Back

Euronext publishes Q2 2019 Results

Euronext publishes Q2 2019 Results
CONTACT - Media:

 
CONTACT - Investor Relations:
Amsterdam +31.20.721.4133 Brussels +32.2.620.15.50 +33.1.70.48.24.17    
Dublin +353.1.617.4266 Paris +33.1.70.48.24.45      
Lisbon +351.210.600.614 Oslo +47.22.34.17.40      

EURONEXT PUBLISHES Q2 2019 RESULTS                                                  
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 0.54bps2 (up +7.3%) in a low volumes environment (Cash ADV2 down -11.6% at €7.4bn)
    • Advanced Data Services3 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 revenue4 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 EPS5 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.”

Euronext Q2 2019 financial performance

In €m, unless stated otherwise Q2 2019 Q2 2018 % change Organic
(like for like)
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
Depreciation & Amortisation -8.9 -5.6 +59.6% +50.3%
Operating Profit before Exceptional items 89.2 82.0 +8.8% +5.6%
Exceptional items -10.0 -6.2 +62.5% N/A
Operating Profit 79.2 75.8 +4.4% N/A
Profit for the period 53.4 55.8 -4.4% N/A
Reported EPS (€ per share)   0.77  0.80 -4.5% N/A
Adjusted EPS  (€ per share)   0.93    0.89  +4.5%  N/A

Revenue

Unaudited, In €m Q2 2019 Q2 2018 % var Organic
(like for like)
Revenue 159.0 156.3 +1.8% -1.7%
Listing 29.7 27.4 +8.6% +5.0%
Trading revenue 66.7 70.3 -5.1% -5.9%
Investor Services 1.2 - N/A N/A
Advanced Data Services 30.9 29.4 +5.2% +2.9%
Post-trade 22.0 20.2 +8.6% -1.9%
Technology Solutions & other revenue 8.7 9.0 -3.1% -4.2%
Other income -0.1 0.1 N/A N/A

In the second quarter of 2019, Euronext consolidated revenue increased to €159.0 million, up +1.8%, mainly driven by the initial contribution from Oslo Børs VPS, Investor Services and continuing increased activity of Corporate Services. On a like-for-like basis (excluding the consolidation of Oslo Børs VPS and Commcise in Q2 2019), Euronext consolidated revenue decreased by -1.7% in Q2 2019, to €153.6 million.

Non-volume related revenue7 amounted to 48% of total Group revenue in Q2 2019, increasing from 44% of total Group revenue in Q2 2018. The operating cost coverage ratio8 was 124% in Q2 2019, compared to 100% in Q2 2018.

EBITDA

In €m, unless stated otherwise Q2 2019 Q2 2018 % change Organic
(like for like)
Revenue 159.0 156.3 +1.8% -1.7%
Operational expenses excluding D&A -60.9 -68.7 -11.3% -14.8%
Salaries and employee benefits -33.6 -30.5 +10.2% +5.9%
Other expenses -27.4 -38.3 -28.5% -31.3%
EBITDA 98.1 87.6 +12.0% +8.5%
EBITDA margin 61.7% 56.0% +5.7 pts +5.8 pts

Operational expenses excluding Depreciation & Amortisation decreased to €60.9 million, down -11.3%, ie. €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. It is to be noted that the adoption of IFRS 16 from 1 January 2019 led to the recognition of €2.7 million of operating expenses in Depreciation and Amortisation in Q2 2019 (see appendix for the detailed impact). On a like-for-like basis, operational expenses excluding Depreciation & Amortisation decreased -14.8% compared to Q2 2018.

As a consequence, EBITDA for the quarter was €98.1 million, up +12.0%, representing a margin of 61.7%, up +5.7 points compared to Q2 2018. On a like-for-like basis, EBITDA for Q2 2019 was up +8.5%, to €95.0 million, and EBITDA margin was 61.9%, up +5.8 points, compared to the same perimeter in Q2 2018.

Net profit

In €m, unless stated otherwise Q2 2019 Q2 2018 % change
EBITDA 98.1 87.6 +12.0%
EBITDA margin 61.7% 56.0% +5.7 pts
Depreciation & Amortisation -8.9 -5.6 +59.6%
Operating Profit before Exceptional items 89.2 82.0 +8.8%
Exceptional items -10.0 -6.2 +62.5%
Operating Profit 79.2 75.8 +4.4%
Net financing income / (expense) -2.0 -1.0 +97.3%
Results from equity investments 1.4 5.5 -74.4%
Profit before income tax 78.6 80.3 -2.1%
Income tax expense -24.3 -24.0 +1.1%
Share of non-controlling interests -0.9 -0.4 +121.7%
Profit for the period 53.4 55.8 -4.4%

Depreciation and Amortisation accounted for €8.9 million in Q2 2019, up +59.6%, primarily due to the adoption of IFRS 16. On a like-for-like basis, Depreciation & Amortisation was up +50.3% to €8.4 million.

