Euronext posts strong Q2 revenues, FX business disappoints

abdelaziz Fathi

Euronext, which operates the biggest pan-European exchange, said its second-quarter revenues improved 56 percent to €328.8 million. The exchange operator attributed the rise to a strong performance in listing and post-trade businesses, as well as the first consolidation with Borsa Italiana Group.

Euronext reportedly looking to block LSE-Deutsche Boerse merger

Trading revenue was on the uptick, having increased by 26 percent to €112.8 million, primarily driven by the consolidation of Borsa Italiana capital markets and robust yield. Post-trade revenue also grew 134 percent to €83.4 million thanks to the strong performance of the two Nordic CSDs, Euronext VPS in Norway and VP Securities in Denmark.

Meanwhile, non-volume related revenue accounted for 56 percent of Euronext’s total revenue, up from 49 percent in Q2 2020, reflecting the expanded listing and post-trade business.

The pan-European exchange posted €192.9 million in second-quarter EBITDA, helping it earn a better-than-expected €86.6 million in profit for the period, which was up 53 and 5.6 percent, respectively.

On the FX business front, Euronext FX has reported an average daily volume on its spot foreign exchange market at $18.6 billion for the Q2 2021, down 10 percent compared to a year ago. The spot foreign exchange division yielded €5.7 million in revenues, down 13 percent from €6.6 million in Q2 2020.

Euronext FX franchise disappointed expectations that were already heightened for 2021 after the exchange posted record trading volumes that were more than double the figure it typically generated before the pandemic.

Euronext said Borsa Italiana Group contributed €89.6 million to Q2 revenue. The exchange completed its €4.3 billion acquisition of the Italian key bourse from the London Stock Exchange in April after it received the blessing of the European Commission. The takeover marks another step forward for Euronext in its bid to create a new financial markets heavyweight.

Commenting one the results, Stéphane Boujnah, CEO and Chairman of Euronext, said:

“During this second quarter of 2021, we achieved the targeted synergies for VP Securities, only 11 months after closing. With this new milestone, we have completed, well ahead of schedule, the integration plan for our recent Nordic acquisitions. Since the closing of the acquisition of the Borsa Italiana Group, teams across the core Euronext businesses and the Borsa Italiana Group are working together with enthusiasm to build the leading pan-European market infrastructure. We are actively preparing the announcement of the new Euronext strategic plan, including 2024 Group guidance, which we will release in November 2021.”

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