Euronext Sees ‘Solid Quarter’ as Revenue Jumps 14% to €374.7M

The European New Exchange Technology (Euronext) said its saw a “solid quarter” in its financials for the second quarter of 2022.

The pan-European exchange group’s consolidated revenue and income for the period climbed 14% to €374.7 million.

The group, which operates regulated markets in Belgium, France and Italy, among other countries, shared its Q2 2022 results with Finance Magnates on Thursday.

Euronext said its revenue growth was driven majorly by the “dynamic performance of non-volume related activities.”

This growth was also supported by a “strong performance from trading operations supported by volatile market conditions and solid revenue capture.”

Moreover, Euronext’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) also climbed 12.3% quarter-over-quarter (QoQ) to €221.7 million.

“This represents an adjusted EBITDA margin of 59.2%, down -0.9 points compared to Q2 2021 due to ongoing strategic and integration costs. Pro forma the Borsa Italiana Group acquisition, Q2 2022 adjusted EBITDA was up +2.5% year-over-year,” Euronext explained in the finanicials.

Cash, Derivates, Fixed Income

Similarly, Euronext recorded jumps in its cash, derivatives, fixed income and forex trading activities.

After the first quarter, or in April, these markets had crashed across board on a month-over-month basis.

However, in Q2 2022, the cash trading revenue shot up 7.4% to €75.3 million as a result of “higher volumes due to sustained market volatility and solid revenue capture.”

Derivates trading jumped to €14.9 million, a 14.3% growth from the same quarter last year.

Euronext attributed this growth to “strong traction of index derivatives in the volatile market environment combined with enhanced revenue capture.”

Furthermore, the fixed income market, revenue came in at €24.9 million in the second quarter, a 44% increase from €17.3 million posted in the same period last year.

Forex Markets

From its forex market, Euronext said its generated a €7.3 million in forex trading revenue, a 27.6% rise from second quarter of 2021.

Additionally, the exchange also saw a corresponding 27.6% jump in its average daily volume revenue from spot forex trading.

The revenue rose from $18,617 million in 2020 to $23,639 million last month.

Euronext explained, “Euronext FX trading volumes and revenue benefited from the continued positive momentum started in Q1 2022 with heightened volatility.

“Over the second quarter of 2022, average daily volumes of US$23.6 billion were recorded, up +27.0% compared to Q2 2021.

“On a like-for-like basis at constant currencies, FX trading revenue was up +12.8% in Q2 2022 compared to Q2 2021.”

Source