Euronext, the leading pan-European market infrastructure, today publishes its results for the third quarter 2022
- Q3 2022 underlying revenue and income was stable compared to Q3 2021 underlying revenue and income1, at €350.3 million (-0.1%2 reported, -€0.3 million, reported revenue and income at €301.4 million) illustrating the strong performance of non-volume related business:
- Non-volume related revenue accounted for 59% of Q3 2022 underlying revenue1 (vs. 57% in Q3 2021) and covered 138% of underlying operating expenses, excluding D&A (vs. 142% in Q3 2021).
- Trading revenue was down at €117.8 million (-6.0% like-for-like, -5.2% reported), resulting from lower cash equity and MTS Cash volumes, partially offset by efficient yield management and strong quarters for FX, derivatives and power trading.
- Post-trade revenue (excluding NTI) grew to €86.2 million (+2.2% like-for-like, +3.7% reported). Custody and Settlement revenue was €57.1 million (+0.5% like-for-like, +2.8% reported) thanks to the diversified Euronext Securities business model in a normalising settlement environment. Clearing revenue increased to €29.1 million (+5.5% like-for-like, +5.5% reported) as a result of growing bonds and derivatives clearing activity. Net treasury income for Euronext Clearing was -€38.3 million, including -€49.0 million of non-underlying pre-tax loss following the partial disposal of the Euronext Clearing portfolio1, as announced in Euronext second quarter 2022 results.
- Listing revenue grew to €54.0 million (+5.9% like-for-like, +6.3% reported), demonstrating the resilience of the business in tough market conditions. Euronext remained the leading venue for equity listing in Europe and for debt listing worldwide. Euronext recorded 18 new equity listings in Q3 2022. Four new companies joined the new Euronext Tech Leaders segment following its launch in June 2022.
- Advanced Data Services revenue grew to €53.0 million (+6.5% like-for-like, +6.3% reported), driven by a strong performance across the offering.
- Adjusted EBITDA3 was at €199.9 million (-4.4% reported, -€9.2 million) reflecting continued cost discipline in an inflationary environment. Adjusted EBITDA margin was at 57.1% (-2.6pts like-for-like, -2.6pts reported):
- Underlying operating expenses, excluding D&A, were €150.4 million (+5.6% like-for-like, +6.3% reported), in line with 2022 cost guidance of €612 million of underlying costs.
- Reported net income, share of the parent company shareholders, was down -34.5% to
€75.8 million (-€40.0 million), mainly due to the non-underlying one-off loss in net treasury income:- Net financing expenses were at €4.6 million and results from equity investments amounted to €1.7 million. Income tax rate was at 26.2%.
- Adjusted EPS4 was down -3.2% at €1.215.
- Net debt to reported EBITDA7 was at 2.3x at the end of September 2022.
- Continued delivery of targeted synergies in relation to the Borsa Italiana Group acquisition:
- €24.4 million cumulated run-rate annual synergies achieved at the end of Q3 2022. €0.3 million run-rate annual synergies delivered in Q3 2022.
- €37.9 million of cumulated implementation costs incurred at the end of Q3 2022, of which €1.2 million during Q3 2022.
- Continued advancement of the integration of the Borsa Italiana Group:
- Euronext has successfully introduced a new listing framework in Italy, which is harmonised with Group and global standards. The harmonisation of the listing framework will benefit Italian issuers and strengthen the Italian capital market ecosystem.
- Euronext confirmed the first phase of the migration of Borsa Italiana cash markets onto Optiq® in March 2023. The migration to the Euronext state-of-the-art proprietary trading platform will provide Euronext and Borsa Italiana clients with significant benefits while retaining a strong local footprint, as demonstrated in the two previous successful migrations in Ireland and Norway.
- Euronext confirmed the first phase of the expansion of Euronext Clearing with the expected launch of the equity clearing offering by the end of 2023. This is the first milestone in the transformation of Euronext Clearing to create the Euronext clearing house of choice for its cash equity markets, further ensuring strategic alignment between the Euronext markets and its clearing house.
