Euronext (EPA: ENX), a pan-European market infrastructure provider, published its fourth quarter 2022 results, reporting a 6.2 percent yearly dive in overall revenue and income to €347 million.

Listing revenue improved 3.1 percent to €53.5 million, whereas the trading revenue, which brought €116.3 million, came in 12.1 percent lower. Cash trading, which dominates the trading revenue division, witnessed a 17.9 percent decline to €65.1 million, followed by a 5.4 percent dip in derivatives trading to €13.4 million.

Strong Euronext FX Revenue

On the contrary, spot FX trading on the platform strengthened by 9.5 percent to €6.7 million. It improved by a 4 percent rise in average trading volume to $20.16 billion. However, the FX revenue decreased by 2.2 percent on a like-for-like basis. Additionally, the FX revenue declined from €7.3 million reported in the previous two quarters.

For the full year, revenue from FX trading came in 21 percent higher at €28.4 million, which is a record on the platform. The company highlighted that the trading volume and revenue on Euronext FX benefited from geographic expansion and product diversification despite the vanishing volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term since the beginning of the year.

However, FX activities are going dull in 2023, as the ADV on Euronext FX for January dipped 12.1 percent to $19.6 billion.

Quarterly Profits Declined

The adjusted EBITDA of Euronext for the quarter went down 12 percent to €187.9 million. Moreover, the EBITDA margin dropped to 54.1 percent from 57.7 percent. On top of that, the company turned an operating profit of €134.2 million, which is 10.9 percent below the previous figure. The pre-tax income came in at €140.8 million, with the net figure down 11.9 percent to €99.3 million.

Euronext ended the year with diluted adjusted earnings per share (EPS) of €1.10, which is 18 percent down from the previous year.

However, the year's overall performance turned out to be very impressive. With a 9.3 percent jump in yearly revenue, Euronext ended the year with a net income of €437.8 million, which is 5.9 percent higher.

“In 2022, Euronext reached record revenue and income above €1.4 billion, notably resulting from the strong performance of our non-volume related activities, together with efficient management of revenue capture and of cash trading market share,” said Stéphane Boujnah, the Chair and CEO of Euronext.