Euronext results grow 17.3% to 513.6 million in 2023

Euronext presented its results for 2023. The reported net profit was €513.6 million (+17.3%), reflecting €53.0 million of capital gains, based on a positive interest rate environment and on a favorable comparison in 2022.

The reported earnings per share amounted to €4.84, representing an increase of 18.0%.

“A dividend of 256.8 million euros will be proposed during the annual general meeting on May 15, 2024,” according to the platform that runs the Lisbon Stock Exchange. This value represents 50% of the net income recorded in 2023, in line with Euronext's dividend policy.

“Based on the number of shares outstanding at the end of 2023, this represents a dividend of €2.48 per share (versus €2.22 per share last year),” Euronext says.

Total adjusted EBITDA for the year was €864.7 million, representing a +0.4% increase compared to 2022. This represents an adjusted EBITDA margin of 58.6%, which is stable compared In 2022.

On a similar basis, 2023 Adjusted EBITDA increased by +0.4% to €874.7 million, and Adjusted EBITDA margin was 59.5%, down -0.7 points compared to 2022.

Euronext reported better-than-expected costs of €610.0 million, less than 1% on last year. This compares with revised guidance of €618 million and initial 2023 cost guidance provided a year ago of €630 million.

“This good cost performance, despite inflationary pressures, resulted from cost control and was also supported by a one-off provision release of €6.3 million and a positive impact of €11.4 million from the depreciation of the Norwegian currency. This fully offsets inflationary pressures and costs incurred in supporting New growth initiatives.

The platform that runs the Lisbon Stock Exchange reveals that it “delivered strong results demonstrating the benefits of Euronext’s diversified business model.”

“Costs for 2023 were better than the revised guidance. Accretive synergies of €74 million were achieved, which is above the interim 2023 guidance of €70 million. Full-year 2023 revenue and income increased by +3.9% to €1,474.7 million (+0.5% Compared to revenue and core income for 2022).

“This performance was based, in particular, on non-volume and fixed income trading activities, which recorded double-digit growth across all asset classes, resulting in a +15.6% increase in revenue,” Euronext says.

Furthermore, he adds, “The energy trading activity also had a record year, with a revenue increase of around +14.5%, mainly based on the intraday energy market, where volumes doubled compared to 2022.”

Non-trading volume revenues represented 60% of the Group's core revenues in 2023, an increase of 9.7% compared to core non-trading volume revenues in 2022, driven by technology services (services) and advanced data services.

The successful relocation of our main data center to Bergamo has brought benefits to our colocation offering, increasing our technology solutions business, which grew by approximately +10% in 2023.

The Advanced Data Services business posted a +6.0% increase in revenue based on demand for data and data analytics products.

 In terms of post-trade business, custody and settlement increased by 5.5% in constant currency, driven by increased assets under custody, improvement in revenue collection and expansion of services. Clearing revenues remained stable despite lower equity and derivatives volumes, thanks to the diversification of clearing flows and the acquisition of additional Euronext Clearing business following Euronext Clearing's expansion into spot markets across Europe in November 2023. Globally, Euronext is now a leading Clearing. The best post-trade infrastructure operator in Europe.

In terms of stock exchange admissions, in 2023, Euronext “strengthened its position as the main venue for stock listings in Europe, attracting 64 new companies, 13 of which are international.”

The platform says it “remains the primary venue for debt quotes worldwide, and is now the marketplace for more than 55,000 bonds.”

In 2023, Euronext hosted 494 new ESG bond issuances, an increase of more than +20% compared to 2022.

Euronext highlights that it continues to be the reference spot trading platform in Europe, “providing the best liquidity”.

“Revenues have remained resilient thanks to the migration of spot markets on the Italian Stock Exchange to our Optiq trading platform and effective management of income and market share,” he adds.

Euronext says it is on track to achieve the last important milestones of the “Growth for Impact 2024” strategic plan this year.

The transition of Italian derivatives trading to Optiq® in Q1 2024 and the expansion of Euronext Clearing for Euronext-listed derivatives and commodities by Q3 2024 “will contribute significantly to the planned EUR 115 million synergies by the end.” For the year 2024.”

“Following the successful opening of the test environment for Euronext’s new dark trading platform at the end of January 2024, Euronext confirms the launch of the Dark, Mid-Point and Sweep functionality in the first quarter of 2024,” the company says.

“The entire Euronext ecosystem of trading members, local brokers, market makers and global banks will benefit from zero latency in indexing to the Euronext midpoint, and zero latency to ‘go from dark’ to ‘light’ in Euronext shares,” the report said. NB.

For this year, Euronext says it will continue its cost control policy and assumes that savings and synergies will offset inflation and higher costs in 2023. As a result, Euronext expects its core expenses for 2024, excluding D&A (depreciation and amortisation), to be around €625 million, of which About 10 million euros to finance growth projects and exclude the possible impact of foreign exchange (Forex) throughout the year.