Bolsa Mexicana (BOLSAA) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 13% to MXN 1,057 million, with net income up 24% to MXN 410 million and EPS up 27% to MXN 0.73, driven by increased trading, cross-border transactions, and disciplined cost management.

• EBITDA reached MXN 609 million with a 58% margin, up 19% year-over-year.

• Expenses increased 6% year-over-year due to technology investments, higher sub-custody costs, and marketing.

• The group is focused on innovation, technology upgrades, and expanding services, including a new marketing division and ongoing Nasdaq platform implementation.

• Strategic reforms in Mexico's Securities Market Law aim to improve capital market access for medium-sized companies.

Financial highlights

• Q3 2024 revenue: MXN 1,057 million (+13% YoY); 9M24 revenue: MXN 3,027 million (+4% YoY).

• Q3 2024 EBITDA: MXN 609 million (+19% YoY), margin 58%; 9M24 EBITDA: MXN 1,717 million (+4% YoY), margin 56%.

• Q3 2024 net income: MXN 410 million (+24% YoY); 9M24 net income: MXN 1,170 million (+6% YoY).

• Q3 2024 EPS: MXN 0.73 (+27% YoY); 9M24 EPS: MXN 2.08 (+8% YoY).

• Q3 2024 CAPEX: MXN 50 million (+219% YoY); 9M24 CAPEX: MXN 154 million (+14% YoY).

Outlook and guidance

• Anticipates further monetary easing, a more stable FX environment, and increased market activity.

• Expects a negative revenue impact of MXN 90–110 million in 2025 due to competitive fee adjustments.

• No formal guidance on margins or revenue for next year, but management acknowledges a challenging outlook.

• Revenue growth supported by increased trading, cross-border activity, and FX tailwinds.

• Ongoing investments in technology and infrastructure expected to continue.