UPDATE 1-Brazil's BM&FBovespa beats profit estimate as revenue climbs
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SAO PAULO Aug 13 (Reuters) - BM&FBovespa SA, Brazil's sole listed bourse operator, beat second-quarter profit estimates on Thursday as political and economic turmoil in Latin America's largest economy propelled stronger-than-expected activity in the derivatives segment.
Net income at the São Paulo-based company rose to 318.27 million reais ($91 million) last quarter, above the Reuters poll estimate of 309 million reais. On a quarterly and annual bases, profit rose about 14 percent and 27 percent, respectively, BM&FBovespa said in a statement.
Uncertainty over Brazil's deteriorating political and fiscal situation led investors to increase trading of derivatives and currency instruments, in line with what BM&FBovespa had previously disclosed in monthly activity reports. The so-called BM&F derivatives segment jumped 33 percent, well above the poll's forecast of a 23 percent increase.
Net revenue totaled 554.6 million reais, topping the poll's average forecast of 531 million reais. Last quarter, the Bovespa equities segment rose 10 percent from the prior quarter, slightly above expectations.
The numbers indicate that BM&FBovespa is riding out Brazil's slump in a relatively comfortable position. The $2.1 trillion economy is flirting with the steepest recession in 25 years, tumbling commodity prices that hamper export revenue, and persistently high inflation that discourage trading of financial securities.
Management led by Chief Executive Officer Edemir Pinto plan to discuss results at a Friday event.
Sales, general and administrative expenses came in within forecasts. On a quarterly basis, expenses tumbled almost 11 percent, reflecting Pinto's efforts to contain payroll, outsourcing and marketing spending, the statement said.
Financial income rose sharply in the wake of higher interest rates, the statement said.
($1 = 3.5005 Brazilian reais) (Reporting by Guillermo Parra-Bernal; Editing by Bernard Orr)
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