Euronext publishes Q4 and Full Year 2019 Results
| CONTACT - Media: |
CONTACT - Investor Relations: | |||||
| Amsterdam | +31.20.721.4488 | Brussels | +32.2.620.15.50 | +33.1.70.48.24.27 | ||
| Dublin Lisbon |
+353.1.617.4266 +351.210.600.614 |
Paris | +33.1.70.48.24.45 | |||
EURONEXT PUBLISHES Q4 AND FULL YEAR 2019 RESULTS
STRONG PERFORMANCE IN 2019 DRIVEN BY SUCCESSFUL DIVERSIFICATION AND SOLID CORE BUSINESSES DYNAMICS. 2020 COST TARGET ANNOUNCED
Amsterdam, Brussels, Dublin, Lisbon, London, Oslo and Paris – 12 February 2020 – Euronext, the leading pan-European market infrastructure, today announces its results for the fourth quarter and full year 2019.
Strong performance of Euronext through 2019
- Double digit growth in annual revenue to €679.1 million (+10.4%):
- Contribution from Oslo Børs VPS of €57.1 million for 6.5 months of consolidation, reflecting successful diversification
- Strong growth in listing revenue to €129.0 million (+21.1%), driven by the consolidation of Oslo Børs VPS and the solid performance of Corporate Services at €24.4 million (+43.4% like-for-like). Like-for-like, listing revenue increased +3.9%
- Cash trading revenue decreased to €205.6 million (-2.6%), like-for-like revenue decreased -5.8% in a low-volumes environment (-9.4%), market share significantly improved to 68.7% over 2019 (+2.6pts) and yield increased to 0.53bps (+4.0%)
- Advanced data services revenue increased to €128.8 million (+8.8%), as a result of the consolidation of Oslo Børs VPS and the good performance of the indices business. Like-for-like, revenue increased +1.1%
- Post-trade revenue strongly increased to €104.8 million (+35.5%), driven by the consolidation of the Norwegian VPS CSD revenue, and higher treasury income offsetting lower volumes while derivatives clearing revenue was stable. Like-for-like, revenue increased +0.1%
- Group non-volume related revenue1 accounted for 50% of 2019 total revenue (vs. 44% in 2018), and covered 122% of operating expenses excluding depreciation & amortisation (vs. 104% in 2018)
- Double digit growth in EBITDA to €399.4 million (+12.8%), with EBITDA margin at 58.8% (+1.2pts):
- Group operating costs excluding D&A were up +€18.9 million as a result of the consolidation of costs from acquired businesses, partially offset by continued cost discipline and the positive impact of IFRS 16
- €7.8 million run-rate cost synergies achieved from Euronext Dublin as of 31 December 2019 (compared to €2.7 million as of 31 December 2018)
- Increase in reported net income, share of the Group, to €222.0 million (+2.8%):
- Exceptional items at €21.9 million, reflecting primarily acquisitions costs, restructuring costs as well as termination of contracts of Oslo Børs VPS
- Net financing expenses at €17.4 million, resulting from revaluation of buy-options on minority stakes in acquisitions made in Corporate Services in 2017 and deferred payments
- Income tax rate at 30.8% reflecting various non-deductible expenses
- Double digit growth in adjusted EPS2 to €3.90 (+10.9%)
Dividend proposal for 2019
In accordance with Euronext dividend policy, a pay-out ratio of 50% of reported net income representing a dividend for 2019 of €111 million (€1.59 per share) will be proposed to the AGM3 on 14 May 2020.
| Key figures - in €m, unless stated otherwise | FY 2019 | FY 2018 | % var | Organic % var (like-for-like) |
| Revenue | 679.1 | 615.0 | +10.4% | -1.0% |
| Operational expenses excluding D&A | -279.7 | -260.8 | +7.2% | -7.4% |
| EBITDA | 399.4 | 354.3 | +12.8% | 3.8% |
| EBITDA margin | 58.8% | 57.6% | +1.2 pt | +2.8 pts |
| Net income, share of the Group | 222.0 | 216.0 | +2.8% | |
| EPS (adjusted)2 | 3.90 | 3.51 | +10.9% |
Cost guidance for 2020
As announced at the 2019 Investor Day, Euronext expects to incur non-recurring costs related to the integration of Oslo Børs VPS and internal digitalisation projects, which will start generating savings in 2021. As a result, Euronext expects its operating costs excluding D&A to temporarily increase by a mid-single digit4 in 2020, compared to its second half 2019 annualised cost base.5
Stéphane Boujnah, Chief Executive Officer and Chairman of the Managing Board of Euronext, said:
“Euronext delivered a strong performance in 2019 with double digit growth in revenue, EBITDA and adjusted EPS. This performance results from successful diversification and solid core businesses dynamics, with a cash trading market share at 68.7% for the Group through the year. Our core business further proved its resilience in 2019, as, on a like-for-like basis, revenue only decreased -1.0%, against a -9.4% drop in cash trading volumes.
This year, Euronext released its new strategic plan, ‘Let’s grow together 2022’, with a strong focus on growth, innovation and sustainable finance, aiming to build the leading pan-European market infrastructure. The Group already reached a first milestone with the acquisition of Nord Pool, strengthening its presence in the Nordics and diversifying into power markets. Euronext remains committed to deploying its capital, in a disciplined way, to diversify its revenue profile and to expand its federal model further.
In 2019, Euronext also completed the deployment of its Optiq® trading platform to its derivative markets, paving the way for the migration of Oslo Børs markets to Optiq® in 2020. The integration of Oslo Børs VPS will be a key element for the delivery of the announced synergies. As a result of the integration and internal projects, Euronext expects a non-recurring mid-single digit growth1 of Group operating expenses (excluding D&A) in 2020, compared to its second half 2019 annualised cost base.”
Agenda
A conference call and a webcast will be held tomorrow 13 February 2020, at 9.00am CET (Paris time) / 8.00am UK time:
Website : www.euronext.com/investors
To connect to the conference call, please dial:
- UK Number: +44 203 003 2666
- FR Number: +33 1 7037 7166
- NL Number: +31 20 794 8426
- US Number: +1 212 999 6659
- BE Number: +32 2 792 0434
- PT Number: +351 3 0880 2081
- IR Number: +353 1 436 0959
- NO Number: +47 2 156 3318
Password: Euronext
Live Webcast:
A live audio webcast and replay after the call will be available via this link and on Euronext’s Investor Relations website.
Euronext full-year and Q4 2019 financial performance
| In €m, unless stated otherwise | Q4 2019 | Q4 2018 | % change | Organic (like-for-like) | FY 2019 | FY 2018 | % change | Organic (like-for-like) |
| Revenue | 185.7 | 157.3 | +18.1% | +0.0% | 679.1 | 615.0 | +10.4% | -1.0% |
| Operational expenses excluding D&A | -81.6 | -70.4 | +16.0% | -6.0% | -279.7 | -260.8 | +7.2% | -7.4% |
| Salaries and employee benefits | -45.9 | -33.4 | +37.4% | +6.7% | -153.1 | -118.5 | +29.2% | +8.6% |
| Other expenses | -35.8 | -37.0 | -3.3% | -17.4% | -126.5 | -142.3 | -11.1% | -20.8% |
| EBITDA | 104.1 | 86.9 | +19.8% | +4.9% | 399.4 | 354.3 | +12.8% | +3.8% |
| EBITDA margin | 56.0% | 55.3% | +0.8 pts | +2.7 pts | 58.8% | 57.6% | 1.2 pt | +2.8 pts |
| Depreciation & Amortisation | -12.8 | -6.1 | +108.8% | +30.0% | -43.7 | -23.4 | +86.6% | +39.6% |
| Operating Profit before Exceptional items | 91.3 | 80.8 | +13.0% | +3.0% | 355.7 | 330.9 | +7.5% | +1.2% |
| Exceptional items | -8.2 | -5.5 | +50.6% | -21.9 | -21.5 | +1.9% | ||
| Operating Profit | 83.1 | 75.3 | +10.3% | 333.9 | 309.4 | +7.9% | ||
| Net financing income / (expense) | -14.2 | -4.0 | N/A | -17.4 | -5.3 | N/A | ||
| Results from equity investments | 3.5 | -0.2 | N/A | 9.1 | 7.6 | +20.0% | ||
| Profit before income tax | 72.4 | 71.1 | +1.7% | 325.6 | 311.7 | +4.4% | ||
| Income tax expense | -22.4 | -21.1 | +6.0% | -100.3 | -94.1 | +6.6% | ||
| Share of non-controlling interests | -0.9 | -0.4 | +146.6% | -3.3 | -1.7 | 99.6% | ||
| Profit for the period | 49.0 | 49.6 | -1.2% | 222.0 | 216.0 | +2.8% | ||
| Reported EPS (€ per share) | 0.70 | 0.71 | -1.4% | 3.19 | 3.10 | +2.7% | ||
| Adjusted EPS (€ per share) | 1.11 | 0.88 | +26.6% | 3.90 | 3.51 | +10.9% |
The figures in this document have not been audited or reviewed by our external auditor.
