Euronext publishes Q2 2021 results

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Q2 2021 strong performance resulting from organic growth driven by record listing and post-trade activity, and from the Borsa Italiana Group acquisition

Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo and Paris – 29 July 2021 – Euronext, the  leading pan-European market infrastructure, today publishes its results for the second quarter of 2021, driven by robust organic growth thanks to a strong performance in listing and post-trade businesses and the first consolidation with Borsa Italiana Group results since its acquisition on 29 April 2021.

  • Revenue and income at €328.8 million (+€118.0 million, +56.0% and +3.5% like-for-like[1]):
    • Borsa Italiana Group contributed €89.6 million to revenue for 2 months and 2 days.
    • Post-trade revenue grew to €83.4 million (+130.9%), due to the strong performance of the two Nordic CSDs, Euronext VPS in Norway and VP Securities in Denmark, and to the consolidation of the Italian CSD, Monte Titoli, and of the clearing activities of the Italian CCP, CC&G. Net treasury income generated by CC&G was €9.6 million.
    • Trading revenue grew to €112.8 million (+26.1%), primarily driven by the consolidation of Borsa Italiana capital markets and robust yield. Fixed income trading revenue increased to €17.3 million, driven by double-digit growth in MTS cash trading activities.
    • Listing revenue grew to €48.2 million (+33.6%), resulting from record listing activity for equities with 62 new listings, and for ETFs, together with the continued growth of Euronext Corporate Services, and the consolidation of the Borsa Italiana Group.
    • Advanced Data Services revenue grew to €46.5 million (+29.7%) due to resilience of core activities and the consolidation of the Borsa Italiana Group.
    • Non-volume related revenue accounted for 56% of Q2 2021 total revenue (vs. 49% in Q2 2020) and covered 137% of operating expenses, excluding D&A (vs. 122% in Q2 2020).
  • EBITDA at €192.9 million (+€67.5 million, +53.8%), EBITDA margin at 58.7% (-0.8pts) despite integration costs; EBITDA margin like-for-like at 59.2%:
    • Operating expenses, excluding D&A, grew to €135.9 million (+59.3%) as a result of the consolidation of costs from acquired businesses, for €41.2 million, and costs related to the integration of the Borsa Italiana Group, as previously announced.
    • VP Securities run-rate cash cost synergies amounted to €7.6 million at end June 2021, representing 109% of targeted cost synergies.
  • Reported net income, share of the Group, at €86.6 million (+5.6%):
    • Exceptional items were €26.0 million and net financing expenses were €13.0 million, primarily related to the Borsa Italiana Group transaction.
    • Income tax rate was 29.6%, impacted by non-deductible exceptional items.
  • Adjusted EPS[2] at €1.43 (+26.8%)[3].

Key figures - in €m, unless stated otherwise

Q2 2021

Q2 2020

% change

% change

(like-for-like, constant  currencies)

Revenue

328.8

210.7

+56.0%

+3.5%

Operational expenses excluding D&A

-135.9

-85.3

+59.3%

+5.3%

EBITDA

192.9

125.4

+53.8%

+2.4%

EBITDA margin

58.7%

59.5%

-0.8 pts

-0.7 pts

Net income, share of the Group

86.6

82.1

+5.6%

 

EPS (non-diluted, reported, in €)

0.88

1.08

-18.2%

 

EPS (diluted, reported, in €)

0.88

1.08

-18.3%

 

EPS (non-diluted, adjusted, in €)

1.43

1.13

+26.8%

 

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

“Euronext reported a solid performance in the second quarter of 2021 with an EBITDA margin of 58.7% and 26.8% growth in adjusted EPS. This growth results from robust organic performance with record listing activity in equities and ETFs, our fast-growing post-trade business in the Nordics and from the consolidation of the Borsa Italiana Group since 29 April 2021. During the second quarter of 2021, Euronext markets welcomed 62 new equity listings, confirming our position as the leading listing venue in Europe for growth financing. Borsa Italiana revenue growth was mainly driven by the remarkable performance of MTS fixed income activity.

During this second quarter of 2021, we achieved the targeted synergies for VP Securities, only 11 months after closing. With this new milestone, we have completed, well ahead of schedule, the integration plan for our recent Nordic acquisitions.

Since the closing of the acquisition of the Borsa Italiana Group, teams across the core Euronext businesses and the Borsa Italiana Group are working together with enthusiasm to build the leading pan-European market infrastructure.

We are actively preparing the announcement of the new Euronext strategic plan, including 2024 Group guidances, which we will release in November 2021.”

 

 

[1] Like for like revenue at constant currencies exclude in Q2 2020 and Q2 2021 VP Securities, the Borsa Italiana Group, 3Sens, Ticker, OMS and Centevo as well as related integration costs

[2] Definition in appendix

[3] Weighted average number of shares at 85,094,834 for H1 2021, H1 2020 outstanding shares adjusted for the rights issue to 76,121,437 shares

Unless specified otherwise, percentages refer to Q2 2021 data compared to Q2 2020 data

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About Euronext 
Euronext is the leading pan-European market infrastructure, connecting local economies to global capital markets, to accelerate innovation and sustainable growth. It operates regulated exchanges in Belgium, France, Ireland, Italy, the Netherlands, Norway and Portugal. With close to 1,900 listed issuers and around €6.4 trillion in market capitalisation as of end June 2021, it has an unmatched blue chip franchise and a strong diverse domestic and international client base. Euronext operates regulated and transparent equity and derivatives markets, one of Europe’s leading electronic fixed income trading 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, it also operates a number of junior markets, simplifying access to listing for SMEs. Euronext provides custody and settlement services through central securities depositories in Denmark, Italy, Norway and Portugal. 
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