Euronext publishes Q2 results

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Q2 2019 RESULTS DRIVEN BY DIVERSIFICATION INITIATIVES AND COST MANAGEMENT

Amsterdam, Brussels, Dublin, Lisbon, London, Oslo and Paris – 31 July 2019 – Euronext, the leading pan-European exchange in the Eurozone with 1,500 listed issuers, today announces its results for the second quarter of 2019.

  • Q2 2019 revenue growth (+1.8%[1]) to €159.0 million:

    • Total revenue contribution of Oslo Børs VPS at €4.5 million, consolidated from 14 June 2019
    • Listing revenue up (+8.6%) to €29.7 million driven by the strong performance of Euronext’s Corporate Services reporting
      strong growth (+51.7%) to €5.7 million, and listing revenue from Oslo Børs VPS contributing €1.0 million
    • Cash trading revenue down (-5.9%) to €50.7 million, with strong market share at 68.2%2 in Q2 2019 and yield at 0.54bps[2] (up +7.3%) in a low volumes environment (Cash ADV2 down -11.6% at €7.4bn)
    • Advanced Data Services[3] revenue increased (+5.2%) to €30.9 million, thanks to good performance of indices business
    • Custody, Settlement and other post-trade revenue up (+38.8%) to €7.7 million mainly due to the post-trade CSD revenue from Oslo Børs VPS contributing €2.1 million
    • Group non-volume related revenue[4] accounted for 48% of Q2 2019 total revenue (vs. 44% in Q2 2018), and covered 124% of operating expenses excluding D&A (vs. 100% in Q2 2018)
  • Q2 2019 EBITDA up (+12.0%) to €98.1 million, with EBITDA margin increase (+5.7pts) to 61.7%:
    • Group operating costs excluding D&A down €7.8 million as a result of the impact of IFRS 16 (€2.7 million), favourable base effect in Q2 2018 (€1.5 million), positive one-offs in Q2 2019 (c. €1 million) and continued cost discipline (€5.0 million) despite the consolidation of Oslo Børs VPS and Commcise costs for €2.4 million
    • €7.5 million run-rate cost synergies from Euronext Dublin achieved as of Q2 2019 (vs. €6.7 million as of end of Q1 2019)
  • Q2 2019 net income, reported, share of the Group, down (-4.4%) to €53.4 million:
    • €10.0 million of exceptional items mainly related to the acquisition of Oslo Børs VPS, lower results from equity investments due to postponed dividends from Euroclear to be received in Q4 2019 and increased financing expenses
    • Q2 2019 adjusted EPS[5] increase (+4.5%) to €0.93.

Continued capital deployment for revenue diversification

    • Completion of the acquisition of Oslo Børs VPS (exchange and CSD)
    • Launch of a 10-year, 1.125% annual coupon, A- rated, €500 million bond in June 2019, to finance the acquisition of Oslo Børs VPS and other corporate purposes
    • Continued capital deployment with innovation-driven investments in Tokeny, a compliant tokenization platform and OPCVM 360, a leading fund data provider, to pursue the development of innovative solutions and services for clients
Key figures - in €m, unless stated otherwise Q2 2019 Q2 2018 % var Organic

(like for like) [6]

Revenue 159.0 156.3 +1.8% -1.7%
Operational expenses excluding D&A -60.9 -68.7 -11.3% -14.8%
EBITDA 98.1 87.6 +12.0% +8.5%
EBITDA margin 61.7% 56.0% +5.7 pts +5.8 pts
Net income (reported), share of the Group 53.4 55.8 -4.4% N/A
EPS (adjusted)5 0.93   0.89   +4.5% N/A

 

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

In the second quarter of 2019, the Euronext Group’s revenue grew by 1.8% as a result of the successful acquisition of Oslo Børs VPS and our revenue diversification strategy, despite an environment of subdued volumes. Euronext’s EBITDA margin reached 61.7%, thanks to continued cost discipline and optimization of Euronext Dublin cost structure.

The second quarter was marked by the closing of the acquisition of Oslo Børs VPS, as initially announced in January 2019. Euronext has started the integration works with Oslo Børs VPS teams and will communicate its synergy targets and ambitions during its Investor Day on 11 October 2019.”

 

[1] Unless stated otherwise, percentages compare Q2 2019 to Q2 2018 data including IFRS 15, and not restated for IFRS 16. For further details, please refer to the appendix

[2] Excluding Oslo Børs VPS

[3] Formerly « Market data and indices »

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

[5] Definition in appendix

[6] “Like-for-like”, “organic” and “l-f-l” refer to Euronext Group perimeter excluding Oslo BØrs VPS and Commcise and 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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