Euronext has reported €68.3 million in cash equities revenue over Q3, more than double competitor Deutsche Börse’s €30.8 million. Overall revenue and income rose by 10% year-on-year (YoY) to €396.3 million.
According to Global Trading’s exchanges survey earlier this year, Euronext’s equity trading volume (€1,223.65 billion) more than doubles Xetra’s €600 billion. Both have grown in tandem over the quarter in cash equities trading revenue YoY, Euronext by 6.1% and Deutsche Börse by 4%, although a slight drop can be seen on a quarterly basis.
Trading revenue at Euronext was up 15.7% to €136.9 million, which the group attributed to strong performances in fixed income and FX trading. The former saw €37 million in revenue, up 45% YoY, while the latter rose by 27.6% to €8.2 million. Cash trading revenue of €68.3 million was reported over the quarter, up 6.1%. This was the result of efficient yield management and higher volumes, the firm stated.
Reflecting on the 10 years since Euronext went public, CEO and chairman of the managing board Stéphane Boujnah affirmed that the company has exceeded the goals it set for 2024 by €300 million and seen a 470% share price increase since launch.
Euronext will launch a share buyback programme starting Monday 11 November, active for 12 months and with a maximum of €300 million. “This reflects our confidence as we look ahead,” Boujnah told the press conference, adding that “conditions are ideal” to implement such a programme.
“This programme is enabled by Euronext’s strong cash generation capabilities and demonstrates Euronext’s rigorous capital allocation strategy,” the exchange confirmed.
This September, Euronext completed its migration of financial derivatives markets to Euronext Clearing, officially ending its contractual relationship with LCH. It also completed its integration of the Borsa Italiana Group, closing a more than three-year project. The cost of the latter has been €48.2 million lower than the €160 million guidance figure announced in November 2021, the group stated.
Derivatives trading revenue and income was down 3.4% YoY to €13 million at Euronext. Deutsche Börse, by contrast, reported 11% growth to €316 million. Over the next three years, Euronext intends to expand its FICC trading and clearing franchise to further diversify its business. In Q3, fixed income trading revenue was up 45.5% to €37 million. MTS, the company’s fixed income trading platform, has grown fourfold since 2021, Boujnah explained. “We are going to continue to develop our footprint in a material manner.”
The group also aims to grow adjusted EBITDA, revenue and income by more than 5% each year, with CAPEX contributing between 4% and 6% of total revenue. Beyond financial targets, as part of its ‘Innovate for Growth 2027’ initiative the group plans to accelerate growth in non-volume business. “We want to do with the CSDs what we did for trading,” Boujnah stated during the press conference, aiming to reduce fragmentation and become European the CSD of choice.
“In 2027, Euronext will remain a highly profitable company that will have continued to generate cash. It will be highly integrated. The company will be larger, more diversified, have more interactions with more people, be more relevant to more market participants, and have been important in the delivery of the Capital Markets Union and the European Savings and Investments Union,” Boujnah concluded.
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