Euronext publishes Q3 2019 results

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Q3 2019 NET INCOME UP 25.8% TO €63.5M DRIVEN BY ORGANIC GROWTH, COST MANAGEMENT AND OSLO BØRS VPS CONSOLIDATION 

Amsterdam, Brussels, Dublin, Lisbon, London, Oslo and Paris – 7 November 2019 – Euronext, the leading pan-European exchange in the Eurozone with 1,500 listed issuers, today announces its results for the third quarter of 2019.

Q3 2019 revenue growth (+20.4%[1]) to €181.7 million:

  • Total revenue contribution of Oslo Børs VPS at €25.5 million[2], consolidated for the full quarter
  • Listing revenue up (+25.1%) to €34.8 million driven by the strong performance of Euronext’s Corporate Services (+41.4%) at €5.7 million, and listing revenue from Oslo Børs VPS contributing €5.9 million
  • Cash trading revenue up (+10.0%) to €53.4 million, with organic growth at +4.4% and Oslo Børs VPS contributing €2.7 million. Cash ADV up +9.6% at €7.9 billion combined with a strong market share at 69.4% in Q3 2019 and a Group yield at 0.51bps, including an organic yield at 0.53bps
  • Advanced Data Services[3] revenue increase (+13.9%) to €33.5 million, thanks to good performance of indices business and Oslo Børs VPS consolidation for €3.7 million
  • Post-trade revenue up (+56.5%) to €30.8 million, mainly due to the post-trade CSD revenue from Oslo Børs VPS contributing €12 million, partially offset by a less favourable product mix in derivatives clearing
  • Group non-volume related revenue[4] accounted for 52% of Q3 2019 total revenue (vs. 46% in Q3 2018), and covered 129% of operating expenses excluding Depreciation & Amortisation (D&A) (vs. 110% in Q3 2018)

Q3 2019 EBITDA up (+23.0%) to €108.0 million, with EBITDA margin increase (+1.2pts) to 59.4%:

  • Group operating costs excluding D&A up €10.6 million as a result of the consolidation of Oslo Børs VPS costs for €13.2 million, partially offset by the positive impact of IFRS 16 (€2.7 million) and continued cost control
  • Confirmed 2019 cost guidance of a low single digit organic growth of operating expenses, excluding D&A
  • €7.6 million run-rate cost synergies from Euronext Dublin achieved as of Q3 2019 (vs. €7.5 million as of end of Q2 2019)

Q3 2019 net income, reported, share of the Group, up (+25.8%) to €63.5 million:

  • First impact on D&A of the PPA related to Oslo Børs VPS acquisition, for €3.4 million in Q3 2019 (accounted for 3.5 months in Q3 2019 to catch up two weeks of consolidation in Q2 2019. PPA expected to account for €3 million quarterly)
  • Income tax rate at 32.1% due to adjustments on deferred tax assets and liabilities
  • Q3 2019 adjusted EPS[5] increase (+15.1%) to €0.98

Release of Euronext’s strategic plan, ‘Let’s grow together 2022’, with a strong focus on growth, innovation and sustainable finance:

  • New set of 2022 guidance released on 10 October 2019
  • Launch of a new green bond offering to enhance the visibility of Euronext’s value proposition in green finance

 

Key figures - in €m, unless stated otherwise Q3 2019 Q3 2018 % var Organic % var

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Revenue 181.7 150.9 +20.4% +2.5%
Operational expenses excluding D&A -73.8 -63.2 +16.8% -6.1%
EBITDA 108.0 87.8 +23.0% +8.6%
EBITDA margin 59.4% 58.2% +1.2 pts +3.5 pts
Net income, share of the Group 63.5 50.5 +25.8% N/A
EPS (adjusted)2                             0.98                             0.85 +15.1% N/A

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

In the third quarter of 2019, Euronext grew its revenue by 20.4%, to €181.7m, its EBITDA by 23.0%, to €108m, and its reported net income by 25.8%, to €63.5m, driven by organic growth, continued cost control and the consolidation of Oslo Børs VPS.

The diversification strategy of the Group was further enhanced with non-volume related revenue amounting to more than 50% and covering 129% of total operating expenses. Euronext’s Group EBITDA margin reached 59.4%, thanks to continued cost discipline on a like-for-like basis and despite the slightly dilutive impact of Oslo Børs VPS on EBITDA margin. Adjusted EPS grew by 15.1% to €0.98 per share, thanks to the accretive impact of Oslo Børs VPS acquisition coupled with organic performance.

The recent weeks were marked by the release of Euronext’s strategic plan, ‘Let’s grow together 2022’, with a strong focus on growth, innovation and sustainable finance. The Euronext Green bond initiative was created early November, showing the strong engagement of Euronext to accelerate sustainable growth.”

 

[1] Unless stated otherwise, percentages compare Q3 2019 to Q3 2018 data including IFRS 15, and are not restated for IFRS 16. For further details, please refer to the appendix

[2] Euro/NOK rate for Q3 2019 is 9.852434

[3] Formerly ‘Market data and indices’

[4] Volume-related businesses include Cash, Derivatives, Spot FX trading, Clearing, and IPOs

[5] Definition in appendix

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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.

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