UPDATE 1-Brazil's BM&FBovespa misses profit estimates on revenue, expenses
(Adds details on earnings from paragraph 3)
SAO PAULO Feb 10 (Reuters) - BM&FBovespa SA, Brazil's sole listed financial bourse, missed fourth-quarter profit estimates on Tuesday as revenue fell short of expectations and data processing and outsourcing expenses surged.
São Paulo-based BM&FBovespa earned 232.8 million reais ($82.3 million) in the quarter, well below the average forecast of 267 million reais in a Reuters poll of analysts. Profit fell 2.5 percent on a quarterly basis, but rose 28.5 percent from a year earlier, according to a statement.
Management led by Chief Executive Officer Edemir Pinto plan to discuss results at an event early on Wednesday.
While revenue at the BM&F derivatives and Bovespa equities segments were in line with the poll's forecasts, sales deductions stemming from diverse taxes jumped. As a result, net revenue totaled 533 million reais in the quarter, below the poll's estimate of 551 million reais.
Gains in transaction volumes seen during October and November are unlikely to extend into this year, though. BM&FBovespa said this week that average daily trading equity volumes tumbled 9.4 percent in January.
Sales, general and administrative expenses topped the poll's estimates, and totaled 250 million reais. Data processing expenditures jumped 45 percent on a quarterly basis, while outsourcing-related expenses climbed 59 percent in the period.
The seasonal effects that often drive up revenue at banks and other non-bank financial firms fail to apply to market infrastructure companies like BM&FBovespa and Cetip SA Mercados Organizados, whose earnings are linked to capital markets activity.
This year, BM&FBovespa faces a challenging business outlook as the economy grapples with two years of stagnation, slumping commodity prices that are hampering export revenue, and persistently high inflation.
A decision to scrap a partnership with rival Bolsa Brasileira de Mercadorias led BM&FBovespa to book a charge of 7.4 million reais in the fourth quarter.
($1 = 2.834 Brazilian reais) (Reporting by Guillermo Parra-Bernal; Editing by Lisa Shumaker and Andrew Hay)
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