Euronext’s 2016 Revenues, Trading Volumes Dip Lower

The group's metrics fell across key areas, influenced by downtrending volatility and lingering market uncertainty.

Euronext, a pan-European exchange, released its full year operating figures for 2016, which saw a generally mixed performance across key business segments and financials, according to the latest group filing.

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In particular, Euronext’s trading volumes for its cash products incurred a decline in 2016, falling to an average daily volume of $7.4 billion (€7.0 billion) during the year, down -15.3 percent year-over-year from 2015. This loss extended to its derivatives volumes as well in 2016, falling by-7.2 percent year-over-year from 2015.

Financial Highlights

Euronext’s revenues were not dramatically different in 2016 from the year prior, reporting a total figure of $523.6 million (€496.4 million), compared with $546.9 million (€518.5 million) in 2015, reflective of a decline of -4.3 percent year-over-year.

Overall, the 2016 calendar year was marred by an up-and-down trend of volatility, which largely was lower over the course of the year, influencing both cash and derivative markets. However the two exceptions were during June with the Brexit referendum as well as the US election in November, both of which served as important market drivers.

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Furthermore, Euronext’s net profits also rose in 2016, coming in at $207.8 million (€197.0 million) – this figure correlates to a jump of 14.1 percent year-over-year from $182.2 million (€172.7 million) in 2015. As such, the group reported an earnings-per-share (EPS) in diluted terms of $2.97 (€2.82) vs. $2.59 (€2.46) in 2015, or 14.6 percent year-over-year.

Another element of Euronext’s business that experienced a decline was across its listings in 2016. A total of 28 new listings took place in 2016, which raised a collective $3.9 billion (€3.7 billion), compared to 52 listings (-46.2% year-over-year) for $13.1 billion (€12.4 billion) during 2015. One of the paramount factors of this trend was a lingering uncertainty wrought by multiple global factors throughout the year.

According to Stéphane Boujnah, Chairman and CEO of the Managing Board of Euronext NV, in a recent statement on the full-year earnings: “These results demonstrate Euronext’s continuous capability to service our shareholders and customers, and to deliver value against a tough trading environment. 2017 will be a critical year for our industry landscape.”

‘We will remain focused on executing our Agility for Growth strategy and maximizing opportunities that may arise, as we did with the agreement to potentially acquire LCH.Clearnet S.A,” Boujnah added.

Earlier today, Euronext made headlines after it unveiled a new post-trade solution, Euronext Chequers, part of a multi-tiered rollout during 2017 that will help strengthen risk analytics, inventory management, and a collateral transformation across multiple asset classes.

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