Full year 2019
In 2019, Euronext consolidated revenue increased to €679.1 million, up +10.4%, mainly driven by the consolidation of Oslo Børs VPS, the contribution of Investor Services and the strong performance from Corporate Services, which offset lower trading revenue in a subdued environment for cash trading. On a like-for-like basis (excluding the consolidation of Oslo Børs VPS, Commcise and OPCVM360 in 2019), Euronext consolidated revenue decreased by -1.0% in 2019, to €609.0 million.
Non-volume related revenue6 accounted for 50% of total Group revenue in 2019, an increase from 44% of total Group revenue in 2018. The operating cost coverage ratio7 was at 122% in 2019, compared to 104% in 2018.
Fourth quarter of 2019
In the fourth quarter of 2019, Euronext consolidated revenue increased to €185.7 million, up +18.1%, mainly driven by the consolidation of Oslo Børs VPS, the contribution of Investor Services, the strong performance from Corporate Services and resilient activity from core businesses. On a like-for-like basis (excluding the consolidation of Oslo Børs VPS, Commcise and OPCVM360 in Q4 2019), Euronext consolidated revenue was stable in Q4 2019, at €157.4 million.
Non-volume related revenue accounted for 52% of total Group revenue in Q4 2019, increasing from 45% of total Group revenue in Q4 2018. The operating cost coverage ratio was at 119% in Q4 2019, compared to 101% in Q4 2018.
EBITDA
| In €m, unless stated otherwise | Q4 2019 | Q4 2018 | % change | Organic (like-for-like) | FY 2019 | FY 2018 | % change | Organic (like-for-like) |
| Revenue | 185.7 | 157.3 | +18.1% | +0.0% | 679.1 | 615.0 | +10.4% | -1.0% |
| Operational expenses excluding D&A | -81.6 | -70.4 | +16.0% | -6.0% | -279.7 | -260.8 | +7.2% | -7.4% |
| Salaries and employee benefits | -45.9 | -33.4 | +37.4% | +6.7% | -153.1 | -118.5 | +29.2% | +8.6% |
| Other expenses | -35.8 | -37.0 | -3.3% | -17.4% | -126.5 | -142.3 | -11.1% | -20.8% |
| EBITDA | 104.1 | 86.9 | +19.8% | +4.9% | 399.4 | 354.3 | +12.8% | +3.8% |
| EBITDA margin | 56.0% | 55.3% | +0.8 pts | +2.7 pts | 58.8% | 57.6% | 1.2 pt | +2.8 pts |
Full-year 2019
Operational expenses excluding depreciation & amortisation increased to €279.7 million, up +7.2%, i.e. €18.9 million, as a result of the consolidation of Oslo Børs VPS, Commcise and OPCVM360 costs for €38.3 million, partially offset by the positive impact of IFRS 16 (€10.9 million) and a continued cost control. On a like-for-like basis, operational expenses excluding depreciation & amortisation decreased by -7.4% compared to 2018.
As a result, EBITDA for the year was €399.4 million, up +12.8%, representing a margin of 58.8%, up +1.2 points compared to 2018. On a like-for-like basis, EBITDA for 2019 was up +3.8%, to €367.6 million, with EBITDA margin at 60.4%, up +2.8 points, compared to the same perimeter in 2018.
Fourth quarter of 2019
Operational expenses excluding depreciation & amortisation increased to €81.6 million, up +16.0%, i.e. €11.3 million, as a result of the consolidation of the costs from Oslo Børs VPS, Commcise and OPCVM360 costs for €15.5 million, partially offset by the impact of IFRS 16 (€2.7 million) and a continued cost control. Operational expenses excluding depreciation & amortisation were also negatively impacted in Q4 2019 by one-off items related to the acquisition of Nord Pool and performance based compensations. On a like-for-like basis, operational expenses excluding depreciation & amortisation decreased by -6.0% compared to Q4 2018.
Consequently, EBITDA for the quarter was €104.1 million, up +19.8%, representing a margin of 56.0%, up +0.8 points compared to Q4 2018. On a like-for-like basis, EBITDA for Q4 2019 was up +4.9%, to €91.2 million, and EBITDA margin was 57.9%, up +2.7 points, compared to the same perimeter in Q4 2018.
Net income, share of the Group
| In €m, unless stated otherwise | Q4 2019 | Q4 2018 | % change | Organic (like-for-like) | FY 2019 | FY 2018 | % change | Organic (like-for-like) |
| EBITDA | 104.1 | 86.9 | +19.8% | +4.9% | 399.4 | 354.3 | +12.8% | +3.8% |
| EBITDA margin | 56.0% | 55.3% | +0.8 pts | +2.7 pts | 58.8% | 57.6% | 1.2 pt | +2.8 pts |
| Depreciation & Amortisation | -12.8 | -6.1 | +108.8% | +30.0% | -43.7 | -23.4 | +86.6% | +39.6% |
| Operating Profit before Exceptional items | 91.3 | 80.8 | +13.0% | +3.0% | 355.7 | 330.9 | +7.5% | +1.2% |
| Exceptional items | -8.2 | -5.5 | +50.6% | -21.9 | -21.5 | +1.9% | ||
| Operating Profit | 83.1 | 75.3 | +10.3% | 333.9 | 309.4 | +7.9% | ||
| Profit before income tax | 72.4 | 71.1 | +1.7% | 325.6 | 311.7 | +4.4% | ||
| Income tax expense | -22.4 | -21.1 | +6.0% | -100.3 | -94.1 | +6.6% | ||
| Share of non-controlling interests | -0.9 | -0.4 | +146.6% | -3.3 | -1.7 | 99.6% | ||
| Net income, share of the Group | 49.0 | 49.6 | -1.2% | 222.0 | 216.0 | +2.8% |
Full-year 2019
Depreciation and amortisation accounted for €43.7 million in 2019, up +86.6%, resulting primarily from the consolidation of Oslo Børs VPS PPA for €6.3 million and the adoption of IFRS 16 (see appendix). On a like-for-like basis, depreciation & amortisation was up +39.6% to €32.7 million, mainly due to the impact of IFRS 16.
Operating profit before exceptional items was €355.7 million, a +7.5% increase compared to 2018. On a like-for-like basis, operating profit before exceptional items was up +1.2%, to €335.0 million.
€21.9 million of exceptional costs were booked in 2019, compared to €21.5 million in 2018. In 2019, exceptional costs resulted mainly from advisory costs, restructuring costs in Oslo Børs VPS and the provision for the early termination of contracts at Oslo Børs VPS. In 2018, exceptional costs resulted from the agreement for the early termination of the trading services contract provided by Deutsche Börse AG to Euronext Dublin, as well as advisory costs and impairments.
Net financing expense for 2019 was €17.4 million compared to a net financing expense of €5.3 million in 2018, resulting mainly from the revaluation of buy-options and deferred payments related to Corporate Services entities, as well as interest expense.
Results from equity investments amounted to €9.1 million in 2019, primarily resulting from the contribution from LCH SA, in which Euronext owns an 11.1% stake and dividends received from Sicovam and Euroclear, partially offset by the impairment of the EuroCCP stake sold in Q4 2019. In 2018, €7.6 million in results from equity investments was reported.
Income tax for 2019 was €100.3 million, impacted by adjustments on deferred tax assets and liabilities, non-deductible acquisition costs and non-deductible expenses linked to the recognition of earn-out liabilities. This translated into an effective tax rate of 30.8% for the year (2018: €94.1 million and 30.2%).
Shares of non-controlling interests mainly relating to Skope8 (60% owned) and Company Webcast (51% owned) amounted to €3.3 million in 2019.
As a result, the reported net profit share of the Group for 2019 increased by +2.8%, to €222.0 million. This represents a reported EPS of €3.19 basic and €3.17 fully diluted in 2019, compared to €3.10 basic and €3.09 fully diluted in 2018. The number of shares used for the basic calculation was 69,673,737 and for the fully diluted calculation was 69,929,727.
