FastMatch Nets Euronext €4.3m Revenues in Q4 2017

The acquisition of the foreign exchange ECN contributed €7.2 million for the second half of last year.

Euronext has released its full year results for 2017, highlighted by an increase in revenues as well as EPS.

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The full year revenues of the eurozone exchange were released at €532.3 million, signifying a 7.2% improvement YoY, from 2016 levels of €496.4 million.

FastMatch Impact

Moreover, Euronext acquired 90% of FastMatch for $153 million back in May of 2017. The purchase signaled Euronext’s entry into the FX space. As 2017 has come to an end, Euronext is seeing the direct benefits of the acquisition.

Over roughly the second half of 2017, FastMatch contributed €7.2 million in yearly revenues. The impact gained momentum toward the end of the year, as €4.3 million in revenues were recorded in Q4 alone.

More Positive Results

The overall rise in revenues was aided by higher volumes over the course of the year. ADV for 2017 came in at €7.5 billion, up 6.7% YoY. Also contributing to the improved revenues, was a strong yearly market share of 64.4%, and 67.1% for Q4.

Euronext’s yearly report also suggests improved EPS, which climbed 22.4% throughout the year to reach €3.47. Adjusted EPS recorded a lower improvement, reaching €3.09, for a 4.8% YoY rise. The improved EPS data was boosted by a significant YoY increase in net income of 22.5%, reaching €241.3 million.

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Furthermore, another key indicator in the Euronext report is EBITDA, which increased to €297.8 million, climbing 4.9% from 2016 levels of €283.9 million. EBITDA margin came in at 55.9%, declining by 1.3 points from 2016’s release at 57.2%.

Euronext Acquisitions

The yearly report sheds light on the eurozone exchange, illustrating the positive ramifications of various agreements and acquisitions as well as development of several key markets.

Euronext started off 2017, by placing a $10 million investment in fixed income technology provider Algomi. Although the move only provided Euronext with a minority share in the company, the goal of the transaction from the side of the pan-European exchange was to strengthen its fixed income capabilities.

Another important partnership for Euronext during 2016 was its purchase of a 60% stake in iBabs, a Netherlands-based provider of dematerialized board solutions for public organizations and corporations. The cost of this particular transaction to Euronext was €30.1 million.

The agenda behind this deal was to improve efficiency of companies. iBabs has gradually expanded its client base, to include more than 1,000 companies and organizations encompassing roughly 77,000 individuals, according to June 2017 results.

As 2018 kicked off, Euronext was at it again, striking a deal with InsiderLog, to purchase an 80% stake in the company for €5.8 million.

The moves headed by Euronext have all contributed to robust revenues, EPS, net income, and an overall positive yearly report for 2017.

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