Euronext has reported an increase in revenue to EUR150.9 million (+17.2 per cent), and an increase in listing revenue of EUR27.8 million (+37.6 per cent) for Q3 2018, driven, it says, by the consolidation of Euronext Dublin and incremental contribution from Corporate services.
Euronext has 1,300 listed issuers across Europe.
Cash trading revenue was at EUR48.5 million (+9.2 per cent), thanks to a resilient market share, at 65.7 per cent, effective yield management, at 0.52bps, and improved volumes (Cash ADV at EUR7.2bn, (+4.8 per cent)); market data and indices revenue were at EUR29.4 million (+16.7 per cent).
The Group’s revenue diversification initiatives have shown Euronext Dublin contributing EUR8.1 million, FastMatch EUR5.4 million and selected growth initiatives EUR4.4 million.
The average daily transaction value of ETFs on the electronic order book was EUR201 million over Q3 2018, down -4.9 per cent compared to Q3 2017, impacted by the persisting low volatility. The total number of ETFs listed on Euronext was 1,125 at the end of September 2018.
The exchange reports that core business costs (excluding D&A) were down (-8.2 per cent) while Group costs up (+6.5 per cent) mainly due to the perimeter effect (Euronext Dublin and FastMatch). EBITDA increased to EUR87.8 million (+26.4 per cent), with a 58.2 per cent margin (+4.2pts).
The exchange reports growth in EPS (basic) to EUR0.73 (+31.6 per cent). Adjusted EPS was at EUR0.85[2] (+31.0 per cent).
The net income, share of the Group, at EUR50.5 million was driven by strong operating performance, cost discipline and impacted by EUR8.8 million of exceptional items.
The exchange reveals performance on a comparable accounting basis: excluding IFRS 15 impact, Q3 2018 revenue would have been EUR146.7 million (+13.9 per cent), listing revenue EUR23.5 million (+16.5 per cent), EBITDA EUR83.5 million (+20.2 per cent) and EPS EUR0.68 (+23.5 per cent).
The exchange writes that the Euronext Synapse MTF and Euronext family of Indices in partnership with Morningstar initiatives is no longer expected to contribute for EUR20 million of incremental revenue by 2019.
Stéphane Boujnah (pictured), Chief Executive Officer and Chairman of the Managing Board of Euronext, says: “Euronext delivered in Q3 2018 strong results, driven by growth in all its business lines. Euronext has kept a strong market share on its cash trading business, at 65.7 per cent, along with an effective yield management. Since the beginning of the year, Euronext has diversified, consistently strengthened its position across all asset class traded, as well in non-trading activities, and delivered key milestones of our 2019 objectives for the core business. Thanks to this good performance, Group EBITDA margin is above 58 per cent for the first nine months of 2018.
“We are proud to announce that, within the scope of our Agility for Growth strategic plan, Euronext EBITDA margin over the last 12 reached for the first time, and one year in advance, the 61 per cent level of our 61 to 63 per cent 2019 EBITDA margin target. In addition, the continued focus on costs reduction allowed us to reach the 2019 target one year in advance, with EUR24 million of cost savings on the core business achieved vs. EUR22 million targeted, while incurring less than half of the expected restructuring costs.”