Operating profit before exceptional items was €89.2 million, a +8.8% increase compared to Q2 2018. On a like-for-like basis, operating profit before exceptional items was up +5.6%, to €86.6 million.

€10.0 million of exceptional costs were booked in Q2 2019 compared to €6.2 million in Q2 2018, stemming mainly from the acquisition of Oslo Børs VPS.

Net financing expense for Q2 2019 was €2.0 million compared to €1.0 million in Q2 2018, resulting mainly from adverse foreign exchange impact (GBP/Euro).

Results from equity investments amounted to €1.4 million in Q2 2019, resulting from the contribution from LCH SA of which Euronext owns an 11.1% stake. In Q2 2018, €5.5 million of results from equity investments were reported, resulting primarily from dividends received from Euroclear and from the contribution from LCH SA. Dividends from Euroclear were postponed and are expected to be paid in the fourth quarter of 2019.

Income tax for Q2 2019 was €24.3 million, impacted by non-deductible exceptional items. This translated into an effective tax rate for the quarter of 31.0% (Q2 2018: €24.0 million and 30.0%).

Share of non-controlling interests mainly relating to Euronext FX (formerly FastMatch) (97% owned), Skope9 (60% owned), InsiderLog (80% owned), Commcise (78% owned) and Company Webcast (51% owned) amounted to €0.9 million in Q2 2019.

As a result, the reported net profit share of the Group for Q2 2019 decreased by -4.4%, to €53.4 million. This represents a reported EPS of €0.77 basic and €0.76 fully diluted in Q2 2019, compared to €0.80 basic and €0.80 fully diluted in Q2 2018. The number of shares used for the basic calculation was 69,632,688 and for the fully diluted calculation was 69,952,845.

Adjusted EPS10 is up +4.5% in Q2 2019, at €0.93, compared to €0.89 in Q2 2018.

In Q2 2019 Euronext generated a net cash flow from operating activities of €39.5 million, compared to €22.4 million in Q2 2018.

At 30 June 2019, Euronext had net debt of €783.0 million and €324.3 million of cash and cash equivalents, representing a net debt on last twelve months pro-forma EBITDA equal to 1.9x.


Q2 2019 business highlights

  • Listing
In €m, unless stated otherwise Q2 2019 Q2 2018 % change
Listing revenue 29.7 27.4 +8.6%
Equity      
Annual fees 6.2 5.9 +5.2%
Follow-ons 4.3 4.9 -12.4%
IPOs 2.3 2.6 -11.5%
Debts 7.6 6.0 +27.0%
ETFs, Funds & Warrants 2.8 3.1 -11.6%
Corporate Services 5.7 3.8 +51.7%
Others 0.9 1.1 -23.7%
Money raised 329,951 217,518 +51.7%

Listing revenue was €29.7 million in Q2 2019, an increase of +8.6% compared to Q2 2018, driven by the strong performance OF Corporate Services (+€2.0 million) and Oslo Børs VPS contributing €1.0 million. On a like-for-like basis, listing revenue increased by +5.0%.

Primary equity issuances activity was low in Q2 2019, marked by macro uncertainties in Europe. It is worth noting that Marel,
the Icelandic food processor company and largest company in Iceland by market value, chose Euronext for its secondary listing, demonstrating Euronext’s value proposition for Nordic companies willing to expand their shareholder base and access international capital markets. In addition, Euronext welcomed 5 SME listings on its markets. In Q2 2019, €370 million were raised on Euronext, compared to €1,252 million last year.

Activity on the secondary market improved, driven by financing needs from large capitalisations. In Q2 2019, €12.9 billion were raised in secondary equity issues, compared to €10.6 billion in Q2 2018.

In total, €330.0 billion in equity and debt were raised on Euronext’s markets in Q2 2019, compared to €217.5 billion in Q2 2018.

Corporate Services reported a strong performance, generating €5.7 million in revenue in Q2 2019, compared to €3.8 million in Q2 2018, reflecting high commercial intensity with both issuers and non-listed users.

  • Trading
In €m, unless stated otherwise Q2 2019 Q2 2018 % change
Trading revenue 66.7 70.3 -5.1%
Cash trading 50.7 53.9 -5.9%
ADV Cash market 7,441 8,418 -11.6%
Derivatives trading 10.6 10.9 -2.8%
ADV Derivatives market (in lots) 571,390 601,575 -5.0%
Number of trading days 62 63  
Spot FX trading 5.4   5.6  -2.5%
  ADV spot FX Market (in USDm) 17,462 21,429 -18.5%
Number of trading days 65 65  

Cash trading

In a low volatility environment, cash trading revenue decreased by -5.9% in Q2 2019, to a total of €50.7 million. On a like-for-like basis, cash trading revenue decreased by -6.7%. Average daily volume for cash trading decreased to €7.4 billion in Q2 2019, down
-11.6% compared to Q2 2018, while the average yield over the quarter increased by +7.3% to 0.54bps11 and the cash trading market share throughout the second quarter of 2019 averaged 68.2%, an increase from 66.1% in Q2 2018.