Adjusted EPS9 is up +10.9% in 2019, at €3.90, compared to an adjusted EPS of €3.51 in 201810.
In 2019 Euronext generated a net cash flow from operating activities of €253.8 million, compared to €223.5 million in 2018.
At 31 December 2019, Euronext had net debt of €648.5 million and €369.8 million of cash and cash equivalents, representing a net debt on last twelve months pro-forma EBITDA equal to 1.5x.
Fourth quarter 2019
Depreciation and amortisation accounted for €12.8 million in Q4 2019, up +108.8%, resulting mainly from the consolidation of Oslo Børs VPS PPA for €2.8 million and the adoption of IFRS 16 (see appendix). On a like-for-like basis, depreciation & amortisation was up +30.0% to €8.0 million, mainly due to IFRS 16 impact.
Operating profit before exceptional items was €91.3 million, a +13.0% increase compared to Q4 2018. On a like-for-like basis, operating profit before exceptional items was up +3.0%, to €83.2 million.
€8.2 million of exceptional costs was booked in Q4 2019, compared to €5.5 million in Q4 2018. In Q4 2019, exceptional costs resulted primarily from restructuring costs at Oslo Børs VPS, the early termination of services contracts at Oslo Børs VPS as well as advisory costs.
Net financing expense for Q4 2019 was €14.2 million compared to a net financing expense of €4.0 million in Q4 2018, resulting mainly from the revaluation of buy-options and deferred payments related to Corporate Services entities.
Results from equity investments amounted to €3.5 million in Q4 2019, mainly resulting from the contribution from LCH SA, in which Euronext owns an 11.1% stake, dividends received from Sicovam and Euroclear, partially offset by the impairment of the EuroCCP stake sold in Q4 2019. In Q4 2018, €0.2 million in negative results from equity investments was reported.
Income tax for Q4 2019 was €22.4 million, impacted by non-deductible expenses related to the recognition of earn-out liabilities. This translated into an effective tax rate of 31.0% for the quarter (Q4 2018: €21.1 million and 29.7%).
Shares of non-controlling interests mainly relating to Skope11 (60% owned), InsiderLog (80% owned), OPCVM360 (60% owned) and Company Webcast (51% owned) amounted to €0.9 million in Q4 2019.
As a result, the reported net profit share of the Group for Q4 2019 decreased by -1.2%, to €49.0 million. This represents a reported EPS of €0.70 basic and €0.70 fully diluted in Q4 2019, compared to €0.71 basic and €0.71 fully diluted in Q4 2018. The number of shares used for the basic calculation was 69,673,737 and for the fully diluted calculation was 69,929,727
Adjusted EPS12 is up +26.6% in Q4 2019, at €1.11, compared to an adjusted EPS of €0.88 in Q4 201813.
In Q4 2019 Euronext generated a net cash flow from operating activities of €78.8 million, compared to €55.4 million in Q4 2018.
Full-year and Q4 2019 business highlights
¨Listing
| In €m, unless stated otherwise | FY 2019 | FY 2018 | % change | Q4 2019 | Q4 2018 | % change |
| Listing revenue | 129.0 | 106.5 | +21.1% | 36.5 | 29.5 | +23.7% |
| Equity | ||||||
| Annual fees | 28.6 | 23.4 | +22.3% | 8.3 | 5.9 | +41.6% |
| Follow-ons | 16.7 | 19.4 | -14.0% | 1.6 | 5.0 | -67.4% |
| IPOs | 10.6 | 10.2 | +3.9% | 3.1 | 2.7 | +13.1% |
| Debts | 31.1 | 20.0 | +56.0% | 8.8 | 6.1 | +42.9% |
| ETFs, Funds & Warrants | 11.4 | 12.6 | -8.8% | 2.9 | 3.5 | -16.7% |
| Corporate Services | 24.4 | 16.6 | +46.9% | 7.6 | 5.2 | +46.7% |
| Others | 6.0 | 4.4 | +36.9% | 4.3 | 1.1 | +276.8% |
| Money raised14 | 1,281,330 | 1,077,523 | +18.9% | 324,782 | 351,858 | -7.7% |
Full year 2019
Listing revenue was €129.0 million in 2019, an increase of +21.1% compared to 2018, driven by the strong performance of Euronext’s Corporate Services (+€7.8 million) and the consolidation of Oslo Børs VPS for 6.5 months and Euronext Dublin for 3 months (Euronext Dublin was consolidated for 9 months in 2018) collectively contributing €18.3 million. On a like-for-like basis, listing revenue increased by +3.9%.
Primary equity issuances were mixed over the year with a subdued activity in the first half followed by the return of large caps listings across Euronext markets in the second half of the year. This solid listing activity demonstrated the attractiveness of Euronext value proposition to both international and domestic large capitalisations from all sectors, such as Marel, la Française Des Jeux, Prosus, Verallia and Adevinta which altogether added 110 billion of market cap. In addition, Euronext welcomed 41 new listings on its markets in 2019, of which 39 SME listings. In 2019, €5.1 billion was raised on primary markets on Euronext, compared to €5.0 billion in 2018.
The secondary market saw a similar trend over 2019, with follow-ons activity improving through the second half of 2019 reflecting a slight improvement in the economic environment. In 2019, €34.2 billion was raised in secondary equity issues, compared to €64.2 billion in 2018, which was marked by significant large-cap M&A activities in Europe.
In total, €1.3 trillion in equity and debt was raised on Euronext’s markets in 2019, compared to €1.1 trillion in 2018.
Corporate Services reported a strong performance throughout 2019, generating €24.4 million in revenue, including €0.6 million of contribution from Oslo Børs VPS, compared to €16.6 million in 2018, reflecting strong client traction across all the services offered.
Fourth quarter of 2019
Listing revenue was €36.5 million in Q4 2019, an increase of +23.7% compared to Q4 2018, driven by the strong performance of Euronext Corporate Services (+€2.4 million) and Oslo Børs VPS contributing for €5.9 million. On a like-for-like basis, listing revenue increased by +3.9%.
Primary equity issuances continued their momentum, reporting an active Q4 2019 with a dynamic trend for IPOs including large caps, despite the mixed environment. Euronext welcomed three domestic large cap listings with la Française des Jeux, the second-largest lottery in Europe and the fourth-largest worldwide, Verallia, the leading European producer of glass packaging for beverages and food, and TietoEvry, a leading digital services and software company in the Nordics . In addition, Euronext welcomed 12 SME listings on its markets. In Q4 2019, €3.3 billion was raised on primary markets on Euronext, compared to €1.4 billion last year.
Activity on the secondary market decreased compared to Q4 2018, despite improved market conditions. In Q4 2019, €8.2 billion was raised in secondary equity issues, compared to €36.0 billion in Q4 2018 which was marked by large-cap M&A activity.
In total, €324.8 billion in equity and debt was raised on Euronext’s markets in Q4 2019, compared to €351.0 billion in Q4 2018.
Corporate Services reported a strong performance, generating €7.6 million in revenue in Q4 2019, including €0.3 million of contribution from Oslo Børs VPS, compared to €5.2 million in Q4 2018, reflecting strong client traction across all the services offered.
¨Trading
| In €m, unless stated otherwise | FY 2019 | FY 2018 | % change | Q4 2019 | Q4 2018 | % change |
| Trading revenue | 272.8 | 276.6 | -1.4% | 70.8 | 69.8 | +1.4% |
| Cash trading | 205.6 | 210.9 | -2.6% | 53.2 | 52.8 | +0.7% |
| ADV Cash market15 | 7,756 | 8,059 | -3.8% | 8,393 | 8,102 | +3.6% |
| Derivatives trading | 44.3 | 43.9 | +0.9% | 11.9 | 11.4 | +3.8% |
| ADV Derivatives market (in lots) | 585 | 581 | +0.7% | 589 | 602 | -2.2% |
| Number of trading days | 255 | 255 | 64 | 64 | ||
| Spot FX trading | 22.9 | 21.7 | +5.6% | 5.8 | 5.5 | +4.0% |
| ADV spot FX Market (in USDm) | 18,282 | 20,139 | -9.2% | 16,545 | 19,540 | -15.3% |
| Number of trading days | 259 | 259 | 65 | 65 |
Full year 2019
Cash trading
Cash trading revenue decreased by -2.6% in 2019, to a total of €205.6 million, resulting from a decline in trading volumes in a low volatility environment with average daily volume for cash trading decreasing to €7.8 billion in 2019, down -3.8% compared to 201816. On a like-for-like basis, cash trading revenue decreased by -5.8%. The average yield over the year was 0.52bps, and amounted to 0.53bps on a like-for-like basis17, compared to 0.51bps in 2018. The cash trading market share throughout 2019 averaged 68.8% like-for-like, an increase from 66.1% in 2018.
