Bolsa Mexicana de Valores SAB de CV

BMV:BOLSAA

Earnings Call Analysis

Strong Financial Performance in Q3

In the third quarter of 2024, BMV Group reported robust financial results with revenues exceeding MXN 1 billion, marking a 13% increase compared to the previous year. The company's EBITDA reached MXN 609 million, reflecting a significant 19% year-over-year growth, largely attributed to heightened market activity and effective cost management. Notably, earnings per share surged by 27%, amounting to MXN 0.73. This performance underscores the company's resilience, especially after a challenging first quarter.

Year-To-Date Results and Business Line Contributions

For the first nine months of the year, BMV's revenue totaled over MXN 3 billion, with an EBITDA of MXN 1.7 billion, representing a 4% increase in both metrics year over year. The EBITDA margin was 56%. Revenue contributions came from diverse business lines: capital formation contributed 13%, transactional services comprised 36%, and information services made up 18%. This balanced revenue stream highlights BMV's diversified business model, ensuring stability amid market fluctuations.

Market Dynamics and Trading Performance

The trading environment displayed notable vigor, particularly in cash equities and derivatives. In cash equities, revenue surged by 20%, with an average daily traded value of MXN 17 billion, a 24% increase over the past year. Revenue from derivatives trading and clearing rose by 25%, indicating heightened investor engagement due to increasing market volatility. As a result, BMV retained a commanding 81% market share in equities, affirming its competitive position in the marketplace.

Impact of Competitive Pricing Changes

The competitive landscape remains dynamic, especially following BIVA's introduction of a new pricing structure that could lead to a price war. BMV expects this could have a negative revenue impact of MXN 90 million to MXN 110 million annually, approximately 1.9% to 2.2% of consolidated revenues, for 2025. This is a direct response to BIVA’s actions and emphasizes the need for BMV to adapt quickly to maintain market share.

Enhancing Infrastructure and Regulatory Developments

Looking ahead, BMV is focusing on strengthening its technological and regulatory frameworks, particularly with the anticipated rollout of central counterparty services for fixed income trading. The company is ready to launch these services pending regulatory approval and aims to initiate operations by the end of this year. This initiative is crucial as it targets improving trading efficiencies and expanding BMV’s offerings in response to market needs.

Future Strategies and Growth Initiatives

As part of its growth strategy, BMV aims to leverage its post-trade platforms and enhance customer engagement through a newly formed marketing division. This initiative is part of a broader effort to boost top-line growth while managing profitability amidst competitive pressures and potential revenue declines from changed pricing structures. Furthermore, amendments to regulations promoting easier access to capital markets, particularly for medium-sized enterprises, are expected to foster a vibrant financing environment.

Outlook and Strategic Goals

Overall, BMV Group is well-positioned to navigate upcoming challenges, particularly those posed by competitor pricing strategies. The company remains committed to innovation, customer satisfaction, and operational excellence as it targets sustained profitability and growth in the evolving financial landscape.

Earnings Call Transcript 2024-Q3

[Operator]

Greetings, and welcome to the Bolsa Mexicana de Valores Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ramón Güémez, Chief Financial Officer. Thank you. You may begin.

[Ramón Sarre, executive]

Thank you. Good morning, and welcome to Bolsa Mexicana de Valores Third Quarter 2024 Earnings Conference Call. Before proceeding, I would like to provide a brief safe harbor statement.

This presentation contains forward-looking statements and information related to Bolsa that are based on the analysis and expectations of its management as well as assumptions made and information currently available at Bolsa. Such statements reflect the current views of Bolsa related to future events and are subject to risks, uncertainties and assumptions. Many factors could cause the current results, performance or achievements of Bolsa to be somewhat different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic, political, governmental and business conditions, both in a global scale and in the individual countries in which Bolsa does business, such as changes in monetary policies and inflation rates and prices and business strategy and various other factors.

Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may vary considerably from those described herein as anticipated, believed, estimated, expected or targeted. Bolsa does not intend and does not assume any obligation to update these forward-looking statements.

I would also like to remind participants that today's call is being recorded and a replay of this call will be available online on October 24 at Bolsa's corporate website, www.bmv.com.mx. During this call, all figures are in Mexican pesos and compared to the third quarter of 2023, unless stated otherwise. This call is intended for the financial community only, and the floor will be open at the end to address any questions you may have.

Joining us for today's call are: Jorge Alegría, CEO; Claudio Vivian, CIO; José Manuel Allende, Chief Capital Formation, Markets & Information Services Officer; Roberto González, Chief Post-Trade Officer; Gabriel Rodríguez, SIF ICAP CEO; Alfredo Guillén, Managing Director, Equity Markets; José Miguel De Dios, Managing Director, Derivatives Markets; Luis Rene Ramon, Director of Investor Relations; and myself, Ramón Güémez.

With that, I would like to turn the call over to our CEO, Jorge Alegría.

[Jorge Formoso, executive]

Thank you, Ramón, and good morning, everyone. I hope you are all doing well today. We released our earnings results and slide deck yesterday evening, which provides comprehensive details of the third quarter of 2024 results, which we will be discussing during this call. Copies of our press release and slide deck are available at bmv.com.mx, under the Investor Relations tab.

I will begin by reviewing our financial results and offering a brief insight into the quarter and the overall market environment. Following that, I will provide updates on our ongoing projects, changes in regulations and the competitive landscape. Finally, we will conclude with a Q&A session, where you can ask any questions via the conference call line.

With that in mind, let's review the financial highlights in Slide #3. I am pleased to share that we have delivered a strong set of numbers, driven by increased activity in financial markets and post-trade services. BMV Group generated over MXN 1 billion in revenue, up 13%. EBITDA was registered at MXN 609 million, up 19%, as market activity rebounded and we maintained disciplined cost management. Earnings per share were MXN 0.73, up 27% for the quarter when compared to year-over-year.

On the next slide, we will go over the results for the first 9 months of the year. And after that, I will do a deep dive into each business line. As key financial highlights, the strong results in the third quarter mitigated the weaker performance seen in the first quarter of the year. With volatility returning to the market and interest rates declining, we have observed a surge in activity across transactional and post-trade operations.

Revenue was up 4%, reaching over MXN 3 billion. EBITDA was registered at MXN 1.7 billion, up 4%, and EBITDA margin was registered at 56% for the month up to September. Earnings per share were MXN 2.08 per share, up 8% year-over-year. Our strong performance reinforces our commitment to sustained growth and excellence.

Now please turn to the next slide on the revenue by business line. By capital formation, or the listing of equity, debt and alternatives as well as its annual maintenance, contributed this quarter with 13% of BMV Group revenue. Transactionals business, which consists of the equity trading and clearing, derivatives trading and clearing and OTC trading, generated 36% of revenue. Information services, made up of data analytics, indices, valuation and financial risk management services, had a 18% weight.

The Central Securities Depository, the Indeval, which is responsible for custody, settlement and global market services, mainly cross-border transactions, participated with 29% of net revenue. As we mentioned in the previous call, we anticipated a better second half of the year as we expected interest rates to start coming down and with that, more dynamism in the financial markets.

Please turn to Slide 6 to go over equity trading and clearing. Revenue in cash equities trading was up 20% when compared to the third quarter of last year. The average daily traded value at BMV was registered at MXN 17 billion, up 24%. The local market was up 12% while the global market increased 48%. Investor behavior, particularly in the global market is influenced by market volatility and the depreciation of the peso. And once again, BMV's market share was registered at 81%, which is consistent with the previous quarters. As for clearing in CCV, revenue was up 15% while the total average daily trading volume for both Mexican exchanges was 27%. This is explained by a higher number of cross-trades in the quarter, which requires registration but no clearing services.

