Euronext publishes Q2 2022 results
Contacts
Media |
Contact Investor Relations |
Amsterdam |
+31 20 721
4133 |
Brussels |
+32 2 620 15
50 |
+33 1 70 48 24
27 |
Dublin |
+33 1 70 48 24
45 |
Lisbon |
+351 210 600
614 |
|
Milan |
+39 02 72 42 62
12 |
Oslo |
+47 41 69 59
10 |
|
Paris |
+33 1 70 48 24
45 |
|
|
|
Euronext publishes Q2
2022 results
Solid quarter driven
by the sustained
dynamism of non-volume activities
and of trading
operations. First
revenue synergies related to
the Borsa
Italiana Group
acquisition delivered.
Amsterdam, Brussels, Dublin, Lisbon,
Milan, Oslo and Paris – 28
July 2022
– Euronext, the leading pan-European market
infrastructure, today publishes its results for the second quarter
2022.
-
Q2 2022
revenue and income up
+2.5%
pro forma1,
compared to Q2 2021 underlying revenue and
income2,
to
€374.7
million
(+14.0%
reported,
+€45.9
million) driven
by the growth of
non-volume related
business and trading activities:
- Non-volume related revenue
accounted for 59% of Q2 2022 total revenue (vs. 60% pro forma in Q2
2021) and covered 144% of underlying operating expenses, excluding
D&A (vs. 150% in Q2 2021 pro forma).
- Contribution of the Borsa Italiana
Group to revenue was €129.2 million.
- Trading revenue grew to €129.2
million (+3.7% pro forma, +14.6% reported), resulting from a robust
performance across all asset classes in a volatile market
environment. Cash trading revenue was €75.3 million (+1.4% pro
forma, +7.4% reported), reflecting strong revenue capture, and
fixed income trading revenue was €24.9 million (+2.4% pro forma,
+44.0 % reported).
- Post-trade revenue grew to €93.9
million (+1.8% pro forma, +12.6% reported). Clearing revenue
increased to €31.4 million (+5.5% pro forma, +18.0% reported)
as a result of a volatile environment and net treasury income of
Euronext Clearing was €15.7 million. Custody and Settlement revenue
was €62.5 million (+0.1% pro forma, +10.1% reported) thanks to the
resilience of the diversified Euronext Securities business model in
a normalising settlement environment.
- Euronext remained the leading venue
for equity listing in Europe and for debt listing worldwide.
Euronext recorded 19 new equity listings in Q2 2022. Listing
revenue grew to €55.4 million (+7.8% pro forma, +15.0% reported),
demonstrating the resilience of the business and the attractiveness
of the offering.
- Advanced Data Services revenue grew
to €52.0 million (+2.4% pro forma, +11.9% reported) due to a solid
core data business performance.
-
Adjusted EBITDA3
up
+2.5%
pro forma to
€221.7
million
(+12.3%
reported,
+€24.3
million) reflecting
continued cost discipline and successful
ongoing integration.
Adjusted EBITDA margin
at
59.2%
(stable pro
forma,
-0.9pt
reported):
- Underlying
operating expenses, excluding D&A, were €153.0 million (+2.6%
pro forma, +16.4% reported), resulting from continued cost
discipline in a context of ongoing integration.
- Reported
net income, share of the parent company shareholders,
up +25.6%
pro forma
(+37.2%
reported) to
€118.9 million
(+€32.2 million):
- Net financing expenses were at €9.1
million and results from equity investments amounted to €1.2
million, impacted by an impairment. Income tax rate was 27.1%.
- Adjusted
EPS4 was down
-6.1%
to
€1.345.
- Key figures
for Q2 2022
In €m, unless stated otherwise |
Q2 2022 |
Q2 2021 |
% var |
% var
l-f-l6 |
% var pro forma |
Revenue and
income |
374.7 |
328.8 |
+14.0% |
+2.4% |
+2.5% |
Underlying operational expenses excluding D&A |
(153.0) |
(131.4) |
+16.4% |
+3.3% |
+2.6% |
Adjusted EBITDA |
221.7 |
197.4 |
+12.3% |
+1.7% |
+2.5% |
Adjusted EBITDA margin |
59.2% |
60.0% |
-0.9pt |
-0.4pt |
0.0pt |
Net income, share of the parent company shareholders |
118.9 |
86.6 |
+37.2% |
|
+25.6% |
Adjusted Net income, share of the parent company
shareholders |
143.2 |
134.6 |
+6.4% |
|
|
Adjusted EPS (basic, in€) (share count differs
between the two periods) |
1.34 |
1.43 |
-6.1% |
|
|
Reported EPS (basic, in€) (share count differs
between the two periods) |
1.11 |
0.88 |
+26.3% |
|
|
Adjusted EPS (diluted, in€) (share count differs between the two
periods) |
1.34 |
1.43 |
-6.1% |
|
|
Reported EPS (diluted, in€) (share count differs between the two
periods) |
1.11 |
0.88 |
+26.3% |
|
|
- Net debt
to reported EBITDA7
at 2.4x
at the end of June
2022.
- Climate
commitment: Step up
in Euronext ESG
‘Fit for 1.5°’ commitment setting
ambitious emission reduction targets in line with
the
SBTi8.
The first major step
was achieved with the
successful migration to a full green
Core Data
Centre in June
2022.