The average daily transaction value of ETFs on the electronic order book was €216 million over 2019, down -18.8% compared to 2018, driven by low volatility levels. The total number of ETFs listed on Euronext was 1,236 at end of December 2019.
Derivatives trading
Derivatives trading revenue increased +0.9% in 2019, to €44.3 million, compared to €43.9 million in 2018. On a like-for-like basis, derivatives trading revenue was down -1.8%. Average daily volume on individual equity derivatives was down -4.2% at 295,227 contracts, while the average daily volume on equity index derivatives was down -2.0% to 240,550 contracts.
Commodity products recorded an decrease in average daily volumes in 2019, down -7.3% to 53,224 contracts compared to 2018.
Yield on derivatives averaged €0.30 in 2019, up +1.7% compared to 2018, resulting from enhanced yield management.
Spot FX trading
Spot FX trading activity on the Euronext FX spot foreign exchange market recorded average daily volumes of $18.3 billion in 2019, down -9.2% compared to $20.1 billion in 2018, impacted by a low volatility environment through 2019. Spot FX trading generated €22.9 million of revenue in 2019, up +5.6% compared to €21.7 million in 2018, thanks to improved yield management.
Fourth quarter of 2019
Cash trading
Cash trading revenue increased by +0.7% in Q4 2019, to a total of €53.2 million, mainly resulting from the consolidation of Oslo Børs cash trading revenue. On a like-for-like basis, cash trading revenue decreased by -4.5%. Average daily volume for cash trading increased to €8.4 billion in Q4 2019, up +3.6% compared to Q4 20181. The average yield over the fourth quarter was 0.49bps, and amounted to 0.53bps on a like-for-like basis18, compared to 0.51bps in Q4 2018. The cash trading market share throughout the fourth quarter of 2019 averaged 71.2% like-for-like, an increase from 66.4% in Q4 2018.
The average daily transaction value of ETFs on the electronic order book was €204 million over Q4 2019, down -22.4% compared to Q4 2018, driven by upticks in volatility.
Derivatives trading
Derivatives trading revenue increased +3.8% in Q4 2019, to €11.9 million, compared to €11.4 million in Q4 2018. On a like-for-like basis, derivatives trading revenue was down -2.3%. Average daily volume on individual equity derivatives was down -8.6% at 286,817 contracts, while the average daily volume on equity index derivatives was down -14.1% to 237,924 contracts.
Commodity products recorded an increase in average daily volumes in Q4 2019, up +19.6% to 54,193 contracts compared to Q4 2018.
Yield on derivatives averaged €0.30 in Q4 2019, up +6.1% compared to Q4 2018, resulting from enhanced yield management offsetting a less favourable product mix.
Spot FX trading
Spot FX trading activity on the Euronext FX spot foreign exchange market recorded average daily volumes of $16.5 billion in Q4 2019, down -15.3% compared to $19.5 billion in Q4 2018, impacted by a low volatility environment through the quarter. Spot FX trading generated €5.8 million of revenue in Q4 2019, up +4.0% compared to €5.5 million in 2018, thanks to improved yield management.
¨Investor Services
Full year 2019
Investor Services, encompassing primarily the activities of Commcise, of which Euronext acquired 78% of the capital in December 2018, as well as Investor Services activities from Oslo Børs VPS, reported €5.7 million of revenue in 2019 as the business benefited from Euronext’s commercial reach and expertise throughout the year.
Fourth quarter of 2019
Investor Services, encompassing primarily the activities of Commcise, of which Euronext acquired 78% of the capital in December 2018, and Investor Services activities from Oslo Børs VPS, reported €1.6 million of revenue in Q4 2019 reflecting the commercial development and the consolidation of Oslo Børs VPS activities.
¨Advanced Data Services19
Full year 2019
Advanced Data Services reported revenue up +8.8% to €128.8 million in 2019 due to the good performance of index activities, particularly on ESG products and structured products, and the consolidation of Oslo Børs VPS. On a like-for-like basis, Advanced Data Services revenues were up +1.1% compared to 2018, thanks to the good performance of the indices business, offset by the decrease of market data revenue.
Fourth quarter of 2019
Advanced Data Services reported revenue up +12.5% to €33.5 million in Q4 2019 driven by the good performance of index activities, particularly on ESG products and structured products, and the consolidation of Oslo Børs VPS. On a like-for-like basis, Advanced Data Services revenues were down -0.3% compared to Q4 2018. The good performance of the indices business, notably on ESG products, offset the decrease of market data revenue.
¨Post-Trade
Full year 2019
Clearing
Clearing revenue was stable in 2019, at €55.2 million, slightly down -0.2% compared to 2018, as lower derivatives trading volumes were partially offset by higher treasury income.
Custody, Settlement and other post-trade
Revenue from Custody, Settlement and other post-trade activities, notably encompassing Interbolsa and VPS activities, increased by +124.9% to €49.6 million in 2019, resulting mainly from the consolidation of Oslo Børs VPS. Both VPS and Interbolsa reported a good performance driven by an increased activity in both custody and settlement.
On a like-for-like basis, revenue from Custody, Settlement and other post-trade was up +1.0%.
Fourth quarter of 2019
Clearing
Clearing revenue was up in Q4 2019, at €14.5 million, +8.0% compared to Q4 2018, reflecting a favourable derivatives product mix and higher treasury income offsetting lower overall trading volumes.
Custody, Settlement and other post-trade
Revenue from Custody, Settlement and other post-trade activities, notably encompassing Interbolsa and VPS activities, increased by +242.2% to €18.8 million in Q4 2019, resulting mainly from the consolidation of Oslo Børs VPS. VPS benefited in Q4 2019 of a high market activity in custody and settlement while Interbolsa performance resulted mainly from an increased settlement activity.
On a like-for-like basis, revenue from Custody, Settlement and other post-trade was up +2.3%.
¨Euronext Technologies20 & Other revenue
Full year 2019
Euronext Technology Solutions & Other revenue increased by +4.8% in 2019, to €37.8 million, as a result of good performance of SFTI/Colocation services, hosted services, connection fees and the consolidation of Oslo Børs VPS. On a like-for-like basis, revenue was up +0.6% compared to last year.
Fourth quarter of 2019
Euronext Technology Solutions & Other revenue increased by +8.4% in Q4 2019, to €9.9 million, as a result of good performance of SFTI/Colocation services and hosted services, and the consolidation of Oslo Børs VPS. On a like-for-like basis, revenue was up +2.6% compared to last year.
Corporate highlights of Q4 2019, since publication of Q3 2019 results on 07 November 2019
¨Volumes in Q4 2019
For the fourth quarter of 2019, the average daily transaction value on the Euronext cash order book stood at €8,392 million, down
-7.0% compared to the same period last year.
The average daily transaction value of ETFs on the electronic order book was €204 million over Q4 2019, up -22.4% compared to Q4 2018. The total number of ETFs listed on Euronext was 1,236 at end of December 2019.
The overall average daily volume on Euronext derivatives stood at 589,027 contracts (-8.2% compared to Q4 2018) and the open interest was 15,254,071 contracts at the end of December 2019 (-0.2% compared to the end of December 2018).
The average daily volume on Euronext FX’s spot foreign exchange market stood at $16,545 million in Q4 2019, down -15.3% compared to the same period last year
¨Successful roll-out of Euronext Derivatives markets to Optiq® trading platform
On 9 December 2019, Euronext announced the successful completion of the roll-out of its Derivatives market to its proprietary multi-market trading technology, Optiq® already powering its Cash Markets. This step was the last one of the full migration of Euronext’s trading systems to Optiq®.
Euronext Cash and Derivatives markets trading communities now both benefit from Euronext new proprietary cutting-edge trading platform Optiq®, providing market-leading trading speeds, reliability, and flexible architecture. Following this successful deployment, the following asset classes are now available for trading on Optiq®: cash equities, government bonds, corporate bonds, ETFs, warrants, certificates, funds, equity derivatives, dividend derivatives, index derivatives, ETF options and commodity derivatives.
Co-created with Derivatives Market customers, through an in-depth client consultation that focused on user-experience, Optiq® for Derivatives Markets offers tenfold reduction in latency and unlimited overall capacity. Market participants across the entire derivatives trading spectrum, from market-makers to crossing desks and the clearing community alike can now benefit from Optiq’s lower latency and faster time-to-market.