The average daily transaction value of ETFs on the electronic order book was €227 million over Q2 2019, down -15.5% compared to Q2 2018, impacted by low volatility levels. The total number of ETFs listed on Euronext was 1,208 at end of June 2019.

Derivatives trading

Derivatives trading revenue decreased -2.8% in Q2 2019, to €10.6 million, compared to €10.9 million in Q2 2018. Average daily volume on individual equity derivatives was down -9.3% at 285,341 contracts, while the average daily volume on equity index derivatives was up +3.4% to 232,887 contracts. On a like-for-like basis, derivatives trading revenue decreased by -3.6%.

Commodity products12 recorded a decline in average daily volumes in Q2 2019, down -14.0% to 53,162 contracts.

Yield1 on derivatives averaged 0.30bps in Q2 2019, up +3.1% compared to Q2 2018.

Spot FX trading

Spot FX trading activity on Euronext FX spot foreign exchange market recorded average daily volumes of $17.5 billion, down -18.5% compared to Q2 2018. Thanks to positive revenue mix and market share management in a challenging market environment, spot FX trading generated €5.4 million of revenue in Q2 2019, down -2.5% compared to Q2 2018.

  • Investor Services

Investor Services, encompassing the activities of Commcise, a provider of award-winning research evaluation and commission management solutions for financial services firms, of which Euronext acquired 78% of the capital in December 2018, reported €1.2 million of revenue in the second quarter of 2019. The business continued to grow, benefiting from Euronext’s financial standing, reach and expertise with asset managers and broker dealers.

  • Advanced Data Services

Advanced Data Services reported revenue up +5.2% to €30.9 million in Q2 2019 due the good performance of indices activities and the consolidation of Oslo Børs VPS. On a like-for-like basis, Advanced Data Services revenue are up +2.9% compared to Q2 2018, thanks to the good performance of indices business.

  • Post-Trade

Clearing

Clearing revenue was down in Q2 2019, at €14.2 million, -2.9% compared to Q2 2018, resulting from lower derivatives volumes partially offset by higher treasury income.

Custody, Settlement and other post-trade

Revenue from Custody, Settlement and other post-trade activities increased + 38.8% to €7.7 million in Q2 2019, resulting primarily from the consolidation of Oslo Børs VPS, as well as from the good performance of Interbolsa.

On a like-for-like basis, revenue from Custody, Settlement and other post-trade was slightly up +0.6%.

  • Euronext Technology Solutions & Other revenue

Euronext Technology Solutions & Other revenue decreased by -3.1% in Q2 2019, to €8.7 million, as a result of commercial delivery project recognition difference, while Managed Services and SFTI/Colocation activities recorded good performance. On a like-for-like basis, revenue was down -4.2% compared to last year.


Corporate highlights of Q2 2019, since publication of Q1 2019 results on 15 May 2019

  • Volumes in Q2 2019

For the second quarter of 2019, the average daily transaction value on the Euronext cash order book stood at €7,441 million, down             -11.6% compared to the same period last year.

The average daily transaction value of ETFs on the electronic order book was €227 million over Q2 2019, down -15.5% compared to Q2 2018. The total number of ETFs listed on Euronext was 1,208 at end of June 2019.

The overall average daily volume on Euronext derivatives stood at 571,390 contracts (-5.0% compared to the second quarter of 2018) and the open interest was 15,746,263 contracts at the end of June 2019 (-12.1% compared to the end of June 2018).

The average daily volume on Euronext FX’s spot foreign exchange market stood at $17,462 million in Q2 2019, down -18.5% compared to the same period last year.

  • Completed acquisition of Oslo Børs VPS

Euronext’s shareholders unanimously voted in favour of Euronext’s acquisition of up to 100% of Oslo Børs VPS’s capital during the General Meeting of Shareholders held on 16 May 2019 in Amsterdam. Shareholders’ approval was the last major condition to complete the transaction, since most of the other condition precedents highlighted in Euronext’s offer document were already met, including the clearance received from the Norwegian Ministry of Finance.

On 31 May 2019, Euronext completed its confirmatory due diligence on Oslo Børs VPS, declared its offer unconditional and launched an unconditional offer at NOK 158 plus a fixed interest payment of NOK 3.21 per share for all issued and outstanding shares in Oslo Børs VPS not already owned by Euronext, open for acceptance until 28 June 2019 at 18:30 Central European Time. Following the launch of the unconditional offer, the Board of Directors of Oslo Børs VPS recommended on 31 May 2019 that shareholders in Oslo Børs VPS wishing to sell their Shares should accept the offer from Euronext.

On 18 June 2019, Euronext announced it completed settlement of shares under its offers launched on 14 January 2019 and 31 May 2019. Euronext then owned 97.8% of the total issued and outstanding share capital of Oslo Børs VPS and fully started to consolidate Oslo Børs VPS accounts from 14 June 2019.