Let's go on to the next slide to review derivatives. Revenue in derivatives trading and clearing was up 25% in the quarter, mainly due to higher trading swaps and IPC futures, also dollar futures. The average daily notional value for dollar futures was $268 million. This is down 19% while the open interest increased 23%. During the March rollover, market participants preferred to trade longer-term positions favoring December. So we missed the September rollover for this quarter.

On the other hand, the average daily notional value of swaps on the interest rate swaps increased 15% compared to the same period in 2023, reaching actually MXN 3.55 billion due to increased volatility in interest rates. In Asigna, the average margin deposits were MXN 50.5 billion for the quarter, showing an increase of 53%, and MXN 45.4 billion up to December, which is up 31%. This is attributed to the record high in the open interest of swaps and the excess margins deposit by our customers.

On Slide 8, let's discuss OTC trading results. In SIF ICAP, OTC trading and value-added services revenue decreased MXN 5 million or 3%. SIF ICAP Mexico dropped MXN 2 million, primarily due to the lower CO2 emissions compensations via the carbon credits from our Mexico CO2 platform. Meanwhile, revenue at SIF ICAP Chile was down MXN 3 million due to FX between CLP and MXN.

On Slide 9, we have the figures for capital formation. Listings revenue decreased MXN 1 million or 4% due to a lower number of issuance and long-term debt and follow-on offerings. You may remember that Traxion issued a follow-on for MXN 5 billion in the third quarter of 2023. As for this quarter, in short-term debt, 366 issuance were placed in the third quarter of 2024 compared to 327 issuance in 2023 while in the long-term section, 22 issuance compared to 24 issuance last year. No equity listings nor follow-ons during the third quarter, but it's relevant to mention that FIBRA Prologis and Fibra Monterrey conducted primary public and private offerings of certificates in the first quarter of the year of MXN 17.5 billion.

I would also like to mention that the secondary rules to the amendments of the Securities Market Law for simplified listings were published. BMV is carrying on a program called De Cero a Bolsa, which means from zero to the stock market, with the goal of explaining all participants, companies the benefits of issuing debt or equity in the market, the process to get there under the new rules.

Regarding maintenance, revenue was up 7% in 3 quarter '24, given that the number of outstanding issuance at the end of 2023 was slightly above the previous year. Furthermore, as September of 2024, BMV has 507 outstanding long-term debt issuance compared to 480 in December 2023, which could materialize in revenue growth for the upcoming years.

Moving on to the Central Securities Depository on Slide 10. We can show that Indeval's revenue was up 27%, driven by an increase in assets under custody, settlements and the number of cross-trade border transactions as well as a favorable exchange rate. Total assets under custody increased 12% to MXN 38 trillion. In the local market, the pension market reform continues to show its effect in the numbers, and we foresee a gradual but sustained benefit from this initiative over the next 6 years.

As for the global market, both FX and market performance played an important role in this quarter results. I also want to share that we are progressing with the implementation of the new platform to modernize Indeval and CCV's infrastructure. This is a 3-year project, and we will replace our in-house development with Nasdaq technology and pave the way for future new services.

Finally, let's move to Slide 11 for information services. This segment is composed of Market Data and Valmer. And it reached MXN 183 million in the third quarter of 2024, up MXN 5 million or 3%. It is relevant to mention that the depreciation of the Mexican peso against the U.S. dollar registered a positive impact of MXN 15 million in the third quarter. Excluding the exchange rate impact, revenues decreased by MXN 10 million or 6%, which is explained by some products and services cancellations in Market Data as our international clients rebalanced their portfolios and the withdrawal of a portfolio management services software that we had at Valmer, and it was used to sell.

In annual terms, the sales of this software represented MXN 16.4 million in revenues and MXN 15.7 million in expenses in 2023 under the consulting fees line. So as a result, we foresee no impact in operating revenue and bottom line from this cancellation of services. Overall, our diversified business model has been a key factor in our results. Looking ahead, we expect further monetary easing, a more stable foreign exchange environment and an increased activity overall in our financial markets.

