Acquisition of the ISE helps drive revenue at Euronext

Pan-European stock exchange saw listed revenue rise 20.3% during second quarter

At the announcement of Euronext’s acquisition of the ISE Stéphane Boujnah, Euronext CEO, and Deirdre Somers, former head of the ISE

At the announcement of Euronext’s acquisition of the ISE Stéphane Boujnah, Euronext CEO, and Deirdre Somers, former head of the ISE

 

The acquisition of the Irish Stock Exchange drove listing revenue at Euronext, the pan-European stock exchange, up 20.3 per cent during the second quarter of the year.

Euronext, which has 1,300 listed issuers on its books and completed its acquisition of the Irish Stock Exchange earlier this year – now known as Euronext Dublin – said revenue increased by 14.6 per cent to €157.3 million.

It also recorded listing revenue of €28.4 million, representing an increase of 20.3 per cent, “resulting from the consolidation of Euronext Dublin and improved primary markets”. This offset “moderate activity” in secondary markets.

Earnings before interest, taxes, depreciation, and amortisation (Ebitda) was up 11.9 per cent to €88.6 million, with a 56.3 per cent margin.

The acquisitions of the Irish Stock Exchange and FastMatch also drove group costs up due to transactions costs.

“This quarter was marked by the integration of Euronext Dublin, contributing €8.7 million to Euronext revenue,” Euronext said.

“Furthermore, a stable trading environment on Euronext markets, combined with improved revenue capture, translated into robust growth on trading activities.”

Operational expenses excluding depreciation and amortisation increased to €68.7 million, which was an increase of 18.3 per cent, mainly due to the roll-out of “agility for growth” initiatives, and the incorporation of FastMatch and Euronext Dublin.

The acquisition of the Irish Stock Exchange and restructuring costs within other Euronext locations led to exceptional costs of €6.2 million compared to €1.4 million during the same period in 2017.

Euronext has previously announced that Deirdre Somers, the former head of the Irish Stock Exchange, has resigned from her position.

New CEO

The supervisory board of Euronext has nominated Daryl Byrne as the new chief executive of Euronext Dublin, head of debt and funds listings and exchange-traded funds, as well as a member of the managing board of Euronext.

This is subject to formal appointment by an extraordinary shareholders’ meeting.

Euronext chief executive Stéphane Boujnah said the addition of Euronext Dublin diversified the organisation’s revenue profile.

“The second quarter saw the first contribution from Euronext Dublin, that diversifies our revenue profile, strengthens our listing franchise and positions Euronext as the world leading listing venue for debt,” he said.

“Our teams are now working on the integration that is progressing as planned.

“Thanks to its continued cost discipline, Euronext achieved a 56.3 per cent Ebitda margin at group level, while delivering on these major projects.

“Within the scope of our strategic plan, this translates into a 60 per cent Ebitda margin for core business and agility for growth initiatives, excluding clearing and new perimeter, for the quarter, and a 61.8 per cent Ebitda margin for the first half of 2018.”