- Continued
momentum in the delivery of targeted
synergies, in relation to
the Borsa Italiana
Group acquisition:
-
€24.1 million
cumulated run-rate annual synergies
achieved at the end of Q2 2022. €8.9 million run-rate
annual synergies delivered in Q2 2022, mainly related to the first
phase of revenue synergies arising from the successful migration of
Euronext’s Core Data Centre.
- €36.7 million of cumulated
implementation costs incurred at the end of Q2 2022, of which €5.4
million during Q2 2022.
-
Significant quarter for the
integration of the Borsa
Italiana Group:
- Successful move of Euronext’s Core
Data Centre from Basildon, in the UK, to Bergamo, in Italy, paving
the way for the migration of Italian cash and derivatives markets
onto the Optiq® trading platform in 2023.
- Euronext Clearing adoption of VaR
methodology for fixed income instruments advancing the European
expansion of Euronext Clearing9.
- Acceleration of the integration of
MTS and Euronext Securities Milan through the contemplated
acquisition of the technology businesses from Nexi’s capital
markets activities10.
- Stéphane
Boujnah, Chief Executive Officer and Chairman of the Managing Board
of Euronext, said:
“This second quarter of 2022 was marked by the
continuation of the volatile environment seen since the first
quarter of the year. Euronext’s business model again demonstrated
its resilience, and generated solid growth in revenue, adjusted
EBITDA and adjusted net income.
A key milestone in our ‘Growth for Impact 2024’
strategic plan was achieved with the successful migration of our
Core Data Centre from Basildon, near London, to a fully green data
centre in Bergamo, near Milan. This migration enables Euronext to
deliver the first revenue synergies targeted under our 2024
strategic plan. This success paves the way to the migration of
Italian cash and derivatives markets to the Euronext
state-of-the-art European proprietary trading platform Optiq® by
2023. In addition, we pursued our integration work and we reached
€24.1 million cumulated run-rate annual synergies in relation to
the acquisition of the Borsa Italiana Group at the end of Q2 2022,
14 months after the closing of the transaction.
As previously announced, we disclosed our Fit
for 1.5° climate targets, aligned with SBTi standards. These
ambitious targets will be achieved through the transformation of
our own operations without any purchase of any offsetting credit.
These Euronext commitments have an impact on the whole ecosystem,
engaging our suppliers to join forces with us for the creation of a
more sustainable global financial system.”
Euronext Q2
2022 financial performance
In €m, unless stated otherwiseThe figures in this
document have not been audited or reviewed by our external
auditor. |
Q2 2022 |
Q2 2021 |
% var |
% var(like-for-like, constant currencies) |
% var Pro forma |
Revenue and income |
374.7 |
328.8 |
+14.0% |
+2.4% |
+2.5%11 |
Listing |
55.4 |
48.2 |
+15.0% |
+5.9% |
+7.8% |
Trading revenue, of which |
129.2 |
112.8 |
+14.6% |
+4.0% |
+3.7% |
Cash trading |
75.3 |
70.1 |
+7.4% |
+2.7% |
+1.4% |
Derivatives trading |
14.9 |
13.1 |
+14.3% |
+6.2% |
+8.3% |
Fixed income trading |
24.9 |
17.3 |
+44.0% |
+28.3% |
+2.4% |
FX trading |
7.3 |
5.7 |
+27.6% |
+12.8% |
+27.6% |
Power trading |
6.9 |
6.6 |
+3.4% |
+2.7% |
+3.4% |
Investor Services |
2.3 |
2.2 |
+4.9% |
+11.1% |
+4.9% |
Advanced Data Services |
52.0 |
46.5 |
+11.9% |
+2.1% |
+2.4% |
Post-Trade, of which |
93.9 |
83.4 |
+12.6% |
-0.6% |
+1.8% |
Clearing |
31.4 |
26.6 |
+18.0% |
+4.1% |
+5.5% |
Custody and Settlement |
62.5 |
56.8 |
+10.1% |
-2.7% |
+0.1% |
Euronext Technology Solutions & Other |
24.1 |
22.9 |
+5.6% |
+1.7% |
-8.4% |
NTI through CCP business |
15.7 |
9.6 |
+64.4% |
n/a |
+14.7% |
Other income |
1.0 |
1.4 |
-25.3% |
-83.9% |
-32.5% |
Transitional revenues |
0.9 |
1.9 |
-53.8% |
n/a |
-63.5% |
Underlying operational expenses exc. D&A |
(153.0) |
(131.4) |
+16.4% |
+3.3% |
+2.6% |
Adjusted EBITDA |
221.7 |
197.4 |
+12.3% |
+1.7% |
+2.5%1 |
Adjusted EBITDA margin |
59.2% |
60.0% |
-0.9pt |
-0.4pt |
0.0pt |
Operating expenses exc. D&A |
(161.1) |
(161.2) |
-0.0% |
+3.3% |
-11.6% |
EBITDA |
213.6 |
167.6 |
+27.4% |
+1.7% |
+12.6% |
Depreciation & Amortisation |
(38.5) |
(31.2) |
+23.5% |
-14.4% |
+1.3% |
Total Expenses (inc. D&A) |
(199.6) |
(192.4) |
+3.8% |
+1.7% |
-9.3% |
Adjusted operating profit |
206.9 |
182.6 |
+13.3% |
+2.9% |
+3.6% |
Operating Profit |
175.1 |
136.4 |
+28.3% |
|
+15.4% |
Net financing income / (expense) |
(9.1) |
(13.0) |
-30.1% |
|
-37.9% |
Results from equity investments |
1.2 |
2.3 |
-46.1% |
|
-46.1% |
Profit before income tax |
167.2 |
125.7 |
+33.0% |
|
+20.0% |
Income tax expense |
(45.2) |
(37.2) |
+21.8% |
|
+8.0% |
Share of non-controlling interests |
(3.1) |
(1.9) |
+62.1% |
|
+6.5% |
Net income, share of the parent company
shareholders |