Now let's look at our operating expenses in Slide 12. In the first 9 months of 2024, operating expenses were MXN 1.5 billion, up 4% or MXN 59 million, which are mainly explained by three concepts: MXN 15 million in personnel expenses, explained basically by annual wage increments; and MXN 30 million in technology and depreciation expenses due to the evergreen projects aimed at ensuring our platforms run smoothly and securely, along with the segregation of post-trade infrastructure and the clearing house for bonds; and also MXN 8 million is sub-custody as the value of the assets under custody abroad increased, which also generated, as we showed, additional revenue at Indeval.

Please turn to the next slide. I want to update you on the competitive landscape, our ongoing projects and changes in regulation. We maintain our leadership position in capital formation and equity trading due to the trust that customers have in BMV Group. Recently, our competitor received approval for a new fee schedule for equity trading and implemented a maker-taker pricing model.

In response, we are carefully analyzing the data and different scenarios to make appropriate adjustment to our fees. We have been already talking to the authorities in anticipation of this. We estimate our initial response will negatively impact our revenues by approximately MXN 90 million to MXN 110 million. Our approach will be fast and efficient in making these changes to retain our market share.

Our capital expenditure on technology during the months up to September of 2024 was MXN 154 million, up 14% and in line with our investment plans. The strategic steps we have taken to accelerate the technological evolution of BMV Group will enable us to serve our clients in the future. By embracing innovation, we are positioning ourselves to meet the growing demands of a rapidly changing market, ensuring that we remain a leader in the Mexican financial sector.

Currently, when discussing our growth projects, our primary focus is the rollout of the central counterparty services for fixed income, beginning with cash trading for Mexican government bonds. This project leverages our CCV financial market infrastructure, which currently only supports equity clearing. It is still pending regulatory approval. We have been making a lot of progress recently, and we remain in close communication with the financial authorities to pursue the final authorization this same year. A key prerequisite for initiating operations is ensuring that our trading platforms and clearing members are fully authorized and prepared to settle bonds through the new CCV.

Shifting to another very important development, the secondary rules to the amendments to the Mexican Securities Market Law. These were finally released. This reform is designed to enhance access to capital markets, particularly for medium-sized enterprises for both equity and debt financing. By simplifying regulatory requirements and reducing the costs and time frames involved, the reform aims to make it easier for issuers to tap into capital-raising opportunities, ultimately fostering a more inclusive and dynamic financial environment. Overall, this initiative reflects a commitment to strengthening the economic landscape by empowering companies of all sizes to thrive.

To sum up, BMV Group delivered strong recurring results in the third quarter of 2024, mainly due to higher trading in transactional businesses and post-trade services. With volatility returning to markets and interest rate decreasing, we have observed more dynamism in the financial landscape. Revenue for the quarter was up 13%, coming in at MXN 1.06 billion compared with MXN 933 million in the prior year third quarter. EBITDA margin was 58% and net income was recorded at MXN 410 million, reflecting a 24% growth. Earnings per share were MXN 0.74 or 27% higher than 3Q '23.

Lastly, I want to share with you that, yesterday, I presented my first views for next year's budget and our mid-term strategy to our Board, focusing on new services, leveraging our post-trade platforms and adding value through Market Data. All this was powered by a new customer development and marketing division, [ Indexchange ], [indiscernible] technology as well, supported by strengthening communication with our authorities and our customers.

I will keep you informed as we move forward, and you can be confident that our main priority will be accelerating top line growth in the coming years, all while ensuring we sustain high profitability. We are definitely excited about the opportunities this strategy and focus will create for BMV Group's success.

Thank you for connecting today, listening to my remarks. And together, we will drive innovation and growth in financial markets for a brighter future. Thank you very much. And alongside my colleagues, we will gladly address now any questions you may have.

