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Revenue at ISE owner Euronext rises 16% in first quarter

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The owner of the Irish Stock Exchange saw revenue rise 16 per cent in the first quarter of the year, lifted by revenues from cash trading, along with market data and indices.

Euronext, which completed its acquisition of the Irish Stock Exchange earlier this year, said revenue rose to to €146.7 million, with cash trading revenue up 10.4 per cent to €55.7 million on its sustained market share and volume growth. Revenue from market data and indices rose 15.4 per cent to €29.7 million.

However, listing revenue fell 4.3 per cent to €18 million in a mixed environment marked by a strong IPO pipeline and high volatility.

The group said its revenue diversification initiatives were contributing a growing amount to its figures, with FastMatch and Agility for Growth contributing €5.2 million and €4.2million to group revenue.

Earnings before interest, tax, depreciation and amoortisation were up 25 per cent to €88.2 million, with a 60.1 per cent margin.

Basic earnings per share grew 30.5 per cent to 82 cent, while adjusted EPS was 28.1 per cent higher at 85 cent.

Net income was 30 per cent higher at €57.3 million for the quarter as good operating performance combined with a fall in exceptional items and the first contribution from LCH equity stake.

The group said it had achieved efficiencies of €16.2 million since the second quarter of 2016 thanks to cost curbs. Core business costs continued to fall in the quarter, but said the acquisition of the ISE and the scope of Fast Match had increased its group staff costs and professional services.

“In March, Euronext reached a major milestone with the closing of the acquisition of the Irish Stock Exchange, now Euronext Dublin. The new combined Group has expanded its ambitions, with the creation of a group centre of excellence for Debt & Fund listings and ETFs,” said Stéphane Boujnah, chief executive of Euronext.

The group also acquired an 80 per cent stake in InsiderLog, for €5.8 million and launched a seven-year, €500 million bond that it listed on Euronext Dublin in April to refinance its 2017 acquisitions and diversify its financing mix.

“The oversubscription of the order book along with Euronext’s first A, stable outlook, S&P rating, shows the confidence of investors and external parties in its profile and strategy,” Boujnah said. “The second quarter has already seen the successful migration of bond regulated markets to the new Optiq matching engine and order entry gateway, paving the way for the full migration of cash markets in June.”

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