(AOF) – Euronext revealed improved operating results in the third quarter. Over this period, the Pan-European Stock Exchange recorded a 119.6% jump in its net profit to 166.5 million euros. The company notably benefited from a capital gain of 41.6 million euros following the sale of the 11.1% stake in LCH SA. Its adjusted Ebitda increased by 7% to 213.7 million euros, showing a margin of 59.3%, up 2.3 points in published data and 1.6 points on a comparable basis.
Adjusted costs reached 146.5 million euros, up 0.1% like-for-like. Euronext’s consolidated turnover reached 360.2 million euros, an increase of 19.5%. On a like-for-like basis, it increased by 21.3%.
47.6 million euros of cumulative annual Ebitda synergies have been realized since the acquisition of the Borsa Italiana group in April 2021, of which 3.4 million euros were realized in the third quarter of 2023.
Adjusted costs for the year 2023 are expected to be lower than the forecast of 630 million euros.
AOF – LEARN MORE
Key points
– First European financial center created in 2000, present in 23 states, bringing together the regulated markets of Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo and Paris, as well as several platforms;
– Revenues of €1.5 billion, distributed between transactions for 35%, custody & settlement for 17%, listing for 15%, advanced data services for 14% and clearing for 8%;
– Growth model based on: strengthening the value chain, expanding the platform offering, expanding the offering of quotes, innovative products and services, strengthening positions in sustainable finance and pursuing external growth;
– Open capital of which 23.81% held by reference shareholders -ABN Amro, Caisse des Dépôts, Cassa Depositi e Prestiti, Euroclear, Federale participatie and Intesa San Paolo;
– Company incorporated under Dutch law, Piero Novelli chairing the board of directors of 10 members, Stéphane Boujnah being general manager;
– Maintained financial strength after the purchase of Borsa Italia, with leverage reduced to 2.4, shareholders’ equity of €4 billion and liquidity of €1.5 billion.
Challenges
– “Growth for impact 2024” strategy:
– annual growth of 3-4% in turnover and 5-6% in operating profit,
– maintenance of the dividend policy (rate of 50%) and investments (3-5% of turnover),
– synergies with the Milan Stock Exchange increased to €115 million by 2024;
– 4 priorities for the innovation strategy -digitalization, deployment of information sharing and co-design, strengthening the efficiency of central technologies and integration of innovations such as tokenization, tailor-made trading models, etc.;
– Environmental strategy on 2 pillars – reduction of the carbon footprint, validated by the SBTi and the objectives identified then transition to sustainable finance:
– reduction of the direct carbon footprint by 75% in 2030 (vs 2020) and 72% in 2027 for suppliers,
– expansion of the range of ESG indices,
– strengthening the European No. 1 position in the offering of ESG investment vehicles – ETFs, investment funds, “green” bonds, derivatives, etc.,
– support for issuers in their ESG transition;
– Maintaining competitive advantages – unique platform for transactions on European regulated markets and service offering covering all needs of financial market participants;
– High capacity for innovation, operating margin higher than that of its European competitors and speed of execution of integrations.
Challenges
– Weight and volatility of European regulation;
– After the migration of data centers in Bergamo and then that of cash & derivatives to the Optiq trading platform, expansion of the offering of clearing solutions to all Euronext European markets by the end of 2024 and deployment of the offer around crypto-assets;
– Integration of Spafid’s corporate services activities and Nexi’s technological assets;
– After record revenues, 2023 targets
– €630M in operational costs, fully offsetting, with synergies, the cost of inflation,
– maintenance of at least 63% of the share of the European stock market transactions market;
– 2022 dividend of €2.22
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