Euronext revenue soars 30% to €884m

Pan-European financial exchanges operator Euronext said on Wednesday its 2020 revenue rose 30.2% to €884.3 million and reported net income soared 42.1% to €315.5 million.

Euronext operates regulated exchanges in Amsterdam, Brussels, Dublin, Lisbon, Oslo and Paris.

“In accordance with Euronext dividend policy, a pay-out ratio of 50% of reported net income representing a dividend for 2020 of €157.5 million (€2.25 per share) will be proposed to the AGM on 11 May 2021,” said the company.

Euronext said trading revenue increased 33.8% to €365.1 million with growth in all asset classes and listing revenue increased 12.8% to €145.5 million.

Euronext CEO Stéphane Boujnah said: “Euronext delivered a strong performance in Q4 and throughout 2020 with double digit growth in revenue, EBITDA and adjusted EPS.

“This growth results from Euronext ability to capture value in a volatile trading environment, strengthening its market position, and from our successful continued diversification, notably in post-trade activity which now represents the second largest revenue contributor for the group.

“Despite the challenges of the Covid-19 pandemic, Euronext has demonstrated during 2020 that we are a resilient provider of solutions for the financial ecosystem and a value creator for our shareholders.

“Through product innovation, especially in ESG, and selective M&A, the group has significantly transformed its business mix.

“The group continued to work on integrating recent acquisitions.

“A large proportion of the targeted savings for Oslo Børs VPS in Norway and VP Securities in Denmark has already been achieved.

“Oslo Børs markets were successfully migrated to Euronext proprietary trading platform Optiq in November.

“As a result of these achievements and continued cost discipline, Euronext expects group operating costs (excluding D&A) in 2021 to decrease by a mid-single digit compared to annualised 2020 fourth quarter operating costs excluding D&A.

“This year, Euronext also delivered, two years in advance, on its ‘Let’s grow together 2022’ strategic plan financial targets.

“Moreover, the group successfully executed on its capital deployment plan, expanding its footprint in the Nordic region and diversifying its businesses.

“Euronext also delivered on the ESG roadmap, advancing the European sustainability agenda through our unique role in financing the real economy by connecting local economies with global capital markets.

“Euronext continues to work on the contemplated acquisition of the Borsa Italiana Group, expected to complete during the first half of 2021, which will deliver on the Euronext ambition to build the leading pan-European market infrastructure.

“New guidance will be announced for the extended group in Q4 2021.”