On 4 July 2019, following completion of its unconditional offer launched on 31 May 2019, Euronext  acquired 42,747,242 shares of Oslo Børs VPS, representing 99.4% of the total issued and outstanding share capital.

Further to this, the board of Euronext resolved, pursuant to section 4-25 of the Norwegian Public Limited Liability Companies Act, to carry out a compulsory acquisition of all the remaining shares in Oslo Børs VPS not already owned by it. The offered redemption amount was the same as offered to shareholders in the offer launched on 31 May 2019, and was deposited with SEB. Notices of the compulsory acquisition with further information were distributed to all Oslo Børs VPS shareholders of record whose addresses were known and whose shares were acquired by way of the compulsory acquisition. In addition, the compulsory acquisition was announced electronically by the Norwegian Register of Business Enterprises.

As a consequence of the above, Euronext acquired from 4 July 2019 the rights and ownership of the remaining shares subject to the compulsory acquisition which were automatically transferred to Euronext, and accordingly Euronext is now the beneficial owner of 100% of the Oslo Børs VPS shares. The Oslo Børs VPS shares were also deregistered from the N-OTC.

As previously announced, Håvard Abrahamsen, President and CEO of Oslo Børs and Oslo Børs VPS Holding was appointed, subject to regulatory and shareholders’ approval,  member of the Managing Board of Euronext (see below).

  • Launch of a €500 million 10-year bond

On 4 June 2019, launched a €500 million, 10-year bond issue, rated “A-” by S&P, with an annual coupon of 1.125% and listed on Euronext Dublin. Euronext N.V. is rated “A-, stable outlook” by S&P since 31 May 2019.

The order book reached an amount of more than €3bn, and was more than 6 times oversubscribed. The success of this transaction shows investors' strong confidence in Euronext’s growth ambitions, strategy and solid credit profile.

The proceeds of the issue will be used to (i) pre-finance the outstanding shares of Oslo Børs VPS not already owned by Euronext, and (ii) for general corporate purposes in line with Euronext’s strategy.

  • Euronext invests in Tokeny solutions, the compliant tokenization platform

On 28 June 2019, Euronext subscribed the entire €5 million capital increase of Tokeny Solutions, resulting in a 23.5% stake and strong governance representation.

Launched in 2017, Tokeny Solutions provides all private market securities issuers, from mid-cap and asset management companies to advisors like investment banks, with modular and user-friendly end-to-end solutions to issue, manage and transfer tokenized securities on public blockchains. Tokeny Solutions’ unique T-REX protocol13 integrates compliance obligations into the digital asset smart contract, to create tokens compliant by design.

Tokenization14 allows institutions to digitize financial assets, such as equities, debt-like instruments and funds, and streamline administration to provide clients a digital-first service. Tokeny Solutions’ end-to-end platform enables the issuance and the management of tokenized securities throughout their lifecycle.

This investment complements Euronext’s position in the nascent digital asset industry, combining Tokeny Solutions’ token management expertise with LiquidShare’s post-trade solutions.

Selected as 2019 Startup of the Year at KPMG’s FinTech Awards Luxembourg, Tokeny Solutions will allow Euronext to onboard a renowned team in the digital asset industry, and broaden its client base to private companies and investment firms.

Convinced of the long term impact of tokenization on the financial industry, Euronext is committed to developing solutions that continue to serve its clients and ecosystem going forward.

  • Euronext reference shareholders agreement renewed for two years

On 17 June 2019, Euronext was informed that the group of Reference Shareholders, holding 23.86% of its share capital, has decided to extend an amended version of their Reference Shareholders Agreement. This agreement dated 21 June 2017 was due to expire on 20 June 2019, and is now extended for a further period of two years commencing on 20 June 2019.

The new Reference Shareholders group will comprise five of the existing members and account for 23.27% of Euronext share capital. The new Reference Shareholders agreed on a new two-year lock-up period commencing on 20 June 2019 and expiring on 19 June 2021. The Reference Shareholders will maintain their current level of representation on the Euronext Supervisory Board retaining their right to jointly nominate one third of the Supervisory Board seats.

The new group of Reference Shareholders is composed of:

Name of reference shareholder Number of shares Individual shareholding (% of capital)
ABN AMRO Bank N.V. through its subsidiary ABN AMRO Participaties Fund I B.V. 385,000 0.55%
BNP Paribas Fortis 1,554,000 2.22%
Caisse des Dépôts et Consignations15 5,600,000 8.00%
Euroclear S.A./N.V. 5,600,000 8.00%
Société Fédérale de Participations et d’Investissement/ Federale Participatie – en Investeringsmaatschappij 3,150,000 4.50%
TOTAL SHAREHOLDING 16,289,000 23.27%

In addition to the renewed Reference Shareholders Agreement, the Letter Agreement dated 13 June 2017 has been amended. The revised Letter Agreement, dated 17 June 2019 aims at pursuing the regular dialogue between Euronext and its Reference Shareholders, addressing the following main topics:

  • the right of the Euronext Reference Shareholders to retain one third of the Supervisory Board seats (3)
  • the use by the Euronext Boards of the delegated authorities for the issuance / repurchase of shares, with the possible exclusion or restriction of pre-emption rights
  • the process of communication between Euronext and its Reference Shareholders, which includes periodical meetings on topics including strategy, governance and financing structure
  • the consultation of the Euronext Reference Shareholders in the selection procedures in case of any vacancies for the CEO, the COO or Supervisory Board positions.

Corporate highlights since 30 June 2019

  • Euronext invests in OPCVM360

On 9 July 2019, Euronext acquired 60% of OPCVM360, a leading fund data provider in France, with an option to acquire the remaining capital in 2023. Through its innovative technology and user-friendly API, OPCVM360 collects and delivers high-quality European funds reference data to banks and insurers’ back-offices, wealth managers, asset managers, robo-advisors and financial media. This acquisition will complement Euronext’s Advanced Data Services offering and support its ambition to provide value-added services to both buy-side and sell-side clients in Europe.

  • Appointments at the Managing Board

On 31 July 2019, the Supervisory Board has nominated Stéphane Boujnah for re-appointment to the Managing Board and has nominated Håvard Abrahamsen, pending non-objection from the College of Regulators of Euronext, for appointment to the Managing Board, each for a term of four years, subject to shareholders’ approval. It is the Supervisory Board’s intention to re-appoint Stéphane Boujnah as the Chairman of the Managing Board once his re-appointment into the Managing Board has taken effect, after the approval during the next general meeting of shareholders.

Agenda

A conference call and a webcast will be held tomorrow Thursday 1 August 2019, at 9.00am CET (Paris time) / 8.00am UK time:

Website : www.euronext.com/en/investors

To connect to the conference call, please dial:

  • UK Number:                    +44 203 003 2666
  • FR Number:                     +33 1 70 37 71 66
  • 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.

Next publications and events

  • 11 October 2019: Investor Day in Paris
  • 7 November 2019: Q3 2019 results

Contacts

Investor Relations:
Aurélie Cohen, Head of Investor Relations                                            +33 1 70 48 24 17; ir@euronext.com  

Media:
Pauline Bucaille, Chief Communication Officer                                     +33 1 70 48 24 41; mediateam@euronext.com

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 14 June 2019. With 1,482 listed issuers worth €4.1 trillion in market capitalisation as of end June 2019, Euronext is an unmatched blue chip franchise that has 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. 

For the latest news, find us on Twitter (twitter.com/euronext) and LinkedIn (linkedin.com/euronext).

Disclaimer

This press relase 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 July 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.
© 2019, 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/en/privacy-policy.
In accordance with the applicable legislation you have rights as regard to the processing of your personal data:


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.

Adoption of IFRS 16 from Q1 2019

Until the 2018 financial year, payments made under operating leases were charged to profit or loss on a straight line basis over the period of the lease. On adoption of IFRS 16, the Group recognised right-of-use assets and lease liabilities for those leases previously classified as operating leases, except for short-term leases and leases of low-value assets for which associated payments are recognised on a straight-line basis as an expense in profit or loss.
The adoption of IFRS 16 from 1 January 2019 led to the recognition of €2.7 million of operating expenses in Depreciation and Amortisation in Q2 2019.

Adjusted EPS definition

In €m unless stated otherwise Q2 2019 Q2 2018 H1 2019 H1 2018
Net Income Reported   53.4    55.8    109.5    115.9 
EPS Reported (€ per share)   0.77    0.80    1.57    1.67 
Intangible assets adj. related to acquisitions (PPA) -  2.4  -  1.8  -  4.5  -  3.3 
Exceptional items -  10.0  -  6.2  -  13.3  -  7.2 
Tax related to those items   1.1    2.0    1.9    2.3 
Adjusted for intangible assets related to acquisitions, capital gains or losses and exceptional items, incl. tax        
Adj. Net Income   64.6    61.8    125.4    124.1 
Adj. EPS (€ per share)   0.93    0.89    1.80    1.78 


Consolidated income statement

Unaudited, In €m Q2 2019 Q2 2018 % var Organic
(like for like)
Revenue 159.0 156.3 +1.8% -1.7%
Listing 29.7 27.4 +8.6% +5.0%
Trading revenue 66.7 70.3 -5.1% -5.9%
Cash Trading 50.7 53.9 -5.9% -6.7%
Derivatives Trading 10.6 10.9 -2.8% -3.6%
Spot FX Trading 5.4 5.6 -2.5% -2.5%
Investor Services 1.2 - N/A N/A
Advanced Data Services 30.9 29.4 +5.2% +2.9%
Post-trade 22.0 20.2 +8.6% -1.9%
Clearing 14.2 14.6 -2.9% -2.9%
Custody, Settlement and other post-trade 7.7 5.6 +38.8% +0.6%
Technology Solutions & other revenue 8.7 9.0 -3.1% -4.2%
Other income -0.1 0.1 -289.7% -56.0%
Operational expenses excluding D&A -60.9 -68.7 -11.3% -14.8%
Salaries and employee benefits -33.6 -30.5 +10.2% +5.9%
Other Operational Expenses -27.4 -38.3 -28.5% -31.3%
System & Communication -5.7 -6.5 -12.2% -19.0%
Professional Services -6.5 -12.8 -48.9% -51.3%
Clearing expense -7.4 -7.7 -3.5% -3.5%
Accommodation -1.3 -2.6 -49.5% -53.5%
Other Operational Expenses -6.4 -8.7 -26.4% -29.1%
EBITDA 98.1 87.6 +12.0% +8.5%
EBITDA margin 61.7% 56.0% +5.7 pts +5.8 pts
Depreciation & Amortisation -8.9 -5.6 +59.6% +50.3%
Operating Profit before Exceptional items 89.2 82.0 +8.8% +5.6%
Exceptional items -10.0 -6.2 +62.5%  
Operating Profit 79.2 75.8 +4.4%  
Net financing income / (expense) -2.0 -1.0 N/A  
Results from equity investments 1.4 5.5 -74.4%  
Profit before income tax 78.6 80.3 -2.1%  
Income tax expense -24.3 -24.0 +1.1%  
Share of non-controlling interests -0.9 -0.4 +121.7%  
Profit for the period 53.4 55.8 -4.4%  
      
EPS Reported (in € per share) € 0.77 € 0.80 -4.5%  
EPS Diluted (in € per share) € 0.76 € 0.80 -4.4%  

The figures in this document have not been audited or reviewed by our external auditor.


Consolidated comprehensive income statement

Unaudited, In €m Q2 2019 Q2 2018
Profit for the period 54.2 56.2
     
Other comprehensive income    
Items that may be reclassified to profit or loss:    
– Exchange differences on translation of foreign operations 4.5 7.2
– Gains and losses on cash flow hedges 0.5 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 11.3 -0.5
– Income tax impact on change in value of equity investments at fair value through
  other comprehensive income
-1.2 0.1
– Remeasurements of post-employment benefit obligations -2.7 -0.2
– Income tax impact on remeasurements of post-employment benefit obligations 0.3 0.0
Other comprehensive income for the period net of tax 12.6 6.6
Total comprehensive income for the period 66.9 62.8
     
Comprehensive income attributable to:    
– Owners of the parent   66.0  62.2
– Non-controlling interests    0.9  0.6

The figures in this document have not been audited or reviewed by our external auditor.

Consolidated balance sheet

Unaudited, In €m As at 30 Jun 2019 As at 31 Mar 2019
Non-current assets    
Property, plant and equipment 46.9 39.4
Right-of-use assets 54.9 51.3
Goodwill and other intangible assets 1,413.2 712.4
Deferred income tax assets 28.2 20.4
Investments in associates and JV 76.4 74.7
Financial assets at fair value through OCI 196.3 240.1
Other non current assets 8.9 7.8
Total non-current assets 1,825.0 1,146.1
     
Current assets    
Trade and other receivables 132.4 120.0
Income tax receivable 4.9 2.5
Derivative financial instruments 23.0 7.4
Other short-term financial assets 24.8 18.7
Cash & cash equivalents 324.3 419.1
Total current assets 509.3 567.7
     
Total assets   2,334.3    1,713.8 
     
Shareholders' equity    
Shareholders' equity 811.5 852.0
Non-controlling interests 28.9 13.9
Total Equity 840.4 865.9
     
Non-current liabilities    
Borrowings 1,053.6 505.1
Lease liabilities 45.1 42.7
Deferred income tax liabilities 24.5 23.0
Post employment benefits 30.5 10.8
Contract liabilities 43.7 37.4
Other provisions 8.7 7.8
Total Non-current liabilities 1,206.2 626.8
     
Current liabilities    
Borrowings 53.7 5.1
Lease liabilities 13.3 11.1
Other current financial liabilities 17.4 17.4
Derivative financial instruments 0.0 1.3
Income tax payable 16.5 15.4
Trade and other payables 97.9 94.0
Contract liabilities 88.8 76.5
Other provisions 0.1 0.4
Total Current liabilities 287.7 221.2
     
Total equity and liabilities 2,334.3 1,713.8

The figures in this document have not been audited or reviewed by our external auditor.

Consolidated statement of cash flows

Unaudited, In €m Q2 2019 Q2 2018
Profit before tax 78.6 80.3
     
Adjustments for:    
- Depreciation and amortization 8.9 5.6
- Share based payments 1.2 1.1
- Share of profit from associates and joint ventures -1.4 -1.1
- Changes in working capital -16.9 -27.7
Cash flow from operating activities 70.4 58.2
Income tax paid -30.8 -35.8
Net cash flows from operating activities 39.5 22.4
     
Cash flow from investing activities    
Acquisition of associates and joint ventures -5.0 0.0
Acquisition of subsidiaries, net of cash acquired -558.4 -0.6
Purchase of financial assets at FVOCI -2.1 0.0
Purchase of current financial assets 4.2 0.0
Redemption of current financial assets 0.0 8.9
Purchase of property, plant and equipment -4.4 -2.5
Purchase of intangible assets -2.2 -2.7
Proceeds from sale of Property, plant, equipment and intangible assets 0.0 0.1
Dividends received from equity investments16 0.0 4.3
Dividends received from associates 5.1 4.9
Net cash flow from investing activities -562.9 12.5
     
Cash flow from financing activities    
Proceeds from borrowings, net of transaction fees 538.9 323.6
Repayment of borrowings, net of transaction fees 0.0 -165.0
Interest paid -5.5 -0.3
Interest received 4.7 0.0
Payment of lease liabilities -1.2 0.0
Transaction of own shares -0.4 -7.1
Employee Share transactions 0.0 -0.1
Dividends paid to the company's shareholders -107.2 -120.4
Dividends paid to non-controlling interests -1.3 -1.6
Net cash flow from financing activities 428.0 29.0
     
Total cash flow over the period -95.4 63.9
Cash and cash equivalents - Beginning of period 419.1 288.3
Non Cash exchange gains/(losses) on cash and cash equivalents 0.6 0.4
Cash and cash equivalents - End of period 324.3 352.6

The figures in this document have not been audited or reviewed by our external auditor.


Q2 2019 Consolidated income statement for Oslo Børs VPS standalone (for information only)

As a reminder, Oslo Børs VPS has been consolidated from 14 June 2019. The Q2 2019 P&L is provided for information only. Please note that June 2019 costs benefits from a positive seasonality effect.

Unaudited, In NOK'000 Q2 2019 Q2 2018 % var
Revenue 272.0 267.3 +1.7%
Listing 55.5 56.4 -1.5%
Trading revenue 32.2 37.1 -13.3%
Cash Trading 27.2 31.3 -13.3%
Derivatives Trading 5.0 5.8 -13.1%
Spot FX Trading - - N/A
Investor Services 2.9 2.3 +22.7%
Advanced Data Services 38.8 37.7 +3.1%
Post-trade 137.5 129.4 +6.3%
Clearing - - N/A
Custody, Settlement and other post-trade 137.5 129.4 +6.3%
Technology Solutions & other revenue 5.1 4.5 +14.0%
Other income - - N/A
Operational expenses excluding D&A -138.7 -135.7 +2.2%
Salaries and employee benefits -76.1 -76.3 -0.2%
Other Operational Expenses -62.5 -59.4 +5.3%
System & Communication -21.4 -20.0 +6.8%
Professional Services -20.8 -18.5 +12.4%
Clearing expense - - N/A
Accommodation -3.5 -6.8 -48.7%
Other Operational Expenses -16.8 -14.0 +20.1%
EBITDA 133.3 131.7 +1.3%
EBITDA margin 49.0% 49.2% -0.2 pts
Depreciation & Amortisation -6.5 -6.7 -3.8%
Operating Profit before Exceptional items 126.8 124.9 +1.5%
Exceptional items - - N/A
Operating Profit 126.8 124.9 +1.5%
Net financing income / (expense) -0.1 1.0 -108.1%
Results from equity investments - - N/A
Profit before income tax 126.7 126.0 +0.6%
Income tax expense -31.3 -32.1 -2.2%
Share of non-controlling interests - - N/A
Profit for the period 95.4 93.9 +1.6%


  Q2 2019 Q2 2018  
       
Nb trading days 62 63  
       
NUMBER OF TRANSACTIONS (Buy and sells) (reported trades included)      
  Q2 2019 Q2 2018 Change %
Total Cash Market * 100,269,398 112,286,632 -10.7%
ADV Cash Market * 1,617,248 1,782,327 -9.3%
       
TRANSACTION VALUE ( € million - Single counted)      
(€m) Q2 2019 Q2 2018 Change %
Total Cash Market * 461,362.81 530,356.36 -13.0%
ADV Cash Market * 7,441.34 8,418.35 -11.6%
* (shares, warrants, trackers, bonds...)      
       
LISTINGS      
  June-19 June-18 Change %
MOM
Number of Issuers on Equities      
EURONEXT ** 1,239 1,291 -4.0%
SMEs 915 954 -4.1%
Number of Listed Securities      
Bonds 42,445 37,774 12.4%
ETFs 1,208 1,073 12.6%
Funds 4,577 5,357 -14.6%
**(Euronext, Euronext Growth and Euronext Access) – Excluding Oslo Børs VPS      
       
Capital raised on Equities on Primary and Secondary Market      
EURONEXT (Euronext, Euronext Growth)      
(€m) Q2 2019 Q2 2018 Change %
Nb New Listings ** 6 12  
Money Raised New Listings incl over allotment 370 1,252 -70.4%
of which Money Raised New Listings 336 1,136 -70.4%
Follow-ons on Equities 12,903 10,645 21.2%
Bonds 316,679 205,621 54.0%
Total Money Raised * 329,951 217,518 51.7%
       
of which SMEs      
(€m) Q2 2019 Q2 2018 Change %
Nb New Listings ** 5 10  
Money Raised New Listings incl over allotment 0 305  -
of which Money Raised New Listings 0 287  -
Follow-ons on Equities 999 1,613 -38.1%
Bonds 347 145 139.7%
Total Money Raised * 1,345 2,063 -34.8%

* included New Listings incl over allotment, Follow-ons on Equities, Corporate Bonds on Euronext Listed Issuers.
**(Euronext, Euronext Growth and Euronext Access)


Derivatives markets activity

  Q2 2019 Q2 2018  
       
Nb trading days 62 63  
       
Volume (in lots)      
  Q2 2019 Q2 2018 Change %
Equity 32,130,156 34,003,558 -5.5%
       
Index 14,438,996 14,191,432 1.7%
Futures 10,127,111 9,743,850 3.9%
Options 4,311,885 4,447,582 -3.1%
       
Individual Equity 17,691,160 19,812,126 -10.7%
Futures 931,740 131,927 >500%
Options 16,759,420 19,680,199 -14.8%
       
Commodity 3,296,014 3,895,678 -15.4%
Futures 3,043,424 3,568,100 -14.7%
Options 252,590 327,578 -22.9%
       
Other 0 0  
Futures 0 0  
Options 0 0  
       
Total Euronext 35,426,170 37,899,236 -6.5%
Total Futures 14,102,275 13,443,877 4.9%
Total Options 21,323,895 24,455,359 -12.8%
       
       
ADV (in lots)      
  Q2 2019 Q2 2018 Change %
Equity 518,228 539,739 -4.0%
       
Index 232,887 225,261 3.4%
Futures 163,341 154,664 5.6%
Options 69,547 70,597 -1.5%
       
Individual Equity 285,341 314,478 -9.3%
Futures 15,028 2,094 >500%
Options 270,313 312,384 -13.5%
       
Commodity 53,162 61,836 -14.0%
Futures 49,087 56,637 -13.3%
Options 4,074 5,200 -21.6%
       
Other 0 0  
Futures 0 0  
Options 0 0  
       
Total Euronext 571,390 601,575 -5.0%
Total Futures 227,456 213,395 6.6%
Total Options 343,934 388,180 -11.4%


Open Interest      
  Jun-19 Jun-18 Change % YOY
Equity 15,111,169 17,176,034 -12.0%
       
Index 1,525,451 1,501,496 1.6%
Futures 746,795 617,666 20.9%
Options 778,656 883,830 -11.9%
       
Individual Equity 13,585,718 15,674,538 -13.3%
Futures 248,036 21,237 >500%
Options 13,337,682 15,653,301 -14.8%
       
Commodity 635,094 742,000 -14.4%
Futures 403,028 463,772 -13.1%
Options 232,066 278,228 -16.6%
       
Other 0 0  
Futures 0 0  
Options 0 0  
       
Total Euronext 15,746,263 17,918,034 -12.1%
Total Futures 1,397,859 1,102,675 26.8%
Total Options 14,348,404 16,815,359 -14.7%

Spot FX Trading

  Q2 2019 Q2 2018  
Nb trading days 65 65  
       
Spot FX VOLUME (in USD millions, single counted)      
  Q2 2019 Q2 2018 Change %
Total Spot FX Market 1,135,016 1,392,878 -18.5%
ADV Spot FX Market* 17,462 21,429 -18.5%

*ADV for Q2 2018 restated due to an error in the number of trading days for Q2 2018 (previously disclosed 64)

*END*




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 
7Volume-related businesses include Cash, Derivatives, Spot FX trading, Clearing, and IPO
8 Non-volume related businesses revenue divided by operating costs (excluding D&A)
9 Formerly commercialized as iBabs
10 Definition in Appendix
11 Excluding Oslo Børs VPS
12Excluding Oslo Børs VPS
13 The T-REX protocol white paper is available at: https://tokeny.com/wp-content/uploads/2018/12/t-rex-whitepaper.pdf
14 Tokenization is the process of converting rights of an asset into a token that can be subdivided, traded and stored on a blockchain system.

15 As announced by Caisse des Dépôts et Consignations on 14 June 2019, as allowed in the current 2017-2019 Reference Shareholders Agreement, Caisse des Dépôts et Consignations has acquired from both Société Générale and ABN AMRO Bank N.V. 700,000 Euronext shares accounting in aggregate for 2% of Euronext’s share capital.

16 Dividends from Euroclear postponed to Q4 2019

 

 

Attachment