118.9 |
86.6 |
+37.2% |
|
+25.6% |
Adjusted Net income, share of the parent company
shareholders12 |
143.2 |
134.6 |
+6.4% |
|
|
Adjusted EPS (basic, in€) |
1.34 |
1.43 |
-6.1% |
|
|
Reported EPS (basic, in€) |
1.11 |
0.88 |
+26.3% |
|
|
Adjusted EPS (diluted, in€) |
1.34 |
1.43 |
-6.1% |
|
|
Reported EPS
(diluted, in€) |
1.11 |
0.88 |
+26.3% |
|
|
Q2
2021 pro forma income
statement disclosed in appendix
Q2
2022 revenue and income
In Q2 2022, Euronext consolidated revenue and
income increased to €374.7 million, up +14.0%, resulting primarily
from the dynamic performance of non-volume related activities and a
strong performance from trading operations supported by volatile
market conditions and solid revenue capture. On a like-for-like
basis and at constant currencies, Euronext consolidated revenue and
income grew +2.4% in Q2 2022, to €245.5 million, compared to Q2
2021. Pro forma the Borsa Italiana Group acquisition on 29 April
2021, Q2 2022 revenue grew +2.5% compared to Q2 2021 underlying
revenue and income1, resulting from solid organic growth across all
businesses.
Non-volume related revenue accounted for 59% of
total Group revenue in Q2 2022, compared to 60% pro forma in Q2
2021, reflecting the successful diversification toward non-volume
related activities. The underlying operating expenses
excluding D&A coverage by non-volume related revenue ratio was
at 144% in Q2 2022, compared to 150% pro forma in Q2 2021.
Q2
2022 adjusted
EBITDA
Underlying operational expenses excluding
depreciation and amortisation increased to €153.0 million, up
+16.4%, primarily as a result of the consolidation of the costs
from acquisitions, partially offset by continued cost control and
delivery of planned synergies. On a like-for-like basis, underlying
operational expenses excluding depreciation and amortisation
increased by +3.3% compared to Q2 2021 that was positively impacted
by the decrease of travel and marketing due to the pandemic. On a
pro forma basis, underlying operational expenses excluding
depreciation and amortisation increased by +2.6% compared to Q2
2021.
Consequently, adjusted EBITDA for the quarter
increased to €221.7 million, up +12.3% compared to Q2 2021. 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 on year13. On a like-for-like basis,
adjusted EBITDA for Q2 2022 was up +1.7%, to €143.2 million, and
adjusted EBITDA margin was 58.3%, down -0.4 points compared to the
same perimeter in Q2 2021.
Q2
2022 net income, share of the parent
company shareholders
Depreciation and amortisation accounted for
€38.5 million in Q2 2022, up +23.5%, resulting from the
consolidation of D&A from acquisitions. PPA related to acquired
businesses accounted for €20.9 million.
Adjusted operating profit was €206.9 million, a
+13.3% increase compared to Q2 2021. On a like-for-like basis,
adjusted operating profit was up +2.9% compared to Q2 2021, at
€134.7 million. Pro forma the Borsa Italiana Group acquisition,
adjusted operating profit was up +3.6%.
€31.8 million of non-recurring expenses,
including depreciation and amortisation, were reported in Q2 2022,
related to the integration of the Borsa Italiana Group, the
implementation of the ‘Growth for Impact 2024’ strategic plan and
the PPA of acquired businesses.
Net financing expense for Q2 2022 was €9.1
million compared to a net financing expense of €13.0 million
in Q2 2021. This decrease results from the costs of the issued debt
in relation to the bridge financing of the acquisition of the Borsa
Italiana Group in Q2 2021.
Results from equity investments amounted to €1.2
million in Q2 2022, representing the contribution received from LCH
SA, in which Euronext owns an 11.1% stake, partly offset by an
impairment. As a reminder, in Q2 2021, Euronext reported €2.3
million of results from equity investments.
Income tax for Q2 2022 was €45.2 million. This
translated into an effective tax rate of 27.1% for the quarter (Q2
2021: €37.2 million and 29.6% respectively).
Share of non-controlling interests mainly
relating to the Borsa Italiana Group and Nord Pool amounted to €3.1
million in Q2 2022.
As a result, the reported net income, share of
the parent company shareholders, increased by +37.2% for Q2 2022
compared to Q2 2021, to €118.9 million. This represents a reported
EPS of €1.11 basic and €1.11 fully diluted in Q2 2022, compared to
€0.88 basic and €0.88 fully diluted in Q2 2021. The weighted number
of shares used over the first six months of 2022 was 106,616,256
for the basic calculation and 106,802,961 for the fully diluted
calculation.
Adjusted net income, share of the parent company
shareholders was up +6.4% to €143.2 million. Adjusted EPS (basic)
was down -6.1% in Q2 2022, at €1.34 per share, based on 106,616,256
shares for H1 2022, compared to an adjusted EPS (basic) of €1.43
per share in Q2 2021, based on 85,094,834 shares for H1 2021.
