Euronext has reported “solid” Q2 2023 earnings thanks in part to “strong revenue” of €25.3 million in fixed income trading, a 1.4% increase on Q2 2022.
Stéphane Boujnah, CEO and chair of the firm’s managing board, said Euronext’s Q2 2023 results demonstrate the strength of its diversification strategy.
“Euronext’s revenue remains robust, reaching €368.1 million, stable at current currencies. This performance results from strong organic growth in the advanced data and technology businesses.”
The firm’s power trading revenue grew to €8.6 million (+24.7% on Q2 2022) resulting from strong momentum in the European intraday electricity market and improved revenue capture.
Cash equity market share and revenue capture improved, partially offsetting a lower volatility environment for equity trading and clearing activities, compared to Q2 2022 with cash trading revenue at €65.2 million (-13.3% against Q2 2022).
The firm has also announced the launch on Monday 31 July of a share repo programme for a maximum amount of €200 million.
“This programme is enabled by our strong cash generation capabilities and demonstrates our rigorous capital allocation strategy. This share repurchase programme will not change our deleveraging path nor our dividend policy and will preserve financial flexibility to capture market opportunities,” Boujnah said.
The European expansion of Euronext clearing is also under way, with the extension of Euronext Clearing for the clearing of equities set for Q4 2023, and derivatives in Q3 2024.
“Combined with our continued best-in-class cost discipline, our efforts led to an EBITDA margin of 58.7%, and reported profit grew to €120.0 million,” Boujnah added.
Throughout Q2 2023, Euronext said it remained the leading trading venue in Europe, consolidating its market share and capturing value in a low volatility environment. Cash equity market share increased over the quarter to 65.4%, and revenue capture reached 0.53bps. “This reflects, among other initiatives, the immediate benefits of the migration of Italian cash markets to Optiq,” Boujnah said.
Migrations of the remaining Italian cash markets are set to complete this year, and Italian derivatives markets in early 2024. “These migrations will materially contribute to the delivery of targeted synergies as soon as Q4 2023,” Boujnah added.
©Markets Media Europe 2023
