% year-over-year, focused on technology and post-trade transformation.

Outlook and guidance

• Management expects continued volatility and increased activity in transactional and post-trade businesses, with benefits from regulatory reforms and new product launches.

• CapEx for 2025 projected to be similar to 2024, focused on technology and post-trade infrastructure.

• OpEx expected to grow at or slightly above inflation.

• Four IPOs in the pipeline, with one already approved, and robust debt issuance expected.

• Strong cash position maintained, with ongoing share buyback program.