In Q2 2022, Euronext reported a net cash flow
from operating activities of €76.8 million, compared to -€1.3
million in Q2 2021, reflecting lower negative changes in working
capital partially offsetting the consolidation of the Borsa
Italiana Group. Excluding the impact on working capital from
Euronext Clearing (formerly CC&G) and Nord Pool CCP activities,
net cash flow from operating activities accounted for 42.1% of
EBITDA in Q2 2022.
Business highlights
in €m, unless stated otherwise |
Q2
2022 |
Q2
2021 |
% change |
Listing revenue |
55.4 |
48.2 |
+15.0% |
Equity |
26.8 |
21.0 |
+27.4% |
Annual fees |
17.4 |
13.1 |
+33.0% |
Follow-ons |
4.6 |
4.3 |
+7.5% |
IPOs |
4.8 |
3.6 |
+30.7% |
Debts |
10.0 |
9.7 |
+3.0% |
ETFs, Funds & Warrants |
5.7 |
4.6 |
+23.1% |
Corporate Services |
10.1 |
10.4 |
-3.6% |
ELITE and Other |
2.9 |
2.4 |
+19.9% |
Money raised |
253,887 |
438,940 |
-42.2% |
Listing revenue was €55.4 million in Q2 2022, an
increase of +15.0% compared to Q2 2021, driven by a resilient
performance in equity listing and debt listing in a challenging
market environment. On a like-for-like basis at constant
currencies, listing revenue increased by +5.9% compared to Q2 2021.
Pro forma the Borsa Italiana Group acquisition, listing revenue
increased by +7.8% year on year.
Euronext’s primary equity listing business
sustained its leading position in Europe with 19 new listings in Q2
2022, compared to 63 new listings, pro forma, in Q2 2021.
The majority of new listings on Euronext were
from Tech and innovation-driven companies, with healthtech and
cleantech listings representing more than €2 billion in market
capitalisation. Two new SPAC listings and the listing of UK-based
biotech BenevolentAI through a business combination with the SPAC
Odyssey Acquisition on Euronext Amsterdam demonstrated Euronext’s
leading position in Europe for SPAC listings.
Euronext reinforced its offer for Tech companies
with the launch of Euronext Tech Leaders, an initiative dedicated
to highlighting the visibility and attractiveness of high-growth
and leading Tech companies to international investors, together
with a suite of services to support them along their listing
journey. De Nora, leading player in sustainable technologies,
joined the over 100 high-growth Tech companies in the Tech Leaders
segment on its listing in Milan at end June.
In Q2 2022, €2.1 billion was raised by newly
listed companies on major European stock exchanges, of which €1.1
billion was raised on Euronext, representing more than half of the
total money raised at listing in Europe14. This compares to a very
strong Q2 2021 with €7.0 billion raised on Euronext primary
markets.
Euronext’s secondary markets reported €11.1
billion raised in secondary equity issues in Q2 2022, compared to
€26.6 billion in Q2 2021.
Euronext remained a leading exchange in Europe
for the listing of ETFs, welcoming 96 new ETFs during the second
quarter of 2022.
Euronext sustained its position as the leading
listing venue for bonds worldwide in Q2 202215 with over 52,500
bonds listed across all Euronext markets, and continued the growth
of its ESG bond listing franchise. In Q2 2022, €241.7 billion in
debt was raised on Euronext’s markets, reflecting current market
conditions, and compared to €405.4 billion raised in Q2 2021.
In total, €253.9 billion in equity and debt was
raised on Euronext’s markets in Q2 2022, compared to €438.9 billion
in Q2 2021.
Euronext Corporate Services reported a solid
quarter in terms of revenue at €10.1 million in Q2 2022, down -3.6%
compared to Q2 2021, resulting from a solid performance across the
offering partially offset by a small decline in Company Webcast
activity compared to a very strong Q2 2021, that was positively
impacted by health restrictions supporting high demand for
webcasts.
in €m, unless stated otherwise |
Q2
2022 |
Q2
2021 |
% change |
Trading revenue |
129.2 |
112.8 |
+14.6% |
Cash trading revenue |
75.3 |
70.1 |
+7.4% |
ADV Cash market |
11,628 |
11,255 |
+3.3% |
|
|
|
|
Derivatives trading revenue |
14.9 |
13.1 |
+14.3% |
ADV Derivatives market (in lots) |
730,386 |
766,134 |
-4.7% |
|
|
|
|
|
|
|
|
Fixed income trading
revenue |
24.9 |
17.3 |
+44.0% |
ADV MTS Cash |
22,063 |
26,530 |
-16.8% |
TAADV MTS
Repo |
347,540 |
278,023 |
+25.0% |
ADV other
fixed income |
1,015 |
960 |
+5.8% |
|
|
|
|
Spot FX trading revenue |
7.3 |
5.7 |
+27.6% |
ADV spot FX Market (in USDm) |
23,639 |
18,617 |
+27.0% |
|
|
|
|
Power trading revenue |
6.9 |
6.6 |
+3.4% |
ADV Day-ahead power market (in TWH) |
2.52 |
2.17 |
+15.9% |
ADV Intraday
power market (in TWH) |
0.09 |
0.07 |
+27.5% |
Trading revenue on a reported basis (Q2 2021 excludes Borsa
Italiana Group revenue prior to the acquisition). All trading
volumes data on a pro forma basis to include the Borsa Italiana
Group trading activities. 2021 data has been restated
accordingly.
