Brazil's B3 reports7% revenue growth in Q4 despite macroeconomic volatility

B3 reported a recurring net profit of R$1.2 billion ($208 million) for the fourth quarter of 2024, reflecting a 13.6% increase compared to the same quarter in 2023 but a 2% decline from the previous quarter.

Total revenue came in at R$2.67 billion, marking a 7.0% year-over-year rise but a 1.6% drop from the previous quarter.

Recurring EBITDA reached R$1.60 billion, up 9.5% from the prior year but down 6.4% sequentially.

B3 earnings deep-dive

B3 said in the statement:

In another quarter marked by a volatile macroeconomic scenario, B3’s diversified business model proved to be effective."

In the listed derivatives segment, the average daily volume (ADV) totaled 6.1 million contracts, remaining in line with the same period last year.

A key highlight was the continued growth in Bitcoin Futures, which closed the quarter with an ADV of 206,000 contracts, contributing R$42.8 million in revenue.

In the OTC segment, the issuance of fixed-income instruments rose 13.8% year-over-year, while the outstanding balance increased 23.9%.

This growth was primarily driven by a 16.2% rise in corporate debt issuance, reflecting the expansion of the local debt market.

In Treasury Direct, investor participation continued to rise, with the number of investors increasing 15.5% YoY, while the outstanding balance grew 13.0% compared to the previous year.

The cash equities market saw a strong performance, with the average daily traded volume (ADTV) reaching R$25.6 billion, marking a 5.5% year-over-year increase.

Within this segment, ETFs grew by 39.1%, BDRs surged by 91.5%, and Listed Funds increased by 43.1%, highlighting the success of B3’s efforts to strengthen its core business through the continuous launch of new products.

In the Infrastructure for Financing Unit, revenue would have grown by 11.7% if excluding the Desenrola program.

This increase was primarily driven by a 14.9% rise in the number of financed vehicles, reflecting strong demand in the segment.

Meanwhile, revenue from the Technology, Data, and Services segment saw a 9.7% increase.

This growth was supported by a 7.0% rise in users of the OTC platform and a 4.7% increase in revenues from Data and Analytics.

B3 performance on key metrics

In the quarter, B3 invested R$111.0 million, primarily in technological upgrades across all business segments.

These investments focused on capacity expansion, security enhancements, and the development of new functionalities and products to strengthen the company’s infrastructure and service offerings.

At the end of 4Q24, B3’s gross debt stood at R$13.4 billion, with 84% classified as long-term and 16% as short-term. This debt level corresponds to 2.0 times the company’s recurring EBITDA over the last 12 months.

Total expenses for the quarter amounted to R$908.2 million, reflecting a 15.3% decline.

This decrease was mainly attributed to the completion of the amortization of intangible assets recognized during the Cetip merger.

Excluding this effect, expenses would have increased by 0.8%, remaining in line with 4Q23.