Euronext publishes Q3 2021 results

Back

Strong revenue growth, driven by double digit organic growth in listing, trading and clearing activities, and significant contribution of the Borsa Italiana Group.

Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo and Paris – 4 November 2021 – Euronext, the leading pan-European market infrastructure, today publishes its results for the third quarter of 2021.

  • Revenue and income at €350.6 million (+€145.8 million, +71.2%, +10.2% like-for-like[1]):
    • Borsa Italiana Group contributed €121.1 million to revenue for full quarter of consolidation.
    • Trading revenue grew to €124.2 million (+63.6%), primarily driven by the consolidation of Borsa Italiana capital markets, as well as increased cash equity volumes combined with strong yield. Fixed income trading revenue increased to €23.8 million, driven by double-digit growth in MTS cash trading activities.
    • Post-trade revenue grew to €83.1 million (+86.2%), mainly due to the consolidation of the Italian CSD, Monte Titoli, and of the clearing activities of the Italian CCP, CC&G. Custody and settlement revenue growth in the Nordic CSDs was less dynamic than previous quarters reflecting notably normalised levels of retail activity. Clearing revenue increased to €27.5 million. Net treasury income generated by CC&G was €12.9 million.
    • Advanced Data Services revenue grew to €49.8 million (+44.3%) due to robust index and core data businesses and the consolidation of the Borsa Italiana Group data activities.
    • Listing revenue grew to €50.8 million (+42.1%), resulting from strengthened leading position for the listing of equities, with 51 listings, and of ETFs, together with the continued growth of Euronext Corporate Services, and the consolidation of the Borsa Italiana Group.
    • Non-volume related revenue accounted for 55% of Q3 2021 total revenue (vs 54% in Q3 2020) and covered 131% of operating expenses, excluding D&A (vs. 128% in Q3 2020).
  • EBITDA at €203.0 million (+€85.3 million, +72.4%, +13.7% like-for-like), EBITDA margin at 57.9% (+0.4pts); EBITDA margin like-for-like at 60.4% (+1.8pts):
    • Operating expenses, excluding D&A, grew to €147.6 million (+69.5%) as a result of the consolidation of costs from acquired businesses, for €54.8 million, and costs related to the integration of the Borsa Italiana Group, as previously announced.
  • Reported net income, share of the parent company shareholders, at €115.8 million (+€45.6 million, +64.9%):
    • Exceptional items were €2.0 million and net financing expenses were €7.3 million.
    • Results from equity investments amounted to €11.8 million mainly resulting from a received dividend of €9.2 million.
    • Income tax rate was 29.0%.
  • Adjusted EPS[2] at €1.21 (+18.1%)[3].

Key figures - in €m, unless stated otherwise

Q3 2021

Q3 2020

% change

% change

(like-for-like, constant  currencies)

Revenue

350.6

204.8

+71.2%

+10.2%

Operational expenses excluding D&A

 (147.6)

 (87.1)

+69.5%

+5.3%

EBITDA

203.0

117.8

+72.4%

+13.7%

EBITDA margin

57.9%

57.5%

+0.4pt

+1.8pt

Net income, share of the parent company shareholders

115.8

70.2

+64.9%

 

EPS (non-diluted, reported, in €)

1.08

0.92

+17.1%

 

EPS (diluted, reported, in €)

1.08

0.92

+17.2%

 

EPS (non-diluted, adjusted, in €)

1.21

1.02

+18.1%

 

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

“In the third quarter of 2021, Euronext revenue grew by 71.2% to reach €350.6 million, driven by double-digit organic revenue growth, especially in listing, trading and clearing activities, and the continued good performance of Borsa Italiana, MTS, CC&G and Monte Titoli. EBITDA grew faster than revenue, to €203.0 million, thanks to a strong cost discipline to limit the impact of integration costs. Adjusted EPS increased by 18.1% to €1.21 per share as a result of this solid operating performance.

We confirmed again this quarter Euronext’s position as the leading listing venue in Europe, for equity, debt and ETFs. We welcomed 51 new equity listings, including 21 Tech companies IPOs, and 97 new ETFs. We launched mid-October, together with Borsa Italiana, the MIB ESG index, the first ESG blue-chip index for Italy following the launch of the CAC 40 ESG earlier this year.

We are pleased to welcome Fabrizio Testa as CEO of the Borsa Italiana Group, Head of Fixed Income trading for the Group, and member of the Managing Board of Euronext N.V. as of 28 November 2021.

Euronext’s new strategic plan, including 2024 financial guidance, will be presented on 9 November in Milan.”

 

[1] Like for like revenue at constant currencies exclude in Q3 2020 and Q3 2021 VP Securities (until 4 August), 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 92,447,841for 9M 2021, 9M 2020 outstanding shares adjusted for the rights issue to 76,120,331 shares

Unless specified otherwise, percentages refer to Q3 2021 data compared to Q3 2020 data

Press Release Footer

About Euronext 
Euronext is the leading pan-European market infrastructure, connecting European 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 2,000 listed issuers and around €6.6 trillion in market capitalisation as of end March 2022, 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. The Group provides a multi-asset clearing house through Euronext Clearing, and custody and settlement services through Euronext Securities central securities depositories in Denmark, Italy, Norway and Portugal. 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.  
For the latest news, follow us on Twitter (twitter.com/euronext) and LinkedIn (linkedin.com/euronext).

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.

This press release speaks only as of this date. Euronext refers to Euronext N.V. and its affiliates. Information regarding trademarks and intellectual property rights of Euronext is located at www.euronext.com/terms-use.

© 2022, Euronext N.V. - All rights reserved.