Cash trading revenue increased by +7.4% to €75.3
million in Q2 2022, resulting from higher volumes due to sustained
market volatility and solid revenue capture. Over the second
quarter of 2022, Euronext recorded cash average daily volumes of
€11.6 billion, a result of the volatile environment leading to a
volume increase of +3.3% compared to Q2 2021. Euronext continued to
be the provider of best market quality with a sustained
above-average EBBO presence across the equity markets it
operates16.
Over the second quarter of 2022, Euronext cash
trading yield was 0.51 bps, reflecting efficient yield management
in a volatile environment, and the market share of cash trading
averaged 67.1%.
On a like-for-like basis at constant currencies,
cash trading revenue was up +2.7% in Q2 2022 compared to Q2 2021.
Pro forma the Borsa Italiana Group acquisition, cash trading
revenue increased by +1.4% compared to Q2 2021.
Derivatives trading revenue increased by +14.3%
to €14.9 million in Q2 2022 as a result of the strong traction of
index derivatives in the volatile market environment combined with
enhanced revenue capture.
During the first quarter of 2022, average daily
volume on financial derivatives was 659,027 lots, down -4.7% from
Q2 2021 due to a decrease in equity futures and options trading.
Average daily volumes on commodity derivatives were at 71,359 lots
in Q2 2022, down -4.4% compared to Q2 2021 driven by the continued
high price environment.
Euronext revenue capture on derivatives trading
was €0.32 per lot for the second quarter of 2022, reflecting
improved volume mix and solid revenue capture, despite lower
commodities derivatives volumes.
On a like-for-like basis at constant currencies,
derivatives trading revenue was up +6.2% in Q2 2022 compared to Q2
2021. Pro forma the Borsa Italiana Group acquisition, derivatives
trading revenue was up +8.3% year on year.
Fixed income trading reported revenue at €24.9
million in Q2 2022, compared to €17.3 million in Q2 2021,
primarily resulting from the integration of MTS and strong repo
trading volumes. MTS reported a robust performance in markets
dominated by increasing interest rates. For the second quarter of
2022, MTS Cash reported €16.6 million of revenue and MTS Repo
reported €5.4 million of revenue.
The second quarter saw the strong traction in
Repo trading continue, with term-adjusted average daily volumes up
+25.0% compared to Q2 2021 to €347.5 billion. This partially offset
lower MTS Cash average daily volumes, down -16.8% to €22.1 billion,
compared to €26.5 billion in Q2 2021.
On a like-for-like basis at constant currencies,
fixed income trading revenue (solely Euronext perimeter) was up
+28.3% in Q2 2022 compared to Q2 2021. Pro forma the Borsa Italiana
Group acquisition, fixed income trading revenue increased by +2.4%
compared to Q2 2021.
FX trading reported revenue at €7.3 million in
Q2 2022, up +27.6% from Q2 2021. 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.
Power trading reported €6.9 million in revenue
in Q2 2022, a solid growth of +3.4% compared to Q2 2021, driven by
the increased footprint of Nord Pool in central Europe, UK and
Ireland and a continued solid performance in the Nordics. Over the
second quarter of 2022, average daily day-ahead power traded was
2.52TWh, up +15.9% compared to Q2 2021, and average daily intraday
power traded was 0.09TWh, up +27.5% compared to Q2 2021.
On a like-for-like basis at constant currencies,
power trading revenue was up +2.7% compared to Q2 2021.
Investor Services reported €2.3 million revenue
in Q2 2022, representing a +4.9% increase compared to a very strong
Q2 2021, resulting from continued commercial expansion partially
offset by a reduction of scope.
On a like-for-like basis at constant currencies,
Investor Services revenue was up +11.1% compared to Q2 2021.
Advanced Data Services revenue was €52.0 million
in Q2 2022, up +11.9% from Q2 2021, driven by the strong traction
of the core data business, solid index activities and good momentum
of the advanced data solutions franchise.
On a like-for-like basis at constant currencies,
Advanced Data Services revenue was up +2.1% compared to Q2 2021.
Pro forma the Borsa Italiana Group acquisition, Advanced Data
Services revenue increased by +2.4% compared to Q2 2021.
in €m, unless
stated otherwise |
Q2
2022 |
Q2
2021 |
% var |
Post-trade revenue and income |
109.6 |
93.0 |
+18.0% |
Clearing |
31.4 |
26.6 |
+18.0% |
Revenue from LCH SA |
19.6 |
18.8 |
+4.1% |
Revenue from Euronext Clearing |
11.8 |
7.8 |
+51.4% |
Net treasury
income through CCP business |
15.7 |
9.6 |
+64.4% |
Custody,
Settlement and other Post-Trade activities |
62.5 |
56.8 |
+10.1% |
Clearing revenue was up +18.0% to €31.4 million
in Q2 2022, as a result of strong activity from Euronext Clearing
and higher revenue received from LCH SA driven by increased
derivatives clearing volumes and higher net treasury income.
Non-volume related clearing revenue (including membership fees,
treasury income received from LCH SA) accounted for €11.5 million
out of the total clearing revenue in Q2 2022.
Euronext Clearing activities reflected an uplift
in cleared volumes across most asset classes in a volatile market
environment. In Q2 2022, Euronext Clearing revenue included €1.6
million from derivatives clearing, €4.2 million from equities
clearing, and €2.6 million from bonds clearing.
