Euronext’s diversified business model continues to drive strong topline growth.
Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo and Paris – 25 July 2024 – Euronext, the leading pan-European market infrastructure, today publishes its results for the second quarter 2024.
- Q2 2024 revenue and income was up +12.2% at €412.9 million:– Strong performance of non-volume related revenue representing 58% of total revenueand income (compared to 61% in Q2 2023, reflecting the strong dynamic of trading and clearing in Q2 2024) and covering 153% of underlying operating expenses, excluding D&A[1] (vs. 148% in Q2 2023):
- Custody and Settlement revenue grew to €69.7 million (+9.4%), driven by growing assets under custody, dynamic issuance activities and higher settlement activity;
- Advanced Data Services revenue grew to €60.0 million (+5.4%), driven by continued demand for fixed-income and power trading data, commercial expansion of the analytic products offering and dynamic non-professional usage;
- Listing revenue grew to €58.4 million (+5.9%), driven by the strong performance of Euronext Corporate Services and dynamic debt listing activity. Euronext sustained its leading position for equity listing in Europe and for debt listing globally;
- Technology Solutions reported €25.4 million of revenue (-7.0%), primarily reflecting the termination of double-run connectivity revenues following the migration of Italian markets to Optiq®, passing on synergies to clients.- Trading revenue grew to €142.7 million (+20.7%), driven by good trading dynamics in fixed income and across most asset classes (equity, power, commodity derivatives, and FX). Fixed income trading revenue reached another record at €35.6 million (+40.7%), driven by strong volatility.- Clearing revenue grew to €39.2 million (+33.2%), thanks to the additional business captured by Euronext Clearing following its expansion for European equities in Q4 2023. The activity was supported by dynamic fixed income clearing activity. Net treasury income for Euronext Clearing was stable at €13.8 million.
- Underlying operating expenses excluding D&A1 were €156.1 million (+2.7%), in line with the 2024 underlying cost guidance.
- Adjusted EBITDA1 was €256.8 million (+18.8%) and adjusted EBITDA margin was 62.2% (+3.5pts).
- Adjusted net income1 was €165.2 million (+15.6%) and adjusted EPS was €1.59 (+19.0%).
- Reported net income was €141.7 million (+18.2%).
- Net debt to EBITDA[2] was at 1.8x at the end of June 2024, impacted by the dividend payment and closing of the GRSS acquisition.
- Key figures for the second quarter of 2024:
| In €m, unless stated otherwise | Q2 2024 | Q2 2023 | % var | % var l-f-l[3] |
| Revenue and income | 412.9 | 368.1 | +12.2% | +11.9% |
| Underlying operational expenses excluding D&A2 | (156.1) | (152.0) | +2.7% | +2.4% |
| Adjusted EBITDA | 256.8 | 216.1 | +18.8% | +18.5% |
| Adjusted EBITDA margin | 62.2% | 58.7% | +3.5pts | +3.5pts |
| Net income, share of the parent company shareholders | 141.7 | 120.0 | +18.2% | |
| Adjusted net income, share of the parent company shareholders | 165.2 | 142.9 | +15.6% | |
| Adjusted EPS (basic, in€) (share count differs between the two periods) | 1.59 | 1.34 | +19.0% | |
| Reported EPS (basic, in€) (share count differs between the two periods) | 1.37 | 1.12 | +21.7% | |
| Adjusted EPS (diluted, in€) (share count differs between the two periods) | 1.59 | 1.34 | +19.0% | |
| Reported EPS (diluted, in€) (share count differs between the two periods) | 1.36 | 1.12 | +21.6% |
Entering the last phase of the Borsa Italiana Group integration:
_ €84.2 million of cumulated run-rate annual EBITDA synergies were achieved at end of June 2024.
€5.2 million run-rate annual EBITDA synergies were delivered in Q2 2024.
_ €109.1 millioncumulated implementation costs have been incurred since the acquisition of the Borsa Italiana Group, of which €3.2 million were incurred during Q2 2024. Euronext now expects the total cumulated implementation costs until the end of 2024 to reduce to €130 million. This is €20 million lower than the €150 million guided in May 2022, and €30 million lower than the €160 million announced in November 2021.
- Euronext has successfully concluded the migration of the MTS Production Data Centre to Bergamo. This strategic move enables customers to access MTS Markets’ Trading and Data services through the same facilities as all Euronext trading venues, thereby enhancing efficiencies in European capital markets. Members furthermore benefit from reduced latency, maximum safety and a reduction of their carbon footprint thanks to the facility’s 100% use of renewable energy.
- Euronext successfully migrated the clearing of its commodity derivatives to Euronext Clearing in July 2024, completing the first phase of its derivatives clearing migration. The second and final phase, the migration of financial derivatives, will take place in September 2024.
- Continued bolt-on acquisitions to diversify Euronext’s business model
On 3 June 2024, Euronext completed the acquisition of the leading provider of services to benchmark administrators, Global Rate Set Systems (GRSS), positioning the Group as a leading player in the calculation and administration of Interbank Offered Rate (IBOR) indices.
- Pioneering with the launch of the Euronext Wireless Network
In July 2024, Euronext launched its new microwave service (EWiN), becoming the first exchange in Europe to offer “Plug & Play” order entry in London via microwave technology. This service is set to significantly enhance the speed of order transmission, offering unparalleled latency improvements.
- Stéphane Boujnah, Chief Executive Officer and Chairman of the Managing Board of Euronext, said:
“In the second quarter of 2024, Euronext reached record revenue and income of €412.9 million. Strong organic growth in our non-volume related businesses, combined with dynamic trading activities across asset classes drove the Group’s revenue growth to +12.2%. Combined with continued cost control, this record performance led to a +18.8% increase in adjusted EBITDA, to €256.8 million, and to a 62.2% adjusted EBITDA margin. As a result of this strong performance, our reported net profit grew +18.2% to €141.7 million and adjusted net profit grew +15.6% to €165.2 million. This represents an adjusted EPS of €1.59, increasing +19.0% compared to last year.
Over the past few months, we pursued the diversification of our business model with the closing of the acquisition of GRSS, a leading benchmark administrator, in June 2024. This bolt-on acquisition will further strengthen Euronext’s non-volume related revenue growth. We also continued to innovate with the launch of the Euronext Wireless Network, our new microwave service. With this new offering, we became the first exchange in Europe to offer “Plug & Play” order entry in London via microwave technology, which will significantly enhance the speed of order transmission and offer unparalleled improvements in latency.
We are now delivering on the final milestone of the Borsa Italiana Group integration. On 15 July 2024, we successfully completed the first phase of the derivatives clearing migration with the migration of our commodity derivatives clearing activities to Euronext Clearing. Financial derivatives will follow in September 2024. With this strategic expansion of our clearing house, Euronext is creating an integrated market infrastructure that further contributes to the defragmentation of the European post-trade landscape, and serves as a catalyst for innovation for its clients. This milestone will also be the final step in reaching the targeted €115 million of run-rate EBITDA synergies by the end of 2024.”