Strong start of the year with record topline driven by strong organic growth of Euronext’s diversified
business model.
Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo and Paris – 14 May 2024 – Euronext, the leading panEuropean market infrastructure, today publishes its results for the first quarter 2024.
◼ Q1 2024 revenue and income was up +8.0% at €401.9 million:
- Strong performance of non-volume related revenue representing 58% of total revenue and income
(stable compared to Q1 2023) and covering 155% of underlying operating expenses, excluding D&A1
(vs.
141% in Q1 2023):
Custody and Settlement revenue grew to €67.8 million (+6.0%), driven by growing assets
under custody, higher issuance activities and continued expansion of the services business;
Advanced Data Services revenue grew to €59.4 million (+5.5%), driven by dynamic nonprofessional usage, continued demand for fixed-income and power trading data and
continued demand for analytic products;
Listing revenue grew to €57.7 million (+5.5%), driven by the strong performance of Euronext
Corporate Services and dynamic debt listing activity. Euronext sustained its leading position
for equity listing in Europe, recording 45% of new equity listings with 10 listings, and as the
leading venue for debt listing globally;
Technology Solutions reported €26.7 million of revenue (-3.3%). - Clearing revenue grew to €37.0 million (+23.1%), thanks to the additional business captured by
Euronext Clearing following its expansion for European equities on 27 November 2023 and dynamic
commodities clearing revenue, despite softer financial derivatives clearing volumes. Net treasury
income for Euronext Clearing was €11.7 million (+57.0%). - Trading revenue grew to€138.4 million (+7.4%), driven by record results in fixed income (€35.2 million,
+34.5%) and power trading (€12.2 million, +23.7%). This strong performance was achieved despite the
softer environment for cash trading (€70.6 million, -1.6%) and derivatives trading (€13.4 million,
-10.2%) .
◼ Underlying operating expenses excluding D&A
1 were €150.7 million (-2.0%), thanks to continued cost
control and some positive one-off releases.
◼ Adjusted EBITDA1 was €251.3 million (+15.0%) and adjusted EBITDA margin was 62.5% (+3.8 pts).
◼ Adjusted net income1 was €164.2 million (+11.7%) and adjusted EPS was €1.58 (+15.0%).
◼ Reported net income was €139.7 million (+44.8%), reflecting the positive base effect of the €36.0 million
pre-tax non-underlying provision related to the termination fee of the clearing agreement in Q1 2023.
◼ Net debt to reported EBITDA was at 1.7x at the end of March 2024 and net debt to adjusted EBITDA at
1.6x. S&P rating was upgraded in May 2024 to BBB+ Positive Outlook.
◼ Key figures for the first quarter of 2024:
In €m, unless stated otherwise Q1 2024 Q1 2023 % var % var l-f-l
2
Revenue and income 401.9 372.3 +8.0% +8.5%
Underlying operational expenses excluding D&A2
(150.7) (153.8) -2.0% -1.6%
Adjusted EBITDA 251.3 218.5 +15.0% +15.4%
Adjusted EBITDA margin 62.5% 58.7% +3.8pts +3.8pts
Net income, share of the parent company shareholders 139.7 96.5 +44.8%
Adjusted net income, share of the parent company shareholders 164.2 147.1 +11.7%
Adjusted EPS (basic, in€) (share count differs between the two periods) 1.58 1.38 +15.0%
Reported EPS (basic, in€) (share count differs between the two periods) 1.35 0.90 +49.1%
Adjusted EPS (diluted, in€) (share count differs between the two periods) 1.58 1.37 +14.8%
Reported EPS (diluted, in€) (share count differs between the two periods) 1.34 0.90 +48.9%
1 Definition in Appendix – adjusted for non-underlying operating expenses excluding D&A and non-underlying revenue and income.
2 Like-for-like basis at constant currency
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◼ Last year of the Borsa Italiana Group integration: - €79.0 million of cumulated run-rate annual EBITDA synergies were achieved at end of March 2024.