On a like-for-like basis at constant currencies,
clearing revenue was up +4.1% compared to Q2 2021. Pro forma the
Borsa Italiana Group acquisition, clearing revenue increased by
+5.5% compared to Q2 2021.
Net treasury income through the CCP business of
Euronext Clearing (formerly CC&G) reached an exceptional level
at €15.7 million in Q2 2022. This singular good performance
reflects very high level of cash held over the quarter, partially
offset by a lower spread. Pro forma the Borsa Italiana Group
acquisition, net treasury income increased by +14.7% compared to Q2
2021.
- Custody,
Settlement and other
Post-Trade
activities
Revenue from Custody, Settlement and other
Post-Trade activities, including the activities of Euronext
Securities (Copenhagen, Milan, Oslo, Porto), was €62.5 million in
Q2 2022, up +10.1% compared to Q2 2021, primarily resulting from
the consolidation of Euronext Securities Milan and from the
diversified business model of Euronext Securities enabling it to
capture value despite normalising settlement activities. 30,225,571
settlement instructions were processed in the second quarter of
2022 and assets under custody reached €6.3 trillion.
On a like-for-like basis at constant currencies,
Custody, Settlement and other Post-Trade revenue was down -2.7%
compared to Q2 2021. Pro forma the Borsa Italiana Group
acquisition, Custody, Settlement and other Post-Trade revenue
increased by +0.1% compared to Q2 2021.
- Euronext
Technologies and Other revenue
Euronext Technologies and Other revenue was
€24.1 million in Q2 2022, up +5.6% from Q2 2021 as a result of the
consolidation of Borsa Italiana Group technology businesses. The
first colocation revenues generated as a result of Euronext’s Core
Data Centre migration on 6 June 2022 are included in this revenue
line.
On a like-for-like basis at constant currencies,
Euronext Technologies and Other revenue was up +1.7% compared to Q2
2021. Pro forma the Borsa Italiana Group acquisition, Euronext
Technologies and Other revenue decreased by -8.4% compared to Q2
2021.
Q2 2022 corporate highlights since
publication of the Q1 2022 results on 18
May
- Successful
completion of the migration of Euronext’s Core
Data Centre
On 6 June 2022, Euronext announced the
successful completion of the migration of its Core Data Centre and
related colocation services from Basildon, UK, to the Aruba Cloud
Data Centre IT3 in Bergamo, Italy. This key milestone in the
integration of the Borsa Italiana Group was completed on schedule
in just 14 months, following the announcement of this strategic
decision in April 2021.
This move allows Euronext to fully control and
directly manage its core IT infrastructure, as well as a key
service to clients, colocation, which was previously outsourced. It
also allows the generation of colocation revenues, embedded in the
upgraded synergies.
The Core Data Centre migration has been timed in
order to pave the way for the migration of the Borsa Italiana
equity and derivatives markets onto the Euronext Optiq® trading
platform as soon as 2023.
The migration to the new green Core Data Centre
represents a key milestone in Euronext’s “Fit for 1.5°” commitment,
part of its ESG strategy. Located in the Aruba Global Cloud Data
Centre IT3’s certified and energy-efficient buildings, the new Core
Data Centre is entirely powered by renewable energy, much of it
self-produced through a large photovoltaic system and a
hydroelectric unit.
-
Announcement of Euronext’s climate targets
in line with the science-based targets initiative
On 21 June 2022, Euronext announced its
science-based climate targets to reduce greenhouse gas emissions in
alignment with the Paris Agreement, based on the framework provided
by the Science Based Targets initiative (SBTi)17. These targets
support Euronext’s recently announced "Fit for 1.5°” commitment to
net zero through the “Business Ambition for 1.5°” initiative in
partnership with the United Nations Climate Change “Race to Zero”
campaign. Euronext’s ESG commitment is a key pillar of Euronext’s
“Growth for Impact 2024” strategic plan announced in November
2021.
Applying the SBTi methodology to Euronext’s
emissions leads to the formulation of the following targets:
- Operational emissions
contraction target
- By 2030, Euronext will reduce its
Scope 1 and Scope 2 market-based greenhouse gas emissions by 70%
compared to 2020;
- By 2030, Euronext will reduce its
Scope 3 travel emissions by at least 46.2% compared to 2019.
- Supplier engagement
target
- By 2027, Euronext suppliers,
representing 67% of Euronext’s greenhouse gas emissions derived
from purchased goods and services, must set targets on their Scope
1 and Scope 2 emissions.
These are emissions reduction or contraction
targets which cannot be achieved through the purchase of offsetting
credits.
Euronext set out the following measures to
achieve its targets:
- Scope 1 emissions will be reduced
through consolidation and energy efficiency upgrades in the
building portfolio, energy efficiency investments, decommissioning
of gas-fired boilers and decarbonisation of the vehicle fleet;
- Scope 2 emissions will be reduced
by moving office space and data centres to renewable energy,
including through the move of Euronext’s Core Data Centre to the
Aruba Data Centre near Bergamo, Italy. The new Core Data Centre is
powered 100% by renewable energy sources and self-produces energy
through solar panels and its own hydroelectric power stations;
- Travel emissions will be reduced by
implementing a sustainable travel programme;
- Euronext will engage its key
suppliers directly and will deploy a new supplier onboarding
platform, which will support the ‘Euronext Supplier Code of
Conduct’, including provisions regarding environmental protection,
human rights, diversity and inclusion;
- Euronext will engage its staff
through Climate Workshops, organised in partnership with Climate
Fresk, which aim to develop awareness and ability to act by keeping
environmental impacts in mind, at both individual and company
level.
