Euronext reports solid revenues, net profit for 2022
Euronext, which operates the biggest pan-European exchange, has published its results for the fourth quarter and full year 2022.
Full year 2022 underlying revenue came in at €1.46 billion, up 9.3 percent from €1.14 billion the previous year, illustrating the strong performance of non-volume related business and enhanced revenue capture.
The exchange operator attributed the results to stable performance in listing and post-trade businesses, as well as the contribution of the Borsa Italiana.
Trading revenue in 2022 was higher by 10 percent on a yearly basis at €541 million, primarily driven by strong performance of FX and power trading volumes. The softer cash trading volumes from the second semester of 2022 were offset by yield management and an uptick in market share from October 2022.
Meanwhile, post-trade revenue grew 13.7 percent to €364.5 million thanks to the strong performance of the clearing activities of its Italian units and Euronext’s diversified business model. In addition, custody and settlement revenue scored a 10 percent increase to €243.1 million even though the Nordic CSDs was less dynamic reflecting notably normalised levels of retail activity.
Net treasury income for Euronext Clearing was €44.0 million, excluding Q3 2022 €49.0 million of non-underlying pre-tax loss following the disposal of the Euronext Clearing portfolio.
Euronext said the transaction with the Milan-based stock exchange helped diversify its business mix into new asset classes, and strengthened its post-trade activities. In addition, it gave the exchange a clearinghouse for the first time, as well as a securities depository and bond platform.
Other business highlights show that non-volume related revenue accounted for 58 percent of the group’s total revenue in 2022, and covered 141% of underlying operating expenses, reflecting a solid year for non-volume related business.
The pan-European exchange posted €861.6 million in adjusted EBITDA, helping it earn €90.6 million in profit for the period, which was higher by 11.7 percent YoY, reflecting continued cost discipline despite strong inflationary pressure.
Commenting on the results, Stéphane Boujnah, CEO and Chairman of Euronext, said “This year has been crucial in laying the foundations for the future growth of the Group. We have successfully completed the first major milestone of our ‘Growth for Impact 2024’ strategic plan with the migration of our Core Data Centre from the UK to Italy. This further demonstrates Euronext’s successful track record in integrating acquired companies. Our strong performance, combined with the successful ongoing delivery of the planned synergies, is supporting our deleveraging trajectory with a net debt to EBITDA ratio at 2.6x, well below 3.2x at the time of closing of the Borsa Italiana Group acquisition.”