Euronext marks steep rise in spot FX trading revenues in Q1 2020

Maria Nikolova

Spot FX trading generated €8 million of revenue in the first quarter of 2020, up 39.5% from the year-ago quarter.

Euronext NV (EPA:ENX) today posted its financial report for the first quarter of 2020, with high trading volumes propelling revenues.

Revenue for the first quarter of 2020 amounted to €236.8 million, up 55.2% from the year-ago quarter.

Trading revenue increased to €111.8 million (+73.3%), with 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 a highly volatile environment.

Spot FX trading activity on the Euronext FX spot foreign exchange market recorded average daily volumes of $25.9 billion in the first three months of 2020, up 30.8% compared to $19.8 billion in the corresponding period a year earlier, driven by a strong volatility environment through the quarter and an improved fee scheme offsetting a less favourable volume mix.

As a result, spot FX trading generated €8 million of revenue in the first quarter of 2020, up 39.5% compared to €5.8 million in the first quarter of 2019. On a like-for-like basis, spot FX trading revenue was up 35.5% in the first quarter of 2020.

Post-trade revenue doubled to €39.2 million (+109.3%), on the back of the consolidation of the Norwegian VPS CSD revenue and higher clearing revenue. Like-for-like, post-trade revenue increased 33%.

Euronext registered 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).

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 by 0.9%.

EBITDA totalled €150 million in the first quarter of 2020, up 68.1% from a year earlier, with EBITDA margin at 63.4% (+4.9pts).

Euronext saw group operating costs excluding D&A grow €23.4 million to €86.7 million as a result of the consolidation of costs from acquired businesses and higher clearing expenses.

Reported net income totalled €96.1 million, 71.2% higher than a year earlier.

Adjusted EPS amounted to €1.44, marking a growth of 65.3% from a year earlier.

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