-
Acquisition of the technology businesses
from Nexi’s capital markets
activities
On 14 June 2022, Euronext announced the signing
of the sale by Nexi and purchase by Euronext of the technology
businesses currently powering MTS, Euronext’s leading
fixed-income trading platform, and Euronext Securities Milan
(the Transaction). The purchase price will be paid in cash,
and amounts to c. €57 million (on a debt free, cash free basis),
subject to customary closing adjustments.
This Transaction is a new step in Euronext’s
strategy to leverage its integrated value chain as it further
enhances Euronext’s technology competencies and capabilities in
trading and post trade.
The Transaction will also strengthen the core
operations of MTS and Euronext Securities Milan, which joined
Euronext in April 2021. With this Transaction,
Euronext internalises the core trading platform of MTS
and its largest IT contract. It enables Euronext to
become more agile and efficient by fully owning the technology
powering MTS and Euronext Securities Milan.
The Transaction, which will be realised
through Euronext’s subsidiaries MTS and Euronext Securities
Milan, is expected to close in the second half of 2022 and is
subject to the customary approvals from the competent authorities
and completion of the union consultation procedure.
- Euronext
Clearing introduces VaR-based
margin methodology
On 21 June 2022, Euronext announced the
introduction of a new VaR-based margin methodology for government
bonds traded on the MTS cash and repo platforms and BrokerTec on
MOT, EuroTLX and Hi-MTF platforms.
The introduction of the new methodology falls
under the next-to-come market best practice, applying
state-of-the-art risk principles and parameters. It is a first
major step toward the European expansion of Euronext Clearing,
marking an important milestone of the Euronext “Growth for Impact
2024” strategic plan.
The VaR-based margin methodology for Italian,
Portuguese, Spanish, and Irish government bonds has been live since
20 June 2022, as part of the continuous evolution of Euronext
Clearing Risk Management systems, replacing the MVP SPAN-like
margin methodology that currently applies to all other bond
instruments.
Corporate highlights since
30 June 2022
- Recent
developments on Euronext Clearing
Euronext Clearing has engaged in an important
transformation aimed at preparing to serve all Euronext cash and
derivatives markets and further develop the relationship with
European and international clients as clearing members.
In June 2022, Euronext Clearing introduced a
VaR-based margin methodology for fixed-income instruments.
Furthermore, Euronext Clearing expects to expand the adoption of
VaR-based margin methodology for equity and derivatives instruments
in 2023 and 2024, enabling clearing members to better manage their
collateral requirements.
In addition, in July 2022, Euronext Clearing
reduced its investment portfolio with the aim of strengthening and
preserving its available regulatory capital and aligning the
investment strategy to the current level of market volatility and
uncertainty.
As a result, Euronext Clearing disposed of its
portfolio maturing after 1st May 2023. A post-tax loss of 35
million euros on this transaction will be recorded in Q3 2022.
Euronext Clearing decided to retain its short-term investment
portfolio maturing through April 2023 and hold these to maturity.
At the beginning of Q2 2023, Euronext Clearing will no longer have
an outright portfolio.
The capital impact reported on the sale of the
portfolio will be more than compensated by a reduction of the
regulatory capital requirement linked to the security portfolio.
Therefore, the available regulatory capital surplus at Euronext
Clearing is estimated to increase.
As the sale of the portfolio will have no
negative impact on the available capital of the Group, Euronext
decided that the dividend for the fiscal year 2022 will be adjusted
to neutralize any negative impact from this operation.
- Launch
of Tech Leaders index
On 6 July 2022, Euronext announced that it has
launched the Euronext® Tech Leaders Index, following the kick-off
of the Euronext Tech Leaders initiative in June 2022. The index
will track the performance of more than 100 Tech companies that are
part of the Euronext Tech Leaders Segment listed on one of the
seven Euronext marketplaces.
Agenda
A conference call and a
webcast will be held on 29 July
2022, at 09.00am
CEST (Paris time) /
08.00am BST (London
time):
Conference call:
To connect to the conference call, please
dial:
UK
Number: |
+44 33 0551
0200 |
NO
Number: |
+47 2 156
3318 |
FR
Number: |
+33 1 70 37 71
66 |
PT
Number: |
+351 3 0880
2081 |
NL
Number: |
+31 20 708
5073 |
IR
Number: |
+353 1 436
0959 |
US
Number: |
+1 212 999
6659 |
IT Number: |
+39 06 8336
0400 |
BE
Number: |
+32 2 789
8603 |
DE Number: |
+49 30 3001
90612 |
Password: Euronext
Live webcast:
For the live audio webcast go to:
Euronext Results webcast
The webcast will be available for replay after
the call will be available at the webcast link and on the Euronext
Investor Relations webpage.