The user-centric design and architecture of the Optiq® platform also results in simplified development and maintenance for clients and infrastructure providers in both the Cash and Derivatives Markets.
¨Euronext acquire control of Nord Pool, a leading physical power market in Europe, reinforcing Oslo as Euronext’s hub in the Nordics
On 5 December 2019, Euronext announced that it has entered into binding agreements to acquire 66% of the share capital and voting rights of the Nord Pool group, which runs a leading physical power market in Europe, operating from its headquarters in Oslo and offices in Helsinki, Stockholm, Tallinn, Berlin and London. On 15 January 2020, Euronext announced the completion of the acquisition of 66% of the share capital and voting rights of the Nord Pool group21, after receiving regulatory approvals.
The enterprise value on a debt-free cash-free basis for 100% is NOK 850m (c.€84 million). As part of the transaction, Euronext has entered into a partnership, governed by a shareholder agreement, with the Nordic and Baltic Transmission System Operators (TSOs) that formerly owned Nord Pool, and who retained a 34% stake through a joint holding company. Euronext is pleased to enter into the power market with such strong and experienced partners.
Nord Pool group was created in 1993 and offers power trading, clearing, settlement and associated services in both day-ahead and intraday physical energy markets. Nord Pool currently has a strong European foothold with more than 360 customers from 20 countries. The company operates both core intraday and day-ahead markets in the Nordics, Baltics, the UK, France, Germany, Belgium, the Netherlands, Austria and Luxembourg. In 2018, Nord Pool generated c.€40 million revenue and 524 TWh were traded on its markets.
The acquisition of Nord Pool is in line with Euronext’s strategy to diversify its revenue mix to new asset classes not correlated with financial market cycles, and will strengthen its commodity franchise by leveraging Nord Pool’s leadership position and know-how in physical power markets. This acquisition marks another major step in materialising Euronext’s objective to grow its presence in the Nordic region, following the acquisition of Oslo Børs VPS earlier this year.
Through its strong franchise, Nord Pool will be a pillar of Euronext's Group centre of excellence for commodities in Oslo. In turn, Nord Pool will benefit from Euronext’s extended footprint and commercial efforts in continental Europe to expand the reach of its leading technology, and its employees will join a pan-European Group with international career opportunities.
¨Euronext announces binding agreement to sell its 20% minority stake in EuroCCP
On 10 December 2019, Euronext announced it has entered into a binding agreement to sell its 20% minority stake in EuroCCP to Cboe Global Markets, alongside the other current EuroCCP shareholders.
Euronext remains committed to developing its Post Trade strategy, described in its Let’s Grow Together 2022 strategic plan. Euronext will continue to leverage its long-term derivatives clearing agreement with, and its 11.1% equity stake in, LCH SA, and develop its two fully-owned CSDs in Norway and Portugal, as the foundation for further growth in Post Trade.
The transaction is expected to close in H1 2020, subject to receipt of required regulatory clearances and the arrangement of a supporting liquidity facility at the EuroCCP clearing entity level.
Euronext received net proceeds of approximately €9 million from the sale of its minority stake. As a result of this agreement, Euronext impaired the value of its participation by approximately €6 million in Q4 2019.
¨Euronext’s Statement Regarding Bolsas y Mercados Españoles
On 18 November 2019, following press speculation regarding a potential offer from Euronext for Bolsas y Mercados Españoles (“BME”), Euronext confirmed that it was in talks with the Board of Directors of BME, which may or may not lead to an offer being made.
A further announcement will be made as and when appropriate
Corporate highlights since 31 December 2019
¨Euronext appoints Øivind Amundsen as CEO of Oslo Børs
On 29 January 2020, Euronext announced that the Boards of Oslo Børs VPS Holding ASA and Oslo Børs ASA have approved the appointment of Øivind Amundsen as CEO of Oslo Børs VPS Holding and Oslo Børs. This appointment follows Håvard S. Abrahamsen’s resignation from his position as President and CEO of Oslo Børs VPS Holding and Oslo Børs. Mr Abrahamsen will also step down from his position as member of the Managing Board of Euronext N.V. The Supervisory Board of Euronext N.V. has subsequently nominated Mr Amundsen as member of the Managing Board of Euronext N.V., subject to formal appointment by an Annual Shareholders’ Meeting of Euronext N.V. and the usual regulatory non-objections.
¨Euronext completes the acquisition of Nord Pool on 15 January 2020
Please refer to the above paragraph about Nord Pool acquisition.
Contacts
Investor Relations:
Aurélie Cohen / Clément Kubiak +33 1 70 48 24 27; ir@euronext.com
Media:
Pauline Bucaille +33 1 70 48 24 41; mediateam@euronext.com
About Euronext
Euronext is the leading pan-European exchange, covering Belgium, France, Ireland, The Netherlands, Norway, Portugal and the UK. With close to 1,500 listed issuers worth €4.5 trillion in market capitalisation as of end December 2019, Euronext has an unmatched blue chip franchise that includes 26 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. The Norwegian stock exchange and its clearing & settlement subsidiary, together operating as Oslo Børs VPS, joined Euronext on 17 June 2019.
For the latest news, find us on Twitter (twitter.com/euronext) and LinkedIn (linkedin.com/euronext).
Disclaimer
This press release is for information purposes only: it is not a recommendation to engage in investment activities and 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 available at www.euronext.com/terms-use.
© 2020, Euronext N.V. - All rights reserved.
The Euronext Group processes your personal data in order to provide you with information about Euronext (the "Purpose"). With regard to the processing of these personal data, Euronext will comply with its obligations under the Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 (General Data Protection Regulation, “GDPR”), and any applicable national laws, rules and regulations implementing the GDPR as provided in its privacy statement available at: https://www.euronext.com/privacy-policy.
In accordance with the applicable legislation you have rights as regard to the processing of your personal data:
- for more information on your rights, please refer to: https://www.euronext.com/en/privacy-statement/data-subject-rights-reque…,
- for any request regarding the processing of your data or if you want to unsubscribe to this press release, please use our data subject request form https://connect2.euronext.com/form/data-subjects-rights-request or email our Data Protection Officer at dpo@euronext.com.
APPENDIX
Non-IFRS financial measures
For comparative purposes, the company provides unaudited non-IFRS measures including:
- Operational expenses excluding depreciation and amortisation
- EBITDA, EBITDA margin.
Non-IFRS measures are defined as follows:
- Operational expenses excluding depreciation and amortisation as the total of salary and employee benefits, and other operational expenses
- EBITDA as the operating profit before exceptional items and depreciation and amortisation
- EBITDA margin as the operating profit before exceptional items and depreciation and amortisation, divided by revenue.
Non-IFRS financial measures are not meant to be considered in isolation or as a substitute for comparable IFRS measures and should be read only in conjunction with the consolidated financial statements.
Adjusted EPS definition
| In €m unless stated otherwise | Q4 2019 | Q4 2018 | FY 2019 | FY 2018 |
| Net Income Reported | 49.0 | 49.6 | 222.0 | 216.0 |
| EPS Reported (€ per share) | 0.70 | 0.71 | 3.19 | 3.10 |
| Intangible assets adj. related to acquisitions (PPA) | - 3.8 | - 2.0 | - 13.8 | - 7.4 |
| Exceptional items | - 8.2 | - 5.5 | - 21.9 | - 21.5 |
| Impairments | - 6.0 | - 1.5 | - 6.0 | - 1.5 |
| Revaluation of buy-options and deferred payments | - 13.3 | - 3.2 | - 13.3 | - 3.2 |
| Tax related to those items | 3.0 | 0.8 | 5.5 | 5.2 |
| Adj. Net Income | 77.3 | 61.0 | 271.4 | 244.4 |
| Adj. EPS (€ per share) | 1.11 | 0.88 | 3.90 | 3.51 |
In 2018, some exceptional items such as impairments and revaluations of buy-options were not considered as a part of the net income adjustments due to their low materiality (7 cents per share or 1.9%). In 2019, due to their significance such items were considered part of the adjustment (28 cents per share or 7.1%). As a consequence, 2018 adjusted net income was restated for consistency purposes.
