Strong revenue growth, driven by double digit organic growth in listing, trading and clearing activities, and significant contribution of the Borsa Italiana Group.

Read the full press release here: https://t.co/yNa9Qj1Z6G pic.twitter.com/9b3sLz3C9x

— Euronext (@euronext) November 4, 2021

Euronext, the leading pan-European market infrastructure, today publishes its results for the third quarter of 2021.

• Revenue and income at €350.6 million (+€145.8 million, +71.2%, +10.2% like-for-like^[1]):
  • Borsa Italiana Group contributed €121.1 million to revenue for full quarter of consolidation.
  • Trading revenue grew to €124.2 million (+63.6%), primarily driven by the consolidation of Borsa Italiana capital markets, as well as increased cash equity volumes combined with strong yield. Fixed income trading revenue increased to €23.8 million, driven by double-digit growth in MTS cash trading activities.
  • Post-trade revenue grew to €83.1 million (+86.2%), mainly due to the consolidation of the Italian CSD, Monte Titoli, and of the clearing activities of the Italian CCP, CC&G. Custody and settlement revenue growth in the Nordic CSDs was less dynamic than previous quarters reflecting notably normalised levels of retail activity. Clearing revenue increased to €27.5 million. Net treasury income generated by CC&G was €12.9 million.
  • Advanced Data Services revenue grew to €49.8 million (+44.3%) due to robust index and core data businesses and the consolidation of the Borsa Italiana Group data activities.
  • Listing revenue grew to €50.8 million (+42.1%), resulting from strengthened leading position for the listing of equities, with 51 listings, and of ETFs, together with the continued growth of Euronext Corporate Services, and the consolidation of the Borsa Italiana Group.
  • Non-volume related revenue accounted for 55% of Q3 2021 total revenue (vs 54% in Q3 2020) and covered 131% of operating expenses, excluding D&A (vs. 128% in Q3 2020).
• EBITDA at €203.0 million (+€85.3 million, +72.4%, +13.7% like-for-like), EBITDA margin at 57.9% (+0.4pts); EBITDA margin like-for-like at 60.4% (+1.8pts):
  • Operating expenses, excluding D&A, grew to €147.6 million (+69.5%) as a result of the consolidation of costs from acquired businesses, for €54.8 million, and costs related to the integration of the Borsa Italiana Group, as previously announced.
• Reported net income, share of the parent company shareholders, at €115.8 million (+€45.6 million, +64.9%):
  • Exceptional items were €2.0 million and net financing expenses were €7.3 million.
  • Results from equity investments amounted to €11.8 million mainly resulting from a received dividend of €9.2 million.
  • Income tax rate was 29.0%.
• Adjusted EPS[2] at €1.21 (+18.1%)[3].

Stéphane Boujnah, Chief Executive Officer and Chairman of the Managing Board of Euronext, said:

“In the third quarter of 2021, Euronext revenue grew by 71.2% to reach €350.6 million, driven by double-digit organic revenue growth, especially in listing, trading and clearing activities, and the continued good performance of Borsa Italiana, MTS, CC&G and Monte Titoli. EBITDA grew faster than revenue, to €203.0 million, thanks to a strong cost discipline to limit the impact of integration costs. Adjusted EPS increased by 18.1% to €1.21 per share as a result of this solid operating performance.

We confirmed again this quarter Euronext’s position as the leading listing venue in Europe, for equity, debt and ETFs. We welcomed 51 new equity listings, including 21 Tech companies IPOs, and 97 new ETFs. We launched mid-October, together with Borsa Italiana, the MIB ESG index, the first ESG blue-chip index for Italy following the launch of the CAC 40 ESG earlier this year.

We are pleased to welcome Fabrizio Testa as CEO of the Borsa Italiana Group, Head of Fixed Income trading for the Group, and member of the Managing Board of Euronext N.V. as of 28 November 2021.

Euronext’s new strategic plan, including 2024 financial guidance, will be presented on 9 November in Milan.”

[1] Like for like revenue at constant currencies exclude in Q3 2020 and Q3 2021 VP Securities (until 4 August), the Borsa Italiana Group, 3Sens, Ticker, OMS and Centevo as well as related integration costs

[2] Definition in appendix

[3] Weighted average number of shares at 92,447,841for 9M 2021, 9M 2020 outstanding shares adjusted for the rights issue to 76,120,331 shares

Unless specified otherwise, percentages refer to Q3 2021 data compared to Q3 2020 data.

Source: Euronext