Reuters: US Dollar Report: UPDATE 1-Rising debt costs trigger BM&FBovespa's Q2 profit miss

Reuters: US Dollar Report Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

UPDATE 1-Rising debt costs trigger BM&FBovespa's Q2 profit miss Aug 7th 2012, 23:36 Tue Aug 7, 2012 7:36pm EDT * Second-quarter profit misses estimate in poll * EBITDA beats poll estimate as revenue surges * Expenses flat, again act as defining element * Company cuts estimate for expenses this year SAO PAULO, Aug 7 (Reuters) - BM&FBovespa, the world's No. 3 financial exchange, reported a second-quarter profit miss as financial expenses and taxes jumped, offsetting flat expense growth and record trading volumes. The São Paulo-based company earned 299.99 million reais ($147.8 million) in profit during the quarter, up 2 percent from a year earlier, according to a securities filing on Tuesday. Profit jumped 7 percent from 280.4 million reais in the first three months of the year. The result missed the average 317.7 million reais profit forecast by a Reuters poll of nine analysts mainly because the company's effective tax rate rose significantly and financial expenses climbed. Chief Executive Officer Edemir Pinto has focused on curbing expenses and ramping up trading and clearing platforms to prepare Brazil's sole exchange for the entry of rivals by the start of 2014. BM&FBovespa lowered its estimate for operating expenses this year to a range between 560 million reais and 580 million reais, from as much as 590 million reais previously. Financial expenses including debt servicing and hedging costs jumped 32 percent on a year-on-year basis, and 6.4 percent from the first quarter, after the Brazilian currency lost 11 percent of its value against the U.S. dollar. Income from investments plummeted after local interest rates fell to a record low in the quarter. Net revenue rose 15.7 percent on an annual basis to 541.2 million reais, below the 550.6 million reais predicted in the poll. Expenses fell 0.4 percent from a year earlier, driven by a 9.8 percent tumble in payroll costs and a drop of 20.7 percent in outsourced services. Marketing spending plummeted 55.4 percent. Earnings before interest, tax, depreciation and amortization - a measure of operational profitability known as EBITDA - jumped 29 percent to 403.8 million reais, slightly above the poll's forecast of 398.8 million reais in the period. Revenue per contract at the equities and derivatives segments fell 3.3 percent from the prior quarter, reflecting the higher volume of interest-rate derivatives traded in the period - a cheaper contract than those for currency and offshore rates futures. Cash-equity margins fell after the share of high-frequency trading rose slightly on a sequential basis. Management at both companies will discuss second-quarter results with investors at conference calls on Wednesday. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions