Euronext publishes third quarter 2017 results

Results driven by volume growth and the contribution from new acquisitions

Amsterdam, Brussels, Lisbon, London and Paris – 8 November 2017 - Today Euronext announced its results for the third quarter of 2017.

Strong revenue growth in Q3 2017, up +14.1%[1] compared to Q3 2016, to €128.7m, mainly due to:
- Improvement of volumes in a stabilised macro environment:
  - Cash average daily volume (ADV) up +19.5% in Q3 2017 compared to Q3 2016, to €6.9bn
  - Market share of cash equities strengthened to 65.2%, with robust yield
  - Improved competitive landscape for Dutch derivatives with equity derivatives ADV up +20.8%
- Strong listing activity over the quarter, with increases in IPO (+68.6%) and follow-on (+38.2%) revenue
- Deployment of Agility for Growth initiatives (€2.9m of revenue): development of Corporate Services activity through the acquisition of iBabs in July 2017
- Positive impact of the acquisition of FastMatch (€2.9m of revenue[2]), with spot FX ADV up +49.5% to $18.3bn
Cumulated costs savings since 1 April 2016 of €11.9m at the end of Q3 2017, slightly down compared to Q2 2017 due to the costs related to Optiq® and MiFID II projects
Growth of EBITDA, up +13.3%, to €69.5m (EBITDA margin of 53.9%, -0.5 points vs. Q3 2016)
Net profit stable (+0.6%) at €38.3m, with good operating performance offset by exceptional items of -€9.7m, mainly related to break-up fee, one-off pension costs and advisory costs
Signing of a 10-year agreement with LCH SA for financial and commodities derivatives clearing, and the swap of a 2.3% minority stake in LCH Group with a 11.1% stake with a pre-emption right[3] in LCH SA (to be closed in the next few months)

Stéphane Boujnah, CEO and Chairman of the Managing Board of Euronext NV., said:

“Euronext’s results for the third quarter of 2017 were driven by the improvement of volume in a stabilised macro environment and by the first contributions of our new acquisitions. We ensured a +13.3% growth in EBITDA this quarter, while we pursued major projects such as MiFID II and Optiq®. This quarter was marked by the deployment of our Agility for Growth strategic plan, through the acquisition of iBabs in July, and by the closing of the acquisition of FastMatch in August. Another major milestone was met in August when we secured the renewal of a 10-year agreement for derivatives clearing with LCH SA, as well as a 11.1% stake and a pre-emption right in this company, ensuring a long-term and improved value proposition for our customers and investors.”

[1] Unless stated otherwise, percentages compare Q3 2017 data to Q3 2016 data

[2] FastMatch is consolidated since 14 August 2017 (1.6 months over Q3 2017)

[3]Swap without cash settlement, subject to regulatory approval. Please refer to “Highlights of the period” paragraph

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About Euronext
Euronext is the leading pan-European market infrastructure, connecting European economies to global capital markets, to accelerate innovation and sustainable growth. It operates regulated exchanges in Belgium, France, Ireland, Italy, the Netherlands, Norway and Portugal. With nearly 1,900 listed issuers and around €6.3 trillion in market capitalisation as of end September 2024, it has an unmatched blue-chip franchise and a strong diverse domestic and international client base. Euronext operates regulated and transparent equity and derivatives markets, one of Europe’s leading electronic fixed income trading markets and is the largest centre for debt and funds listings in the world. Its total product offering includes Equities, FX, Exchange Traded Funds, Warrants & Certificates, Bonds, Derivatives, Commodities and Indices. The Group provides a multi-asset clearing house through Euronext Clearing, and custody and settlement services through Euronext Securities central securities depositories in Denmark, Italy, Norway and Portugal. Euronext also leverages its expertise in running markets by providing technology and managed services to third parties. In addition to its main regulated market, it also operates a number of junior markets, simplifying access to listing for SMEs.
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