Reuters logo
Brazil's B3 books lower profit on merger costs, issues 2017 outlook
May 12, 2017 / 10:43 PM / 4 months ago

Brazil's B3 books lower profit on merger costs, issues 2017 outlook

SAO PAULO, May 12 (Reuters) - B3 Bolsa Balcão Brasil SA, Brazil’s largest exchange operator, posted a 56 percent drop in quarterly net income on Friday due to the costs of a merger creating the company out of rivals BM&FBovespa SA and Cetip SA Mercados Organizados.

Net profit fell from a year earlier to 209 million reais, far below a Thomson Reuters consensus of 504 million reais. Excluding one-time effects related to the merger, profit rose 10 percent to 524 million reais.

The newly formed exchange operator aims to invest 250 million-280 million reais and spend 1.05 billion-1.10 billion reais on operating expenses this year, the company said in its earnings release.

The company also forecast depreciation and amortization of 790 million -840 million reais and merger expenses of around 420 million reais this year - most of which fell in the first quarter.

Revenue grew 7 percent in the quarter from a year ago to 1.044 billion reais due to growth in all segments except for BM&F, which deals with financial and agricultural derivatives.

$1 = 3.1222 reais Reporting by Brad Haynes; Editing by Cynthia Osterman

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below