Consolidation of Nord Pool
On 15 January 2020, Euronext completed of the acquisition of 66% of the share capital and voting rights of the Nord Pool group. As a results, Nord Pool accounts are consolidated from 16 January 2020. For informative purpose only, Euronext provides below the impact of the consolidation of Nord Pool on Euronext revenue disclosure, based on Nord Pool 2018 revenue
| In €m (based on 2018 revenue and 9.5975 NOK/EUR) | 40.0 |
| Listing | - |
| Trading revenue | 23.3 |
| Cash Trading | - |
| Derivatives Trading | - |
| Power trading | 23.3 |
| Spot FX Trading | - |
| Investor Services | - |
| Advanced Data Services | 1.8 |
| Post-trade | - |
| Clearing | - |
| Custody, Settlement and other post-trade | - |
| Technology Solutions & other revenue | 14.9 |
| Other income | - |
Consolidated income statement
| Unaudited, In €m | Q4 2019 | Q4 2018 | % var | Organic (like-for-like) |
| Revenue | 185.7 | 157.3 | +18.1% | +0.0% |
| Listing | 36.5 | 29.5 | +23.7% | +3.9% |
| Trading revenue | 70.8 | 69.8 | +1.4% | -3.5% |
| Cash Trading | 53.2 | 52.8 | +0.7% | -4.5% |
| Derivatives Trading | 11.9 | 11.4 | +3.8% | -2.3% |
| Spot FX Trading | 5.8 | 5.5 | +4.0% | +4.0% |
| Investor Services | 1.6 | 0.0 | N/A | N/A |
| Advanced Data Services | 33.5 | 29.8 | +12.5% | -0.3% |
| Post-trade | 33.4 | 18.9 | +76.1% | +6.3% |
| Clearing | 14.5 | 13.4 | +8.0% | +8.0% |
| Custody, Settlement and other post-trade | 18.8 | 5.5 | +242.2% | +2.1% |
| Euronext Technologies & other revenue | 9.9 | 9.2 | +8.4% | +2.6% |
| Other income | 0.0 | 0.1 | -56.4% | -56.4% |
| Operational expenses excluding D&A | -81.6 | -70.4 | +16.0% | -6.0% |
| Salaries and employee benefits | -45.9 | -33.4 | +37.4% | +6.7% |
| Other Operational Expenses | -35.8 | -37.0 | -3.3% | -17.4% |
| System & Communication | -6.7 | -7.9 | -15.2% | -34.1% |
| Professional Services | -12.0 | -12.0 | +0.2% | -19.9% |
| Clearing expense | -7.6 | -7.3 | +3.6% | +3.1% |
| Accommodation | -1.5 | -2.7 | -44.9% | -48.8% |
| Other Operational Expenses | -8.0 | -7.1 | +12.5% | -3.9% |
| EBITDA | 104.1 | 86.9 | +19.8% | +4.9% |
| EBITDA margin | 56.0% | 55.3% | +0.8 pts | +2.7 pts |
| Depreciation & Amortisation | -12.8 | -6.1 | +108.8% | +30.0% |
| Operating Profit before Exceptional items | 91.3 | 80.8 | +13.0% | +3.0% |
| Exceptional items | -8.2 | -5.5 | +50.6% | |
| Operating Profit | 83.1 | 75.3 | +10.3% | |
| Net financing income / (expense) | -14.2 | -4.0 | +259.7% | |
| Results from equity investments | 3.5 | -0.2 | N/A | |
| Profit before income tax | 72.4 | 71.1 | +1.7% | |
| Income tax expense | -22.4 | -21.1 | +6.0% | |
| Share of non-controlling interests | -0.9 | -0.4 | +146.6% | |
| Net income, share of the Group | 49.0 | 49.6 | -1.2% | |
| EPS Reported (in € per share) | € 0.70 | € 0.71 | -1.4% | |
| EPS Adjusted (in € per share) | € 1.11 | € 0.88 | +26.6% |
The figures in this document have not been audited or reviewed by our external auditor.
Consolidated income statement
| Unaudited, In €m | FY 2019 | FY 2018 | % var | Organic (like-for-like) |
| Revenue | 679.1 | 615.0 | +10.4% | -1.0% |
| Listing | 129.0 | 106.5 | +21.1% | +3.9% |
| Trading revenue | 272.8 | 276.6 | -1.4% | -4.3% |
| Cash Trading | 205.6 | 210.9 | -2.6% | -5.8% |
| Derivatives Trading | 44.3 | 43.9 | +0.9% | -1.8% |
| Spot FX Trading | 22.9 | 21.7 | +5.6% | +5.6% |
| Investor Services | 5.7 | 0.0 | N/A | N/A |
| Advanced Data Services | 128.8 | 118.3 | +8.8% | +1.1% |
| Post-trade | 104.8 | 77.4 | +35.5% | +0.1% |
| Clearing | 55.2 | 55.3 | -0.2% | -0.2% |
| Custody, Settlement and other post-trade | 49.6 | 22.1 | +124.9% | +0.0% |
| Euronext Technologies & other revenue | 37.8 | 36.1 | +4.8% | +0.6% |
| Other income | 0.2 | 0.2 | -3.9% | -4.2% |
| Operational expenses excluding D&A | -279.7 | -260.8 | +7.2% | -7.4% |
| Salaries and employee benefits | -153.1 | -118.5 | +29.2% | +8.6% |
| Other Operational Expenses | -126.5 | -142.3 | -11.1% | -20.8% |
| System & Communication | -26.4 | -26.2 | +0.7% | -17.6% |
| Professional Services | -37.1 | -47.0 | -21.1% | -32.6% |
| Clearing expense | -29.4 | -29.8 | -1.5% | -1.6% |
| Accommodation | -5.5 | -10.4 | -47.6% | -53.8% |
| Other Operational Expenses | -28.2 | -28.8 | -2.0% | -12.2% |
| EBITDA | 399.4 | 354.3 | +12.8% | +3.8% |
| EBITDA margin | 58.8% | 57.6% | +1.2% | +2.8 pts |
| Depreciation & Amortisation | -43.7 | -23.4 | +86.6% | +39.6% |
| Operating Profit before Exceptional items | 355.7 | 330.9 | +7.5% | +1.2% |
| Exceptional items | -21.9 | -21.5 | +1.9% | |
| Operating Profit | 333.9 | 309.4 | +7.9% | |
| Net financing income / (expense) | -17.4 | -5.3 | +231.1% | |
| Results from equity investments | 9.1 | 7.6 | +20.0% | |
| Profit before income tax | 325.6 | 311.7 | +4.4% | |
| Income tax expense | -100.3 | -94.1 | +6.6% | |
| Share of non-controlling interests | -3.3 | -1.7 | +99.6% | |
| Net income, share of the Group | 222.0 | 216.0 | +2.8% | |
| EPS Reported (in € per share) | € 3.19 | € 3.10 | +2.7% | |
| EPS Adjusted (in € per share) | € 3.90 | € 3.51 | +10.9% |
The figures in this document have not been audited or reviewed by our external auditor.
Consolidated comprehensive income statement
| Unaudited, In €m | Q4 2019 | Q4 2018 | FY 2019 | FY 2018 |
| Profit for the period | 49.9 | 50.0 | 225.3 | 217.6 |
| Other comprehensive income | ||||
| Items that may be reclassified to profit or loss: | ||||
| – Exchange differences on translation of foreign operations | -0.7 | 2.0 | -2.2 | 6.0 |
| – Gains and losses on cash flow hedges | 0.0 | 0.0 | 0.0 | 0.0 |
| Items that will not be reclassified to profit or loss: | ||||
| – Change in value of equity investments at fair value through other comprehensive income | 1.2 | 35.9 | 12.5 | 35.4 |
| – Income tax impact on change in value of equity investments at fair value through other comprehensive income |
-0.2 | -5.7 | -2.2 | -5.5 |
| – Remeasurements of post-employment benefit obligations | 2.2 | 1.9 | -1.4 | 1.7 |
| – Income tax impact on remeasurements of post-employment benefit obligations | -0.7 | 0.0 | -0.2 | -0.1 |
| Other comprehensive income for the period net of tax | 1.8 | 34.1 | 6.5 | 37.4 |
| Total comprehensive income for the period | 51.7 | 84.1 | 231.8 | 255.1 |
| Comprehensive income attributable to: | ||||
| – Owners of the parent | 49.6 | 83.7 | 228.3 | 253.3 |
| – Non-controlling interests | 2.2 | 0.4 | 3.5 | 1.7 |
The figures in this document have not been audited or reviewed by our external auditor.
