Good morning, ladies and gentlemen, and welcome to the audio conference call of B3's earnings results for the third quarter of 2022. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session, and instructions to participate will be given at the time. If you should require assistance during the call, please press star key followed by zero. As a reminder, this conference is being recorded and broadcasted live via webcast. The replay will be available after the event is concluded. I would now like to turn the conference over to Andre Veiga Milanez, B3 CFO, who will be joined by Fernando Campos, Investor Relations Associate Director.
Thank you. Good morning, everyone. Thanks for joining our third quarter results. I'm gonna start here with a few remarks about the quarter. From a macro scenario standpoint, we saw a quarter with continued uncertainty, especially globally, with inflationary pressures continuing to be present in the main economies around the world. Their governments taking measures from a monetary standpoint to address that. Uncertainties around the war in Ukraine and also some concerns about China's economic performance. In Brazil, even though we are still with interest rates are at very high levels, we are starting to see signs of a potential end of the rate cycle, giving the latest decision of the Central Bank to keep interest rates at 13.75%.
That scenario had different impacts in the various segments of our business. In general terms, we could say that the reductions that we saw on the segments that are more exposed to the economic cycles have been almost neutralized by the performance of the other segments. On the equities market, we closed the quarter with an ADTV of BRL 26 billion. Given the scenario that I just described with a high level of interest rates, that impacted the volumes that reduced 17% in relation to the third quarter of 2021. In relation to the second quarter of this year, was a reduction of 9%, which is mostly explained by seasonal factors. Typically, July is not a very strong month.
Given the holidays in the northern hemisphere, this year it was particularly weak, but we saw a recovery of volumes already in August and September. On the listed derivatives segment, we closed the quarter with an ADV of 4.6 million contracts. That represented a small reduction of 2% in relation to the third quarter of 2021, but an increase of 6% in relation to the second quarter of this year. Again, as I already mentioned, reinforcing and highlighting the efficiency of our diversified business model, the OTC segment was favored by this environment with higher interest rates.
That has favored the volumes, and we saw an increase of almost 31% in the outstanding balance of fixed income instruments in relation to the third quarter of 2021, and of almost 33% in the outstanding balance of Treasury Direct. With that, I would like to call Fernando to talk in a little bit more detail about the quarter results.
Thank you, Andre. Regarding revenues, it totaled BRL 2.5 billion in the quarter, stable when compared to both 3Q 2021 and 2Q 2022. I think here it's worth mentioning that the impact felt by the more cyclical business, which had a rougher quarter, as Andre mentioned, was practically offset by the performance of the other segments, reinforcing the efficiency of B3's diversified business model. Expenses grew by 19% compared to 3Q 2021, reflecting mainly the consolidation of Neoway, which has an important impact on personnel, technology, and marketing expenses. Regarding B3's expenses, we can highlight the increase in personnel due to the increase of 80% in the number of employees and the impact stemming from collective bargaining agreement which took place from August.
It is also important to mention the increase in data processing, with new initiatives being accounted for as expenses in detriment to investments, given how these initiatives are developed, with our agile methodology, squads, MVPs. In comparison to the second quarter of 2022, data expenses remained stable. With this, our recurring EBITDA amounted to BRL 1.7 billion, 80% lower than in 3Q 2021. The margins amounted to 74%, and the EBITDA was stable when compared to the second quarter. Recurring net income reached BRL 1.2 billion, 11% and 5.5% lower than 2Q 2021 and 2Q 2022 respectively. The net income was impacted by the financial result, with financial income affected by the cash position during the quarter.
The impact of inflation-linked public bonds, government bonds, and lower cash position from third parties, from collateral of third parties. Financial expenses were also hit by higher interest rates and the impact of the prepayment of the debt that occurred during the quarter. Regarding distributions for a quarter, dividends amounted to BRL 164 million, interest on own capital, BRL 320 million, and buybacks, BRL 750 million, totaling BRL 1.2 billion in distributions. I'll like to turn the call back to André to talk a bit about the strategic developments for the quarter.
Thanks, Fernando. I'm gonna mention a few events that took place during the quarter. On the strategy of continuing to strengthen our core business and launching new products and services, we've announced the launch in September of federal government bonds, repos and lending services for institutional investors. This was a market demand. Our role here in this service as a CCP reduces the risk for participants, and we believe that could end up turning this market more active, more dynamic. On the regulatory front, perhaps it's worth mentioning that during this quarter, the CVM published the methodology for, and the definition of the minimum size of large blocks.
