Irish Stock Exchange deal boots earnings at Euronext

Pan-European exchange reports 26% jump in Q3 earnings

Euronext completed its acquisition of the Irish Stock Exchange back in March. Photograph: Dara Mac Dónaill/The Irish Times

Euronext completed its acquisition of the Irish Stock Exchange back in March. Photograph: Dara Mac Dónaill/The Irish Times

 

Pan-European exchange Euronext on Monday posted a better-than-expected 26.4 per cent jump in third-quarter core earnings, helped by its acquisition of the Irish Stock Exchange, higher listings and a rise in trading volumes.

Volatility is an important driver of trading across a range of asset classes and the US-China trade war has sparked some market volatility in recent months as did tensions between Western powers and Saudi Arabia over the killing of Saudi journalist Jamal Khashoggi.

Euronext, which operates bourses in Paris, Amsterdam, Brussels, London, Lisbon and Dublin, said earnings before interest, tax, depreciation and amortisation (EBITDA) rose to €87.8 million during the quarter, from €69.5 million a year earlier. Analysts had expected core earnings of €82.5 million , according to company supplied consensus estimates.

Revenue rose 17.2 per cent to €150.9 million in the period, with revenue from listings jumping 37.6 per cent in the quarter from a year earlier. Euronext Dublin, which the group acquired in March 2018 for €158.8 million, contributed revenues of €8.1 million during the period.

The company saw three new listings in October from Shurgard Self Storage and Neoen on its main market and Medincell on Euronext Growth that raised €1.23 billion.

Revenue from cash trading rose 9.2 per cent to €48.5 million in the quarter, helped by better volumes and in an environment of persistent low volatility.

Euronext has trimmed its costs since its own share listing in 2014 and chief executive Stéphane Boujnah said the it had reached its 2019 target one year in advance. Last month Euronext said it would cut 16 per cent of the workforce at the Irish Stock Exchange as part of efficiency savings.

The company said clearing revenue rose 11.6 per cent to €14.2 million in the quarter.

Euro clearing has become a Brexit battleground as some EU policymakers want it moved from London, where London Stock Exchange dominates, to the single currency area after Britain leaves the bloc in March, threatening the city’s role as a global financial centre.– Reuters