Consolidated balance sheet
| Unaudited, In €m | As at 30 Dec 2019 | As at 30 Dec 2018 |
| Non-current assets | ||
| Property, plant and equipment | 58.9 | 38.9 |
| Right-of-use assets | 51.8 | 0.0 |
| Goodwill and other intangible assets | 1,458.8 | 705.6 |
| Deferred income tax assets | 21.0 | 20.9 |
| Investments in associates and JV | 67.0 | 72.7 |
| Financial assets at fair value through OCI | 197.8 | 220.1 |
| Other non current assets | 3.1 | 7.8 |
| Total non-current assets | 1,858.3 | 1,066.1 |
| Current assets | ||
| Trade and other receivables | 137.4 | 110.3 |
| Income tax receivable | 1.4 | 2.5 |
| Derivative financial instruments | 19.4 | 7.4 |
| Other short-term financial assets | 12.1 | 14.2 |
| Cash & cash equivalents | 369.8 | 398.0 |
| Total current assets | 540.1 | 532.4 |
| Assets held for sale | 8.8 | 0.0 |
| Total assets | 2,407.2 | 1,598.5 |
| Shareholders' equity | ||
| Shareholders' equity | 918.1 | 791.1 |
| Non-controlling interests | 15.7 | 11.2 |
| Total Equity | 933.8 | 802.3 |
| Non-current liabilities | ||
| Borrowings | 1,011.5 | 504.9 |
| Lease liabilities | 41.2 | 0.0 |
| Other non-current financial liabilities | 0.0 | 17.4 |
| Deferred income tax liabilities | 78.8 | 21.4 |
| Post employment benefits | 26.0 | 10.7 |
| Contract liabilities | 45.8 | 41.5 |
| Other provisions | 15.1 | 6.0 |
| Total Non-current liabilities | 1,218.3 | 601.9 |
| Current liabilities | ||
| Borrowings | 6.8 | 3.7 |
| Lease liabilities | 14.0 | 0.0 |
| Other current financial liabilities | 30.7 | 7.0 |
| Derivative financial instruments | 0.1 | 0.1 |
| Income tax payable | 23.3 | 11.2 |
| Trade and other payables | 117.3 | 115.3 |
| Contract liabilities | 62.8 | 55.5 |
| Other provisions | 0.1 | 1.4 |
| Total Current liabilities | 255.1 | 194.2 |
| Total equity and liabilities | 2,407.2 | 1,598.5 |
Consolidated statement of cash flows
| Unaudited, In €m | Q4 2019 | Q4 2018 | FY 2019 | FY 2018 |
| Profit before tax | 72.4 | 71.1 | 325.6 | 311.7 |
| Adjustments for: | ||||
| - Depreciation and amortization | 12.8 | 6.1 | 43.7 | 23.4 |
| - Share based payments | 2.6 | 1.0 | 6.9 | 4.0 |
| - Change in fair value of financial instruments | 13.3 | 3.2 | 13.3 | 3.2 |
| - Share of profit from associates and joint ventures | 3.7 | 1.9 | -1.8 | -1.6 |
| - Changes in working capital | -0.2 | -5.0 | -35.4 | -18.9 |
| Cash flow from operating activities | 104.7 | 78.4 | 352.2 | 321.8 |
| Income tax paid | -25.8 | -22.9 | -98.4 | -98.3 |
| Net cash flows from operating activities | 78.8 | 55.4 | 253.8 | 223.5 |
| Cash flow from investing activities | ||||
| Acquisition of associates and joint ventures | -1.0 | 0.0 | -6.0 | -0.9 |
| Acquisition of subsidiaries, net of cash acquired | 0.0 | -27.5 | -581.8 | -176.1 |
| Purchase of financial assets at FVOCI | 0.0 | -31.7 | -22.1 | -31.7 |
| Purchase of current financial assets | 1.4 | -1.3 | -4.1 | -14.3 |
| Redemption of current financial assets | 16.0 | 2.9 | 20.3 | 18.8 |
| Purchase of property, plant and equipment | -3.8 | -3.6 | -14.7 | -11.0 |
| Purchase of intangible assets | -3.2 | -3.7 | -11.4 | -11.3 |
| Proceeds from sale of Property, plant, equipment and intangible assets | 0.0 | 0.2 | 0.0 | 0.4 |
| Dividends received from equity investments | 7.3 | 1.6 | 7.3 | 6.0 |
| Dividends received from associates | 0.0 | 0.0 | 5.2 | 4.9 |
| Net cash flow from investing activities | 16.6 | -63.0 | -607.3 | -215.2 |
| Cash flow from financing activities | ||||
| Proceeds from borrowings, net of transaction fees | 0.0 | -0.1 | 538.9 | 496.6 |
| Repayment of borrowings, net of transaction fees | -45.0 | 0.0 | -90.7 | -165.0 |
| Interest paid | -0.6 | -0.1 | -6.3 | -0.6 |
| Interest received | 0.1 | 0.0 | 5.1 | 0.3 |
| Payment of lease liabilities | -2.8 | 0.0 | -9.7 | 0.0 |
| Transaction of own shares | -0.3 | -0.8 | 0.9 | -5.8 |
| Employee Share transactions | -0.5 | -1.2 | -1.9 | -1.4 |
| Dividends paid to the company's shareholders | 0.0 | 0.0 | -107.2 | -120.4 |
| Dividends paid to non-controlling interests | 0.0 | 0.0 | -1.5 | -1.6 |
| Net cash flow from financing activities | -49.0 | -2.1 | 327.7 | 202.0 |
| Total cash flow over the period | 46.4 | -9.7 | -25.9 | 210.4 |
| Cash and cash equivalents - Beginning of period | 325.1 | 407.6 | 398.0 | 187.8 |
| Non Cash exchange gains/(losses) on cash and cash equivalents | -1.7 | 0.1 | -2.3 | -0.1 |
| Cash and cash equivalents - End of period | 369.8 | 398.0 | 369.8 | 398.0 |
The figures in this document have not been audited or reviewed by our external auditor.
Volumes for the fourth quarter and full year 2019
Cash markets activity
| Q4 2019 | Q4 2018 | FY 2019 | FY 2018 | |||
| Nb trading days | 64 | 64 | 255 | 255 | ||
| NUMBER OF TRANSACTIONS (Buy and sells) (reported trades included) | ||||||
| Q4 2019 | Q4 2018 | Change % | FY 2019 | FY 2018 | Change % | |
| Total Cash Market * | 123,493,494 | 141,728,328 | -12.9% | 482,505,728 | 532,936,622 | -9.5% |
| ADV Cash Market * | 1,929,586 | 2,214,505 | -12.9% | 1,892,179 | 2,089,948 | -9.5% |
| TRANSACTION VALUE ( € million - Single counted) | ||||||
| (€m) | Q4 2019 | Q4 2018 | Change % | FY 2019 | FY 2018 | Change % |
| Total Cash Market * (restated) | 537,072.79 | 577,651.53 | -7.0% | 2,089,090.87 | 2,303,549.49 | -9.3% |
| ADV Cash Market * (restated) | 8,391.76 | 9,025.81 | -7.0% | 8,192.51 | 9,033.53 | -9.3% |
| Total Cash Market * | 537,072.79 | 518,505.27 | +3.6% | 1,977,732.53 | 2,067,917.74 | -4.4% |
| ADV Cash Market * | 8,391.76 | 8,101.64 | +3.6% | 7,755.81 | 8,109.48 | -4.4% |
| * (shares, warrants, trackers, bonds...) | ||||||
| LISTINGS | ||||||
| As at end Dec-19 |
As at end Dec-18 |
|||||
| Number of Issuers on Equities | Change % | |||||
| EURONEXT ** | 1,465 | 1,497 | -2.1% | |||
| SMEs | 1,008 | 1044 | -3.4% | |||
| Number of Listed Securities | ||||||
| Bonds | 47,544 | 42,632 | +11.5% | |||
| ETFs | 1,240 | 1,154 | +7.5% | |||
| Funds | 6,190 | 6,641 | -6.8% | |||
| **(Euronext, Euronext Growth and Euronext Access) | ||||||
| Capital raised on Equities on Primary and Secondary Market | ||||||
| EURONEXT (Euronext, Euronext Growth) | ||||||
| (€m) | Q4 2019 | Q4 2018 | Change % | FY 2019 | FY 2018 | Change % |
| Nb New Listings ** | 15 | 14 | 46 | 64 | ||
| Money Raised New Listings incl over allotment | 3,341 | 1,396 | +139.4% | 5,112 | 4,960 | +3.1% |
| of which Money Raised New Listings | 3,030 | 1,325 | +128.6% | 4,752 | 4,738 | +0.3% |
| Follow-ons on Equities | 8,230 | 36,045 | -77.2% | 34,152 | 64,155 | -46.8% |
| Bonds | 313,211 | 314,417 | -0.4% | 1,242,067 | 1,008,408 | +23.2% |
| Total Money Raised * | 324,782 | 351,858 | -7.7% | 1,281,330 | 1,077,523 | +18.9% |
| of which SMEs | ||||||
| (€m) | Q4 2019 | Q4 2018 | Change % | FY 2019 | FY 2018 | Change % |
| Nb New Listings ** | 12 | 12 | 39 | 57 | ||
| Money Raised New Listings incl over allotment | 553 | 124 | +347.3% | 977 | 1,264 | -22.7% |
| of which Money Raised New Listings | 541 | 122 | +343.3% | 951 | 1,232 | -22.8% |
| Follow-ons on Equities | 2,092 | 1,370 | +52.8% | 5,536 | 5,413 | +2.3% |
| Bonds | 540 | 388 | +39.3% | 1,010 | 1,048 | -3.6% |
| Total Money Raised * | 3,185 | 1,881 | +69.3% | 7,523 | 7,725 | -2.6% |
* included New Listings incl over allotment, Follow-ons on Equities, Corporate Bonds on Euronext Listed Issuers.
