Euronext Revenue Grows 1.8%
Euronext, the leading pan-European exchange in the Eurozone with 1,500 listed issuers, announces its results for the second quarter of 2019.
Euronext published its results for the second quarter of 2019. Euronext Group’s revenue grew by 1.8% as a result of the successful acquisition of Oslo Børs VPS and a revenue diversification strategy, despite an environment of subdued volumes. https://t.co/1zkJJ3iloD pic.twitter.com/vF8wRmUYMw
— Euronext (@euronext) July 31, 2019
Q2 2019 revenue growth (+1.8%) to €159.0 million:
Total revenue contribution of Oslo Børs VPS at €4.5 million, consolidated from 14 June 2019
Listing revenue up (+8.6%) to €29.7 million driven by the strong performance of Euronext’s Corporate Services reporting
strong growth (+51.7%) to €5.7 million, and listing revenue from Oslo Børs VPS contributing €1.0 million
Cash trading revenue down (-5.9%) to €50.7 million, with strong market share at 68.2%2 in Q2 2019 and yield at 0.54bps (up +7.3%) in a low volumes environment (Cash ADV2 down -11.6% at €7.4bn)
Advanced Data Services revenue increased (+5.2%) to €30.9 million, thanks to good performance of indices business
Custody, Settlement and other post-trade revenue up (+38.8%) to €7.7 million mainly due to the post-trade CSD revenue from Oslo Børs VPS contributing €2.1 million
Group non-volume related revenue accounted for 48% of Q2 2019 total revenue (vs. 44% in Q2 2018), and covered 124% of operating expenses excluding D&A (vs. 100% in Q2 2018)
Q2 2019 EBITDA up (+12.0%) to €98.1 million, with EBITDA margin increase (+5.7pts) to 61.7%:
Group operating costs excluding D&A down €7.8 million as a result of the impact of IFRS 16 (€2.7 million), favourable base effect in Q2 2018 (€1.5 million), positive one-offs in Q2 2019 (c. €1 million) and continued cost discipline (€5.0 million) despite the consolidation of Oslo Børs VPS and Commcise costs for €2.4 million
€7.5 million run-rate cost synergies from Euronext Dublin achieved as of Q2 2019 (vs. €6.7 million as of end of Q1 2019)
Q2 2019 net income, reported, share of the Group, down (-4.4%) to €53.4 million:
€10.0 million of exceptional items mainly related to the acquisition of Oslo Børs VPS, lower results from equity investments due to postponed dividends from Euroclear to be received in Q4 2019 and increased financing expenses
Q2 2019 adjusted EPS increase (+4.5%) to €0.93.
Continued capital deployment for revenue diversification:
Completion of the acquisition of Oslo Børs VPS (exchange and CSD)
Launch of a 10-year, 1.125% annual coupon, A- rated, €500 million bond in June 2019, to finance the acquisition of Oslo Børs VPS and other corporate purposes
Continued capital deployment with innovation-driven investments in Tokeny, a compliant tokenization platform and OPCVM 360, a leading fund data provider, to pursue the development of innovative solutions and services for clients.
Stéphane Boujnah, Chief Executive Officer and Chairman of the Managing Board of Euronext, said:
“In the second quarter of 2019, the Euronext Group’s revenue grew by 1.8% as a result of the successful acquisition of Oslo Børs VPS and our revenue diversification strategy, despite an environment of subdued volumes. Euronext’s EBITDA margin reached 61.7%, thanks to continued cost discipline and optimization of Euronext Dublin cost structure.
The second quarter was marked by the closing of the acquisition of Oslo Børs VPS, as initially announced in January 2019. Euronext has started the integration works with Oslo Børs VPS teams and will communicate its synergy targets and ambitions during its Investor Day on 11 October 2019.”
The deal further strengthens Euronext in the Nordics after acquisition of Oslo Børs VPS.
Market participants receive trading data and trends from European venues free of charge.
Fee compression is responsible for 80% of the decline.
The phase-in by EMMI occurred gradually to minimise operational and technological risks for panel banks.
Financial and non-financial corporates represent less than half of current outstanding green bonds.