Euronext publishes Q1 results

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Q1 2019 RESULTS BOLSTERED BY ACQUISITIONS AND STRONG OPERATING PERFORMANCE

Amsterdam, Brussels, Dublin, Lisbon, London and Paris – 15 May 2019 – Euronext, the leading pan-European exchange in the Eurozone with 1,300 listed issuers, today announces its results for the first quarter of 2019.

  • Q1 2019 revenue at €152.6 million (+1.4%[1]):
    • Improved Group revenue diversification with contribution from Euronext Dublin of €7.9 million (consolidated since Q2 2018) and Investor Services (Commcise) of €1.1 million (first quarter of consolidation)
    • Listing revenue at €28.0 million (+28.1%) driven by the consolidation of Euronext Dublin and the expansion of Euronext’s Corporate Services franchise to €5.1 million (+39.6%)
    • Cash trading revenue at €48.3 million (-13.3%), with solid market share reaching 66.1% in Q1 2019 and yield at 0.53bps (+1.9%) in an environment of low volumes (Cash ADV at €7.2bn, -16.9%)
    • Spot FX trading revenue at €5.8 million (+10.4%) due to improved market share, revenue capture and positive exchange rate impact
    • Advanced Data Services[2] revenue at €30.8 million (+3.8%)
    • Group non-volume related revenue accounted for 47% of total revenue in Q1 2019, and covered 114% of operating expenses excluding D&A
  • Q1 2019 EBITDA at €89.3 million (-3.0%), with EBITDA margin at 58.5%:
    • Group operating costs excluding D&A up (+8.2%) impacted by the integration of Euronext Dublin and the consolidation of Commcise, partially offset by control of operating costs and the impact of IFRS 16
    • €6.7 million run-rate cost synergies from Euronext Dublin, following the migration to the Optiq® trading platform on 4 February 2019, less than a year after closing
  • Q1 2019 adjusted EPS at €0.87[3] (-1.7%). Net income, reported, share of the Group, at €56.1 million (-6.6%):
    • €3.3 million of exceptional items partially offset by improved net financing income, results from equity investments and lower tax rate

Continued geographical expansion and revenue diversification

  • Euronext received clearance from the Norwegian Ministry of Finance to acquire up to 100% of Oslo Børs VPS’s capital on 13 May 2019, and expects to complete the transaction before the end of June 2019, once Euronext’s shareholders’ approval is obtained on 16 May 2019
  • After completion of the transaction, Oslo Børs VPS will contribute to the Group revenue diversification thanks to over 80% of non-volume related revenue
  • Expansion of Euronext FX in Asia with new office and the set-up of a matching engine in Singapore, expected to be live in Q4 2019
  • Broadening of offering to Investor Services (Commcise) and strengthening of Corporate Services

Key figures - in €m, unless stated otherwise

Q1 2019

Q1 20181

% var

Organic growth

 (like-for-like)[4]

Revenue

152.6

150.5

+1.4%

-4.7%

Operational expenses excluding D&A

-63.3

-58.5

+8.2%

-2.1%

EBITDA

89.3

92.0

-3.0%

-6.4%

EBITDA margin

58.5%

61.1%

-2.6 pts

-1.1 pts (60.0%)

Net income, share of the Group

56.1

60.0

-6.6%

N/A

EPS (adjusted)4

                           0.87  

                           0.89  

-1.7%

N/A

Stéphane Boujnah, Chief Executive Officer and Chairman of the Managing Board of Euronext, said:

In Q1 2019, Euronext Group’s revenue grew thanks to a successful acquisition and revenue diversification strategy and despite an environment of subdued volumes. Euronext’s EBITDA margin reached 58.5% in Q1 2019, in a context of consolidation of new businesses.

The first quarter of 2019 has been marked by the ongoing integration work of Euronext Dublin leading to its successful migration to the Optiq® trading platform on 4 February with, as of February 2019, €6.7 million of costs synergies delivered.

Euronext received on 13 May 2019 clearance from the Norwegian Ministry of Finance to acquire up to 100% of Oslo Børs VPS’s capital. After the approval of Euronext’s shareholders expected on 16 May 2019, completion of the transaction for Oslo Børs VPS is planned by the end of June 2019. Euronext will present its strategic plan, with 2022 financial guidance, in October 2019.

 

[1] Euronext has adopted IFRS 16 in 2019. Unless stated otherwise, percentages compare Q1 2019 to Q1 2018 data including IFRS 15, and not restated for IFRS 16. For further details, please refer to the appendix

[2] Formerly « Market data and indices »

[3] Definition in appendix

[4] “Like-for-like”, “organic” and “l-f-l” refer to Euronext Group perimeter excluding Commcise and Euronext Dublin as well as any project cost supported by Euronext for the integration of these companies

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About Euronext Euronext is the leading pan-European exchange in the Eurozone, covering Belgium, France, Ireland, The Netherlands, Portugal and the UK. The Norwegian stock exchange and its clearing & settlement subsidiary, together operating as Oslo Børs VPS, joined Euronext on 17 June 2019. With 1,300 listed issuers worth €3.5 trillion in market capitalisation as of end March 2019, Euronext is an unmatched blue chip franchise that has 24 issuers in the Morningstar® Eurozone 50 Index℠ and a strong diverse domestic and international client base. Euronext operates regulated and transparent equity and derivatives markets and is the largest centre for debt and funds listings in the world. Its total product offering includes Equities, FX, Exchange Traded Funds, Warrants & Certificates, Bonds, Derivatives, Commodities and Indices. Euronext also leverages its expertise in running markets by providing technology and managed services to third parties. In addition to its main regulated market, Euronext also operates Euronext GrowthTM and Euronext AccessTM, simplifying access to listing for SMEs.

Disclaimer This press release is for information purposes only and is not a recommendation to engage in investment activities. This press release is provided “as is” without representation or warranty of any kind. While all reasonable care has been taken to ensure the accuracy of the content, Euronext does not guarantee its accuracy or completeness. Euronext will not be held liable for any loss or damages of any nature ensuing from using, trusting or acting on information provided. No information set out or referred to in this publication may be regarded as creating any right or obligation. The creation of rights and obligations in respect of financial products that are traded on the exchanges operated by Euronext’s subsidiaries shall depend solely on the applicable rules of the market operator. All proprietary rights and interest in or connected with this publication shall vest in Euronext.

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