Euronext—the first pan-European exchange spanning Belgium, France, Netherlands, Portugal and the UK—announced today its results for 2014. Among the highlights, third-party annual revenue increased by 9% to €458.6 million ($520 million), adjusted for the exchange’s new derivative clearing agreement with LCH.Clearnet.
Third-party revenue refers to income the exchange earns indirectly through third parties.
As well, the pan-European exchange underwent an 11.4% reduction in operational expenses (excluding depreciation and amortization) compared to 2013. The exchange also reports that a full-year EBITDA margin of 45.8% has been achieved resulting in €38 million ($43 million) in efficiencies.
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The EBITDA margin for 2013 was 41.5%. However, in 2013 this number included €95 million ($108 million) in ICE transitional revenue and other income while such revenues were limited to €34 million ($39 million) in 2014, illustrating the operational efficiency achieved.
The exchange also revised its commitment to deliver total net efficiencies of €80 million ($91 million) by the end of 2016; €60 million ($68 million) in efficiencies will already be achieved by the end of H1 2015. The exchange will as well propose an €0.84 per share dividend at the annual general meeting on May 6 2015, representing a 50% payout ratio on net profit.
Dominique Cerutti, CEO and chairman of the managing board of Euronext, reiterated the company’s commitment to optimizing operations and highlighted the series of latest appointments as a key factor in driving the exchange’s “work to build Euronext into a leading financing centre.”