Pan-European exchange operator Euronext announced strong results for Q1-2020, alongside a slew of other healthy figures we have seen from both retail and institutional focused platforms – with most of the action occurring during the last five weeks of the quarter.
Overall, Revenue at Euronext came it at €236.8 million for Q1, +55.2% as compared to Q1-2019. Driving the rise was a Trading revenue increase to €111.8 million (+73.3%). Euronext saw double digit growth across all asset classes, and Nord Pool power trading contributing €7.2 million. Like-for-like trading revenue increased +54.9% in what the company said was a highly volatile environment.
Post-trade revenue doubled to €39.2 million (+109.3%), driven by the consolidation of the Norwegian VPS CSD revenue and higher clearing revenue. Like-for-like, post-trade revenue increased +33.0%.
Euronext saw strong growth in listing revenue to €35.4 million (+26.7%), driven by the consolidation of Oslo Børs VPS and the solid performance of Corporate Services at €6.8 million (+28.8% like-for-like). Listing revenue increased +5.4% like-for-like.
Advanced data services revenue increased to €34.9 million (+13.2%), as a result of the consolidation of Oslo Børs VPS and Nord Pool, and of the resilient performance of the core business. Like-for-like, advanced data services revenue increased +0.9%.
Contribution from Nord Pool of €9.9 million for 2.5 months of consolidation.
Group non-volume related revenue accounted for 44% of Q1 2020 total revenue (vs. 47% in Q1 2019), and covered 119% of operating expenses excluding depreciation & amortisation (vs. 114% in Q1 2019).
EBITDA came in at €150.0 million (+68.1%), with EBITDA margin at 63.4% (+4.9pts). Group operating costs excluding D&A were up +€23.4 million to €86.7 million as a result of the consolidation of costs from acquired businesses and higher clearing expenses
On the bottom line, Euronext reported net income share of the Group at €96.1 million (+71.2%). Adjusted EPS came in at €1.44 (+65.3%).
Euronext operates regulated and transparent equity and derivatives markets and is the largest centre for debt and funds listings in the world. Its total product offering includes Equities, FX, Exchange Traded Funds, Warrants & Certificates, Bonds, Derivatives, Commodities and Indices. Euronext also leverages its expertise in running markets by providing technology and managed services to third parties. In addition to its main regulated market, Euronext also operates Euronext Growth™ and Euronext Access™, simplifying access to listing for SMEs.
Stéphane Boujnah, Chief Executive Officer and Chairman of the Managing Board of Euronext, said about Q1:
Euronext delivered a strong performance in the first quarter of 2020 with growth across all business lines, translating into significant increase in EBITDA and adjusted EPS. This performance reflects strong trading volumes in all asset classes and continued benefits from our diversification strategy. In this highly volatile environment, cash trading volumes increased by +53.2%. The Group reported a cash trading market share at 69.9% which highlights the important role of transparent market venues ensuring fair and orderly markets under extreme market conditions.
This quarter’s solid performance demonstrates the resilience of our operating model and validates the investments over the past four years in developing our state-of-the-art proprietary trading platform Optiq®. In the current times, we are focused on ensuring the continuity of operations and the health and well-being of our employees, as well as supporting our communities.
In these market conditions, we continued to advance on our ‘Let’s Grow Together 2022’ strategic plan, with the acquisition of VP Securities, the Danish CSD, that will position Euronext both as a leading CSD operator in Europe, and as a leading market infrastructure in the Nordic region. This acquisition will allow us to pursue the diversification of our topline and represents a new milestone towards our ambition of building the leading pan-European market infrastructure .