Euronext Reaps Benefits of ISE Acquisition with Higher Revenue in Q2

Euronext has reported strong revenue growth in the second quarter of 2018, with an increase of 25 percent over the first quarter. The recent growth is mainly owed to acquisition benefits of the Irish Stock Exchange which drove listing revenue at Europe’s largest exchange.

Euronext saw strong listing activity over the quarter, with increases in IPO and follow on a 20 percent advance in revenue year-over-year. Excluding the impact of the consolidation of FastMatch and ISE, Euronext revenue would have amounted to €142.9 million in Q2 2018.

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In Q2 2018, Euronext saw its total revenues come in at $182 million (€157.3 million), up 14.6 percent year-over-year from €137.3 million in Q2 2017. The group managed to hold onto its revenues thanks to a strong performance in its listing business, which climbed to €28.4 million in the April-June quarter. Moreover, the consolidation of Euronext Dublin and improved primary markets helped offset a moderate activity in secondary markets.

Euronext’s volumes were not as resilient in Q2 2018, with its average trading volumes decreasing 2.5 percent on a year-over-year basis from Q2 2018 for its cash products chain. The latest results corroborate an industry-wide trend in the institutional space of exchanges suffering from mitigated volumes in the last three months.

Strong profits despite lower volumes

On the bottom line, EBITDA for the quarter was €88.6 million, up 11.9 percent, representing a margin of 56.3 percent, but down 1.4 points compared to Q2 2017. As a result, the net profit of the group for Q2 2018 increased by 5.0 percent, to €56.6 million. This represents a reported EPS of €0.81 basic and €0.81 fully diluted in Q2 2018, compared to €0.78 basic and €0.77 fully diluted in Q2 2017.

Euronext is a pan-European exchange and runs bourses in Paris, Amsterdam, Brussels, Lisbon and London.

Commenting on the news, Stéphane Boujnah, CEO and Chairman of Euronext, said: “The second quarter saw the first contribution from Euronext Dublin, that diversifies our revenue profile, strengthens our listing franchise and positions Euronext as the world leading listing venue for debt. Our teams are now working on the integration that is progressing as planned. Thanks to its continued cost discipline, Euronext achieved a 56.3 percent EBITDA margin at Group level, while delivering on these major projects. Within the scope of our strategic plan, this translates into a 60.0 percent EBITDA margin for core business and Agility for Growth initiatives, excluding clearing and new perimeter, for the quarter, and a 61.8 percent EBITDA margin for the first half of 2018.”