Bolsa Mexicana (BOLSAA) Q4 2024 earnings summary

Executive summary

• Delivered strong quarterly and full-year results, with Q4 revenue up 12% to 1,183 million pesos and full-year revenue up 6% to 4,165 million pesos, driven by higher trading volumes, derivatives contract conversion, and favorable FX movements.

• Net income rose 14% in Q4 to 467 million pesos and 9% for the year to 1,637 million pesos; EPS increased 16% in Q4 to 0.83 pesos and 10% for the year to 2.92 pesos.

• Strategic initiatives included new commercial and marketing leadership, technology upgrades, and the launch of a new data division.

• Approval received for Central Counterparty Clearing House for Bonds, with operations expected to start in Q3 2025.

• Ongoing investments in technology and post-trade infrastructure, including the Nasdaq post-trade platform for Indeval.

Financial highlights

• Q4 EBITDA grew 13% to 671 million pesos with a 59% margin; full-year EBITDA up 6% to 2,388 million pesos, margin stable at 57%.

• Q4 operating income increased 16% to 621 million pesos; full-year operating income up 7% to 2,159 million pesos.

• Operating expenses for 2024 were 2,006 million pesos, up 5%, mainly due to wage increments, technology, and sub-custody costs.

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

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

Outlook and guidance

• Management expects continued volatility and uncertainty, with benefits from regulatory reforms, new product offerings, and higher long-term debt issuances.

• 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; no specific forward guidance provided.

• Four IPOs in the pipeline, with strong interest from new issuers due to regulatory changes.

• Company maintains a strong cash position and plans to continue its share buyback program.