Following the completion of the acquisition of the Oslo Børs VPS, Euronext 2018 trading data have been restated to include historic data for Oslo Børs VPS.
Derivatives markets activity
| Q4 2019 | Q4 2018 | FY 2019 | FY 2018 | |||
| Nb trading days | 64 | 64 | 255 | 255 | ||
| Volume (in lots) | ||||||
| Q4 2019 | Q4 2018 | Change % | FY 2019 | FY 2018 | Change % | |
| Equity | 33,583,411 | 37,804,598 | -11.2% | 136,623,161 | 141,184,078 | -3.2% |
| Index | 15,227,136 | 17,719,111 | -14.1% | 61,340,160 | 62,575,207 | -2.0% |
| Futures | 10,352,272 | 11,998,775 | -13.7% | 42,551,679 | 42,608,909 | -0.1% |
| Options | 4,874,864 | 5,720,336 | -14.8% | 18,788,481 | 19,966,298 | -5.9% |
| Individual Equity | 18,356,275 | 20,085,487 | -8.6% | 75,283,001 | 78,608,871 | -4.2% |
| Futures | 2,059,535 | 761,302 | +170.5% | 5,117,843 | 1,807,309 | +183.2% |
| Options | 16,296,740 | 19,324,185 | -15.7% | 70,165,158 | 76,801,562 | -8.6% |
| Commodity | 3,468,381 | 2,899,002 | +19.6% | 13,572,084 | 14,643,125 | -7.3% |
| Futures | 3,314,857 | 2,771,552 | +19.6% | 12,704,393 | 13,495,062 | -5.9% |
| Options | 153,524 | 127,450 | +20.5% | 867,691 | 1,148,063 | -24.4% |
| Other | 645,911 | 365,130 | +76.9% | 1,880,082 | 2,918,474 | -35.6% |
| Futures | 645,811 | 363,760 | +77.5% | 1,878,512 | 2,916,204 | -35.6% |
| Options | 100 | 1,370 | -92.7% | 1,570 | 2,270 | 0 |
| Total Euronext | 37,697,703 | 41,068,730 | -8.2% | 152,075,327 | 158,745,677 | -4.2% |
| Total Euronext (as reported) | ||||||
| Total Futures | 16,372,475 | 15,895,389 | +3.0% | 62,252,427 | 60,827,484 | +2.3% |
| Total Options | 21,325,228 | 25,173,341 | -15.3% | 89,822,900 | 97,918,193 | -8.3% |
| ADV (in lots) | ||||||
| Q4 2019 | Q4 2018 | Change % | FY 2019 | FY 2018 | Change % | |
| Equity | 524,741 | 590,697 | -11.2% | 535,777 | 553,663 | -3.2% |
| Index | 237,924 | 276,861 | -14.1% | 240,550 | 245,393 | -2.0% |
| Futures | 161,754 | 187,481 | -13.7% | 166,869 | 167,094 | -0.1% |
| Options | 76,170 | 89,380 | -14.8% | 73,680 | 78,299 | -5.9% |
| Individual Equity | 286,817 | 313,836 | -8.6% | 295,227 | 308,270 | -4.2% |
| Futures | 32,180 | 11,895 | +170.5% | 20,070 | 7,087 | +183.2% |
| Options | 254,637 | 301,940 | -15.7% | 275,157 | 301,183 | -8.6% |
| Commodity | 54,193 | 45,297 | +19.6% | 53,224 | 57,424 | -7.3% |
| Futures | 51,795 | 43,306 | +19.6% | 49,821 | 52,922 | -5.9% |
| Options | 2,399 | 1,991 | +20.5% | 3,403 | 4,502 | -24.4% |
| Other | 10,092 | 5,705 | +76.9% | 7,373 | 11,445 | -35.6% |
| Futures | 10,091 | 5,684 | +77.5% | 7,367 | 11,436 | -35.6% |
| Options | 2 | 21 | -92.7% | 6 | 9 | -30.8% |
| Total Euronext | 589,027 | 641,699 | -8.2% | 596,374 | 622,532 | -4.2% |
| Total Euronext (as reported) | 589,027 | 602,328 | -2.2% | 580,961 | 585,310 | -0.7% |
| Total Futures | 255,820 | 248,365 | +3.0% | 244,127 | 238,539 | +2.3% |
| Total Options | 333,207 | 393,333 | -15.3% | 352,247 | 383,993 | -8.3% |
| Open Interest | |||
| Dec-19 | Dec-18 | Change % | |
| Equity | 14,220,094 | 14,387,351 | -1.2% |
| Index | 1,476,162 | 1,435,255 | +2.9% |
| Futures | 742,098 | 621,315 | +19.4% |
| Options | 734,064 | 813,940 | -9.8% |
| Individual Equity | 12,743,932 | 12,952,096 | -1.6% |
| Futures | 1,476,899 | 342,836 | +330.8% |
| Options | 11,267,033 | 12,609,260 | -10.6% |
| Commodity | 691,879 | 685,411 | +0.9% |
| Futures | 532,143 | 476,723 | +11.6% |
| Options | 159,736 | 208,688 | -23.5% |
| Other | 342,098 | 238,008 | +43.7% |
| Futures | 342,098 | 237,038 | +44.3% |
| Options | 0 | 970 | |
| Total Euronext | 15,254,071 | 15,310,770 | -0.4% |
| Total Futures | 3,093,238 | 1,677,912 | +84.4% |
| Total Options | 12,160,833 | 13,632,858 | -10.8% |
Spot FX Trading
| Q4 2019 | Q4 2018 | FY 2019 | FY 2018 | |||
| Nb trading days | 65 | 65 | 259 | 259 | ||
| Spot FX VOLUME (in USD millions, single counted) | ||||||
| Q4 2019 | Q4 2018 | Change % | FY 2019 | FY 2018 | Change % | |
| Total Spot FX Market | 1,075,434 | 1,270,124 | -15.3% | 4,734,941 | 5,216,112 | -9.2% |
| ADV Spot FX Market | 16,545 | 19,540 | -15.3% | 18,282 | 20,139 | -9.2% |
*END*
1 Volume-related businesses include Cash, Derivatives, Spot FX trading, Clearing, and IPOs
2 Definition in Appendix
3 Annual General Meeting of Shareholders
4 Based on H2 2019 reported operating costs excluding D&A, excluding Nord Pool
5 H2 2019 annualised cost base of c. €311.0 million
6 Volume-related businesses include Cash, Derivatives, Spot FX trading, Clearing, and IPOs
7 Non-volume related businesses revenue divided by operating costs (excluding D&A)
8 Formerly known commercially as iBabs
9 Definition in Appendix
10 2018 adjusted EPS has been restated. Details in Appendix
11 Formerly known commercially as iBabs
12 Definition in Appendix
13 2018 adjusted EPS has been restated. Details in Appendix
14 2018 figures restated to include Oslo Børs VPS
15 Following the completion of the acquisition of Oslo Børs VPS, Euronext 2018 trading data have been restated to include historic data for Oslo Børs VPS.
16 On a reported basis
17 Excluding Oslo Børs VPS
18 Excluding Oslo Børs VPS
19 Previously reported as ‘Market Data & Indices’
20 Previously reported as ‘Market Solutions’
21 Including Nord Pool AS, Nord Pool Consulting AS and European Market Coupling Operator AS
Attachment