[Operator]

[Operator Instructions] Today's first question is coming from Ernesto Gabilondo of Bank of America.

[Ernesto María Gabilondo Márquez, analyst]

Congrats on your results, the strongest year-over-year earnings growth for a quarter since the first quarter of 2020 and a nice expansion in the EBITDA margins, so congrats.

My first question will be on this BIVA's new pricing structure. We saw in the press release, they have three changes: one on maker-taker tariffs; a second one related to a commercial scheme structure in favor of lock rates and closing prices; and a third one, a liquidity supplier that I think is related to a rebate structure. So I don't know if you can elaborate on each of those pricing changes. What do you understand in each of them?

You were saying in your closing remarks that do you anticipate to have a prompt response. You are evaluating how to react. You also mentioned that maybe you can implement a strategy that could have a negative impact between MXN 90 million and MXN 120 million. I just want to double-check these numbers. But if we do the numbers, this could imply a negative impact of around 1.9% to 2.2% of your consolidated revenues in 12 months. And this could imply likely a discount that could be more aggressive to that from BIVA, which I believe is around 25%. So I just wanted to check if this calculation sound reasonable and if you can also explain us these three concepts of changes.

[Alfredo R. Lara, executive]

Ernesto, this is Alfredo Guillén. Thank you for your questions. And I can tell you that the first question regarding the maker-taker or the passive-active orders, usually, in other markets, the passive orders, which add liquidity into the markets are given a premium rate, and that's what BIVA is doing. They are separating the rates in two parts, the active and the passive. And the active orders that keep the book, they draw liquidity out of the books or the order books, and those orders are standard rate. I mean, that's nothing unusual.

The second question, they are giving some extra benefit to cross-orders and the MOC, the market-on-close transactions, which are particularly driven to this market. And the third project or the third rates that are being modified are for a market maker or a liquidity provider scheme. In that sense, they give rebates or they give, to the participants, the final participants, a second discount to their trading activities in specific names. That is also a very usual way to provide liquidity into the market. So that's mainly the three main aspects of the BIVA proposal.

[Jorge Formoso, executive]

Thank you, Ernesto, this is Jorge. Just I may add the -- again, we are analyzing some alternatives. This didn't come as a surprise. We were expecting something. We were working with the Mexican authorities, as I mentioned on a liquidity provider kind of structure that we already discussed with the securities commission authorities, together with some other potential changes in the fee schedule. You're right on your numbers and on your assumptions with one small precision that you mentioned the range of potential impact is MXN 120 million, which is it may be in the higher end at MXN 110 million, as I mentioned. But everything else, I think we -- you have it right.

[Ernesto María Gabilondo Márquez, analyst]

And just another couple of questions, if may I? The second one is on your new fixed income counterpart. You mentioned that you are waiting for the approval of the regulator. Do you have any color if we should expect it by year-end or maybe in the first half of next year? We are seeing the Mexican banks will need to comply with the TLAC. So do you see the Mexican banks as the first active users of the fixed income counterpart to reduce the risk-weighted assets and to increase your capital ratios?

And for my last question, it's on Banamex. As you know, the bank has publicly announced its intention to IPO in 2025. So just wondering if you are seeing any type of registration at Bolsa for the IPO listing in the second half of 2025.

[Operator]

The next question is coming from Carlos Gomez-Lopez of HSBC.

[Jorge Formoso, executive]

We want to first provide a response to Ernesto, if we may.

[Operator]

Absolutely.

[Alfredo R. Lara, executive]

Ernesto, regarding the CCV timeline, we are expecting to get the approval very, very closely in the next weeks. We finalized all the drafting, all the discussions regarding the regulation and how we're going to implement it. Last weekend, we put in production the system. So we are ready for the review of the central -- from the Central Bank and particularly the approval to start operations from the CNBV. So on that side, I think we're almost ready. And as you know, we are working also on the CCV for it to include repos that would be relevant.