€5.0 million run-rate annual EBITDA synergies were delivered in Q1 2024. - €105.8 million cumulated implementation costs were incurred since the acquisition of the Borsa
Italiana Group, of which €3.0 million were incurred during Q1 2024. - Euronext completed the migration of Italian derivatives trading to Optiq®, the third and final phase in
the migration process of Borsa Italiana’s markets onto Euronext’s state-of-the-art, proprietary trading
platform Optiq® on 25 March 2024. This migration was the last in the ambitious integration plan of
Italian markets onto the Euronext single trading platform, and was completed less than three years
after the acquisition of the Borsa Italiana Group.
◼ Acquisition of GRSS:
Euronext announced on 29 March 2024 that it has entered into an agreement to acquire 75% of the share capital
of Global Rate Set Systems (GRSS).
GRSS is a leading and highly respected provider of services to benchmark administrators. GRSS is a missioncritical service provider to the benchmark administrators that notably produce three of Europe’s critical
interest rate benchmarks: EURIBOR®, STIBOR® and NIBOR®.
The acquisition of GRSS contributes to the growth of Euronext’s fixed and subscription-based revenue. This
acquisition further diversifies and strengthens Euronext’s index franchise, positioning the Group as a leading
player for calculating and administrating Interbank Offered Rate (IBOR) indices. In partnership with GRSS
management and its founder, Euronext aims to reinforce the positioning of GRSS to become the go-to provider
in the contributed data and indices space, leveraging on Euronext’s global leadership and recognition.
◼ Continued innovation in trading with the successful launch of Euronext Mid-Point Match offering dark,
mid-point and sweep functionalities:
In April 2024, Euronext announced the successful launch of Euronext Mid-Point Match across all its European
markets, its advanced suite of dark, mid-point and sweep functionalities embedded within Euronext’s Central
Order Book. These enhancements allow trading members and buy-side firms to trade at the real mid-point,
without incurring implicit latency costs, to access increased liquidity, while tapping into Euronext’s unique pool
of liquidity fostered by local brokers and investors.
◼ Stéphane Boujnah, Chief Executive Officer and Chairman of the Managing Board of Euronext, said:
“In the first quarter of 2024, Euronext reached record revenue and income of €401.9 million. Strong organic growth
in our non-volume related businesses, combined with record quarter in fixed income and power trading and
double-digit growth in our post-trade activities, drove the Group revenue’s growth to +8.0%.
Combined with our trademark cost discipline in an inflationary environment, this record performance led to a
+15.0% increase in adjusted EBITDA, to €251.3 million, and to a 62.5% adjusted EBITDA margin.
Our reported net profit grew +44.8% to €139.7 million as a result of this strong performance and of the positive
base effect of the provision related to the termination fee of the clearing agreement in Q1 2023. Adjusted net profit
grew +11.7% to €164.2 million, and adjusted EPS reached €1.58, representing a +15.0% increase from last year.
We continued to work on the delivery of our ‘Growth for Impact 2024’ strategic plan and we reached €79 million of
cumulated run-rate EBITDA synergies in relation with the acquisition of the Borsa Italiana Group at the end of the
first quarter of 2024. We have successfully completed in March the migration of Italian derivatives trading to
Optiq®, the third and final phase in the migration process of Borsa Italiana’s markets onto Euronext’s proprietary
trading platform. The final step of the integration will be delivered in the third quarter of 2024 when we will expand
the operations of Euronext Clearing to Euronext European listed derivatives to complete our presence on the
entire trading value chain. This milestone will be the final step to reaching the targeted €115 million of run-rate
EBITDA synergies by the end of 2024.
We strengthened and broadened our data and indices offering with the acquisition of Global Rate Set Systems
(GRSS). GRSS is a leading provider of services to benchmark administrators and has a strong track record of
continued revenue growth and high-quality service. We are glad to welcome the GRSS teams, to work together to
take GRSS to the next step and further globally expand Euronext’s index capabilities. Meanwhile we continue to
work actively on the preparation of our 2024 Capital Market Day that will be take place on 8 November 2024 in
Paris.”