This complements, supplements actually the Resolution 135 that was released in June, that, as you all know, allowed large blocks to be traded outside of an exchange environment. The definition of what a large block was, it was something that was missing from that regulation, and that was defined during this quarter. I think it's worth highlighting the decision that came together with the definition of the minimum size of the large blocks, of having a review of that definition, at least three times per year. This will guarantee and ensure more flexibility for adjustments that could be necessary. Also, I think it demonstrates and shows the regulator's attention and concern with the quality of the market.
As we previously mentioned, we have already announced that we will launch our proprietary solutions for the trading of large blocks, and this is expected to be implemented during the first half of next year. There are still a few things that need to be defined before we can get our approval and start with the rollout of our solutions. Finally, we also announced two acquisitions during this period. The first one was the acquisition of a company called Datastock, which is a technology company specialized in inventories, integration management for new and used vehicle stores. This will expand our offerings to other sectors or other activities within the value chain of vehicle financing, et cetera.
could be adding also to our data and analytics business. We will pay an amount of up to BRL 80 million, of which up to BRL 30 million is composed of earn-outs that will be paid over the course of the next five years, subject to the fulfillment of certain performance targets. Finally, we also announced the acquisition of Neurotech yesterday. Neurotech is a technology company specialized in artificial intelligence, machine learning, and big data solution. This acquisition is very complementary to the acquisition of Neoway that was concluded at the end of last year. It will boost our strategy in data analytics, as I mentioned, complementing the portfolio of data solutions in credit risk and insurance.
We will disburse around BRL 620 million reais on the closing of the transaction. There is also an estimated payment in earn-outs representing BRL 523 million reais at present value. Again, subject to the meeting of certain performance targets over the next four years. Both acquisitions, it is worth mentioning, are still subject to the approval of certain conditions. In the case of Neurotech, which is a bigger acquisition, there will be an AGM in December to approve the transaction. Besides the approval of shareholders, we also need approval from the antitrust authority in Brazil and the CVM. I think that was it in terms of the main highlights. I would like to open now the floor for questions and answers. Thank you very much.
Thank you. We will now begin the question and answer session. If you have a question, please press star one. Our first question comes from Antonio Coletti, Bank of America.
Hey, good morning, guys. Congrats on the results and thank you for your time. Two questions on my side. The first one, we have seen a very active regulator in terms of incentivizing competition. I would ask you if you have any intention of sharing operating leverage or any other way that you would protect your client base in case we see competition coming over the next quarters. My second question is on financial results. With what you have been seeing in October and November, can you please share what you expect in terms of financial results for the quarter and even the next months? Thank you.
Sorry, can you just repeat the first question? 'Cause we didn't get that. I think you're talking about competition and prices. Is it? Was that the question? Sorry, Antonio.
We have seen a very active regulator in terms of incentivizing competition, and I was just wondering if you have any intention of sharing operating leverage with clients or any other ideas to retain your client base in case we see competition coming?
Thank you, Antonio. Well, the first question, I think, you know, Pricing is always a sensitive matter, and we pay attention to that very closely. As you know, we did a major revision of our pricing schedule over the course of the last two years. Sharing operational leverage is part of that revision, is part of the spirit that we have in terms of looking at our pricing schedules. I think, you know, most of the, perhaps, complaints that we had in terms of our pricing schedule have been addressed with that major revision.
You know, at the moment, we do not see the need of making any, let's say, significant revisions to our pricing schedule to address any concerns that are arising. Of course, we constantly keep monitoring that and are constantly making adjustments to our pricing schedule. This is an ongoing exercise in the company, sometimes adjusting prices, reducing prices, increasing the level of discount, sometimes reviewing prices on the other direction, where there is perhaps a discrepancy between different products and these sort of things. This is an ongoing exercise here. At this moment, we do not see the need for any significant revisions. Our current pricing schedule already adjusts for that.
The higher the volume, the higher the level discount that our participants will receive. On your second point, in relation to the financial result, I think we had, let's say, a quarter that was impacted by some non-recurring items. We did have the impacts of the early retirement of the debenture that was issued during the pandemic. Although from an economic standpoint, it made perfect sense to do that movement, you have some impacts that are recognized upfront that impacted the financial expenses for this quarter. We also had, this is something that we do not control, so a lower cash position from third-party cash that also impacts the level of revenue that we collect on our cash balances.
Finally, a small portion of our financial investments are in. Well, all of it is in federal securities, government bonds, but a small portion of that is invested in inflation-linked bonds, and as you probably saw that happening in other institutions, in other companies, given the deflation that we had during the period, that has impacted our financial revenue. I do not expect a similar trend going forward, given the very specific reasons for that result during this quarter.
Okay, thank you.