And particularly for the TLAC, the one that you mentioned, the impact is mostly on the repo from the netting, particularly and depending on the type of transactions that these guys do, that particularly the big banks are the ones that will be -- will get a lot of benefits on the capital requirements that is by regulation. So I think that we should be announcing before year-end that we will be starting operations and working on the repos that will have the most impact on what you mentioned.

[Jorge Formoso, executive]

Yes, we are aware on the Banamex plans. So far, we have not heard anything on our end of a timeline or anything formal.

[Alfredo R. Lara, executive]

We are splitting the bank by the end of November.

[Operator]

The next question is coming from Carlos Gomez-Lopez of HSBC.

[Carlos Gomez-Lopez, analyst]

Congratulations on a good third quarter. So the first question is a follow-up on the impact of this new pricing scheme. Again, to reiterate, you said MXN 90 million to MXN 120 million, that will be the gross impact on revenues. Is it in annual for 2025? Is that when that will start? And given that, what should we expect for 2025? Because again, this year started weak, it's getting better. But will you be able to have earnings growth during 2025 on your current plans, given that you're going to have this impact?

[Ramón Sarre, executive]

Carlos, we're estimating the range of between MXN 90 million and MXN 110 million, so 1-1-0, for a full year impact. Yes, we would estimate it for 2025 as we are expecting it to go through the authorities relatively quickly as we've already been talking to them. And for next year, as Jorge mentioned, we're running the numbers right now, it will definitely have an impact. But we don't have any guidance or expectation to announce for next year's revenues, but we do have this impact going forward.

[Carlos Gomez-Lopez, analyst]

But it will be fair to say that this is not something that you were counting on when you were budgeting for next year?

[Ramón Sarre, executive]

No, no, we were not planning on reducing fees on our own. That's something we wouldn't do. This is clearly a response to other market participants' actions. So it's not of our own will. So it wasn't in our original estimates.

[Operator]

The next question is coming from Edson Murguia of SummaCap.

[Edson Murguia, analyst]

I have up two of them. The first one is a follow-up regarding CCV fixed income platform that you are in the process of getting the regulatory approvals. But if I remember correctly, during the first half of 2024, you mentioned in one of the calls, I don't remember if it was the first quarter '24 or the second quarter '24 earnings call, the plan was to release the fixed income platform by the end of 2024. So it means because the regulatory approval is undergoing, it's changing the timeline specifically for customers?

And my second question is regarding on the amendments of the new regulatory law. So my question is do you have a pipeline? Have you worked with many companies or a few companies that are in the mid-size who are willing to list into Bolsa?

[Jorge Formoso, executive]

Yes, Edson, you are correct. We are still planning to go live or at least get the final authorization from the authorities in the coming weeks. As Roberto mentioned, testing technology side, we are ready to go. So if everything goes as planned, yes, the fixed income CCV will be launched this same year. It will be ready to start operations. We are estimating, I mean, a relatively easy start. But yes, we are planning to go live this year.

As of the new rules for listings, simplified approach listings, we have been very active in making presentations, webinars and discussing with customers. It is -- there's interest on both the equity segment. But I'm gladly surprised that there's some interest there to use this new facility. Definitely, the fixed income side and the debt side is more appealing. And so far, we have been discussing in a very early stage. And we have even seen leads for around 30 or even 40 companies interested in going to the second stage through our from zero to the stock market program. So it's good interest on the issuer side. We have heard also some challenges on the buy side. That's where we need to work a little bit as well to allow the large participants to be on the market as well. But there's no doubt that the issuance of these new rules were well received by the market.

[Operator]

The next question is coming from Andres Soto of Santander Mexico. We'll move on to the next question. [Operator Instructions] The next question is coming from Marlon Medina of JPMorgan.

