Spot FX trading generates revenues of €5.8M for Euronext in Q3 2020
Euronext NV (EPA:ENX) today posted its financial report for the third quarter of 2020, with overall revenues marking a rise from a year earlier but spot FX trading revenues registering a drop.
Spot FX trading activity on the Euronext FX (formerly known as Fastmatch) spot foreign exchange market recorded average daily volumes of $19.3 billion in the third quarter of 2020, down 0.3% from the result of $19.4 billion registered in the third quarter of 2019, resulting from an improved market share in a less volatile environment.
As a result, spot FX trading generated €5.8 million of revenue in the third quarter of 2020, down 2.4% compared to €6 million in the year-ago period.
On a like-for-like basis at constant currencies, revenue from spot FX trading was up 2.6% from a year earlier.
Across all segments, in the third quarter of 2020, Euronext consolidated revenue increased to €204.8 million, up 12.7% from the equivalent quarter in 2019, primarily resulting from the consolidation of Nord Pool (from 15 January 2020) and VP Securities (from 4 August 2020) and from a robust core business.
On a like-for-like basis (excluding the consolidation of Nord Pool, Ticker, 3Sens, OPCVM360 and VP Securities in Q3 2020) and at constant currencies, Euronext consolidated revenue was up 3.4% in the third quarter of 2020, at €185.6 million.
Operational expenses excluding depreciation & amortisation increased to €87.1 million, up 18.0%, i.e. by €13.3 million, as a result of the consolidation of the costs from VP Securities, Nord Pool, OPCVM360, Ticker and 3Sens for €12.3 million. On a like-for-like basis at constant currencies, operational expenses excluding depreciation & amortisation increased by 3.2% compared to the results registered in the third quarter of 2019, due to lower capitalized costs and project costs.
Consequently, EBITDA for the quarter was €117.8 million, up 9.1% from a year earlier.
In the third quarter of 2020, VP Securities standalone EBITDA margin was positively impacted by the one-off release of accruals on revenue and the implementation of IFRS16. On a like-for-like basis at constant currencies, EBITDA for Q3 2020 increased 3.6%, to €110.9 million.
The reported net profit share of the Group for the third quarter of 2020 increased by 10.6% from a year earlier to €70.2 million. This represents a reported EPS of €1.01 basic and €1.00 fully diluted in Q3 2020, compared to €0.91 basic and €0.91 fully diluted in the corresponding period a year earlier.