Thank you. Our next question comes from Ian White, Autonomous Research.
Hi, thanks for taking my questions. A couple from my side, please. First up, I was interested, maybe if you could talk in a bit more detail about two areas, and specifically, data and analytics, and the real estate revenues in infrastructure for financing. I guess these are two areas where, you know, you've looked to bolster the offering through M&A, there seems to be some medium-term growth potential. Progression in this quarter, you know, the last couple of quarters, hasn't been particularly strong in terms of revenue growth. Why are we not seeing more progress coming, you know, it's a high inflation environment. Is there not more that you can do on pricing?
What are we seeing in terms of buy and product growth, that might lead us to expect better results there over the next couple of quarters? That was the first question. Just secondly, maybe I could just ask, maybe for a little bit more help on the net finance result. Would you be prepared just to call out the size of the one-off expense that came in relation to the early retirement of the debt? Tell us what portion of the securities is inflation-linked, please, on the asset side, just so we can sort of look at this in a bit more detail going forward. Thank you.
The first question that you made, if I'm not mistaken, and if I got something wrong here, you can get back to us, but you were asking about the data and analytics revenues and also the real estate revenues that are on the infrastructure for financing. I think on the real estate revenues, given the current scenario, the infrastructure for finance tends to be a more cyclical segment in our business, right? There you have primarily the revenues that are linked to the activities that we perform surrounding vehicle financing and also some of the activities developed either by ourselves or by one of our subsidiaries that have to do with the real estate financing as well.
Given the current scenario, those business have been affected, as we are not seeing significant growth in those activities. That tends to be more cyclical than definitely than other areas of our business. In terms of data and analytics, excluding Neoway, we've seen an increase of 10%. As we did mention, I think both acquisitions, Neoway and Neurotech, we do believe that those will help us to keep increasing and boosting our strategy in data and hopefully to present future growth on that area and accelerate our growth in terms of data revenues and data solution revenues going forward.
In terms of the questions surrounding the financial result, the impacts surrounding the early retirement of the debenture that was done during the quarter, it mainly comprised of a premium that had to be paid in order to make the early retirement. There was a premium established in the deed of the debenture establishing a premium to be paid to the bondholders. There is also expenses that were you know incurred during the issuance of the debenture that were being recognized together with the interest rate using the effective interest rate method. Once you decide to early retire some of those expenses have to be recognized directly in your profit and loss account.
We had around BRL 20 million involved in the early retirement of that debt. We have less than BRL 1 billion invested in inflation-linked bonds.
Okay. Thanks so much for those clarifications. If maybe I could just come back slightly on the data and analytics. I guess I'm just looking at the progression of, you know, the B3 revenues ex Neoway, the last couple of quarters, you know, sort of BRL 79 million, BRL 83 million, BRL 81 million, in an environment where inflation's been, you know, sort of high single digit for a lot of that. What
Should I take from this that aside from the potential support, the sort of significant opportunity we're gonna see from Neoway and Neurotech, there is kind of relatively little in the existing sort of B3 data and analytics revenue in terms of new product or client growth, and really we're not gonna see sort of significant rates of growth until those businesses are embedded? Is that a fair summary of where we are on data analytics? Or am I being unkind?
Look, today, if you take most of our data revenue is raw market data. There are. Of course there is data surrounding more structured products, data, let's say analytics with that. Our strategy with Neurotech and Neoway is also to use them to accelerate the development of, let's say, capital market products, and data solutions involving capital markets. One of the first things that we did right after the acquisition of Neoway was the establishment of a new vertical of products within Neoway to deal with capital market data solutions. This is an effort that we believe will be accelerated with both of those acquisitions.
Capital market data solutions is definitely an area that will be of focus for those companies and that we expect that their products, their solutions, their platforms will help us to be able to unlock the value of those solutions and to be able to better monetize that data.
Thanks very much for the details. Appreciate it.
Thank you. Once again, to ask a question, please press star one. Please hold. Thank you. With no further questions, we conclude the Q&A session for today. I would like to invite Andre Veiga Milanez to proceed with his closing statements.
Thank you all very much for joining our call. It's been a busy quarter. There's still a few. There's still a lot of time before the year ends. The team here was asking me to wish you all a good end of the year. I think it's still too early for that. I hope to be able to do that on our investor day, B3 Day, which will take place in December, the December 12th. Here is a reminder and invitation for all of you to join our B3 Day, and hopefully there I'll be able to wish you a happy year-end. Thank you very much for your continued support and have a nice day.
Thank you. That does conclude B3's conference call for today. Thank you very much for your participation. Have a good afternoon.