[Marlon Robles, analyst]

Just a quick follow-up on the trading portion, we understand that the discounts BIVA is granting are mostly related to the passive orders and the cross-orders. So I was wondering if you have a breakdown of how much do this type of trades represent from the total value traded?

[Jorge Formoso, executive]

Yes, hold on a second.

[Alfredo R. Lara, executive]

Yes, Marlon, it's Alfredo Guillén. Yes, approximately cross-orders, and particularly in the [indiscernible] in the global portion of the market, possibly between 30% and 40% of total trading. Market-on-close, it's in the neighborhood of 30% also. And the rest is the regular trading activity, which is our passive orders, which are aligned into the order book.

[Marlon Robles, analyst]

Okay. And just a quick follow-up, what was your market share in cross-order?

[Jorge Formoso, executive]

[indiscernible] of market share.

[Alfredo R. Lara, executive]

It's -- well, all weighted market participation is 90%, BIVA, and 81%, us. So we have more participation in the local market. That's in the neighborhood of 90%. And in the global portion, it's around 70%. So weighted is around 82%.

[Operator]

The next question is coming from Andres Soto of Santander.

[Andres Soto, analyst]

My question is regarding these new initiatives that you are planning for next year and the new marketing division and the budget that you are envisioning. I would like to get a sense of what is the type of expense growth that you are expecting for next year and trying to understand here if that expense growth in the short term is going to represent any sort of margin pressure, considering that you are also expecting to lower your revenue in response to BIVA's pricing strategy?

[Ramón Sarre, executive]

Andres, thank you. We're not giving any guidance, not yet. And our policy is not to give guidance on margins for future revenues and expenses. But I think you're right in what you say. As we're doing our budget, it's definitely we do have a lot of investments planned and revenues look -- this new fee schedule puts more pressure on revenues, so next year looks challenging, but we're not giving any guidance.

[Jorge Formoso, executive]

Let me just add, Andres, and thanks for the question. It is clear that in the new or this environment, we need to be more -- much more active and aggressive on the street. So that's the plan of having a commercial division marketing. We do all the marketing on that, we do that, but we are basically trying to reorganize the effort with a better strategy at group level and reinforce sales teams at the exchange.

It is not going to be a big, new area, it's basically a better coordinated effort with maybe three, four people. It's not exactly a big division in terms of headcount. It's more important in terms of the strategy moving forward to be more aggressive for the industry. Again, we are aiming to increase top revenue -- top growth revenue. So that's what we are focusing on our marketing effort is aimed to reach that. So it's an investment as well on our end for -- to have a much better marketing to serve our customers.

We want to keep profitability. There will be, as Ramón said, because of the potential impact on revenues coming from the equity segment, which is, as somebody mentioned, between 2.5%, 2.3%, but the -- I can say that some of the efforts are already being done internally. What we are trying to do with this new division is to put them together. We have more coordinating goal across the different business lines.

[Andres Soto, analyst]

That is very helpful. And just in terms of timing for your new pricing structure, do you have any sense of when we are going to get news in this front?

[Jorge Formoso, executive]

We already discussed this with the Mexican authority since maybe we started discussing this more than 1 month ago. So it's not going to be a surprise, our formal work with them. We expect that to happen in the coming weeks basically. And our feeling is that because they are aware of this, the authorization shouldn't take too long. This is a short-term action that we are going to implement.

[Operator]

At this time, I would like to turn the floor back over to Mr. Alegría for closing comments.

[Jorge Formoso, executive]

Well, again, thank you very much. I think the results are showing an improvement in market activity, which is great news for us. We are excited to have this opportunity to also update you on some of our initiatives on -- for the end of this year and next year, and we remain committed to our customers and our shareholders. Please let us know if you have any other questions, we will be more than happy to respond and discuss the new initiatives with you as well. So with that, thank you very much again, have a great day.

[Operator]

Ladies and gentlemen, thank you for your participation. This concludes today's event. You may disconnect your lines or log off the webcast at this time, and enjoy the rest of your day.