CONTACT ANALYSTS & INVESTORS
– ir@euronext.com |
Aurélie
Cohen |
+33 1 70 48 24
27 |
ir@euronext.com |
Clément
Kubiak |
+33 1 70 48 26
33 |
ir@euronext.com |
CONTACTS MEDIA –
mediateam@euronext.com |
Aurélie Cohen
(Europe) |
+33 1 70 48 24
45 |
parispressoffice@euronext.com |
Marianne Aalders
(Amsterdam) |
+31 20 721 41
33 |
maalders@euronext.com |
Pascal Brabant
(Brussels) |
+32 2 620 15
50 |
pbrabant@euronext.com |
Sandra Machado
(Lisbon) |
+351 210 600
614 |
smachado@euronext.com |
Andrea Monzani
(Europe/Milan/Rome) |
+39 02 72 42 62
13 |
Italypressoffice@euronext.com |
Cathrine Lorvik
Segerlund (Oslo) |
+47 41 69 59
10 |
clsegerlund@euronext.com |
Sarah Mound
(Paris/Dublin) |
+33 1 70 48 24
45 |
parispressoffice@euronext.com |
About Euronext
Euronext is the leading pan-European market
infrastructure, connecting European economies to global capital
markets, to accelerate innovation and sustainable growth. It
operates regulated exchanges in Belgium, France, Ireland, Italy,
the Netherlands, Norway and Portugal. With close to 2,000 listed
equity issuers and around €5.8 trillion in market capitalisation as
of end June 2022, it has an unmatched blue chip franchise and a
strong diverse domestic and international client base. Euronext
operates regulated and transparent equity and derivatives markets,
one of Europe’s leading electronic fixed income trading markets and
is the largest centre for debt and funds listings in the world. Its
total product offering includes Equities, FX, Exchange Traded
Funds, Warrants & Certificates, Bonds, Derivatives, Commodities
and Indices. The Group provides a multi-asset clearing house
through Euronext Clearing, and custody and settlement services
through Euronext Securities central securities depositories in
Denmark, Italy, Norway and Portugal. Euronext also leverages its
expertise in running markets by providing technology and managed
services to third parties. In addition to its main regulated
market, it also operates a number of junior markets, simplifying
access to listing for SMEs.
For the latest news, go to euronext.com or
follow us on Twitter (twitter.com/euronext) and LinkedIn
(linkedin.com/euronext).
Disclaimer
This press release is for information purposes
only: it is not a recommendation to engage in investment activities
and is provided “as is”, without representation or warranty of
any kind. While all reasonable care has been taken to ensure the
accuracy of the content, Euronext does not guarantee its accuracy
or completeness. Euronext will not be held liable for any loss or
damages of any nature ensuing from using, trusting or acting on
information provided. No information set out or referred to in this
publication may be regarded as creating any right or obligation.
The creation of rights and obligations in respect of financial
products that are traded on the exchanges operated by Euronext’s
subsidiaries shall depend solely on the applicable rules of the
market operator. All proprietary rights and interest in or
connected with this publication shall vest in Euronext. This press
release speaks only as of this date. Euronext refers to Euronext
N.V. and its affiliates. Information regarding trademarks and
intellectual property rights of Euronext is available at
www.euronext.com/terms-use.
© 2022, Euronext N.V. - All rights
reserved.
The Euronext Group processes your personal data
in order to provide you with information about Euronext (the
"Purpose"). With regard to the processing of this personal data,
Euronext will comply with its obligations under Regulation (EU)
2016/679 of the European Parliament and Council of 27 April 2016
(General Data Protection Regulation, “GDPR”), and any applicable
national laws, rules and regulations implementing the GDPR, as
provided in its privacy statement available at:
www.euronext.com/privacy-policy. In accordance with the applicable
legislation you have rights with regard to the processing of your
personal data: for more information on your rights, please refer
to: www.euronext.com/data_subjects_rights_request_information. To
make a request regarding the processing of your data or to
unsubscribe from this press release service, please use our data
subject request form at
connect2.euronext.com/form/data-subjects-rights-request or email
our Data Protection Officer at dpo@euronext.com.
Appendix
Adjustments in financial
disclosure
To highlight its underlying performance, since
Q1 2022, Euronext is publishing underlying recurring costs,
adjusted EBITDA and non-recurring costs.
Euronext has removed the exceptional items line
from its financial statements. Consequently, costs previously
reported as exceptional items have from Q1 2022 been included into
their respective lines within Euronext operating expenses as
non-recurring items.
The €150 million of implementation costs to
deliver on the ‘Growth for Impact 2024’ strategic plan targets are
therefore considered as non-recurring items and will be withdrawn
from Q1 2022 from underlying recurring costs.
The computation of adjusted net income and
earnings per share has been adjusted accordingly. The computation
of reported net income and earnings per share are not impacted.
2024 strategic plan targets remain unchanged and
are not affected by this change in reporting.
The new non-IFRS indicators are defined
below.
Non-IFRS financial measures
For comparative purposes, the company provides
unaudited non-IFRS measures including:
-
Operational expenses excluding depreciation and amortisation,
underlying operational expenses excluding depreciation and
amortisation
-
EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin
Non-IFRS measures are defined as follows:
-
Operational expenses excluding depreciation and amortisation as the
total of salary and employee benefits, and other operational
expenses
-
Underlying operational expenses excluding depreciation and
amortisation as the total of salary and employee benefits, and
other operational expenses, excluding non-recurring costs
-
Non-underlying items as items of income and expense that are
material by their size and/or that are infrequent and unusual by
their nature or incidence are not considered to be incurred in the
normal course of business and are classified as non-underlying
items on the face of the income statement within their relevant
category in order to provide further understanding of the ongoing
sustainable performance of the Group.
-
Adjusted operating profit as the operating profit adjusted for any
non-underlying costs, including PPA of acquired businesses
-
EBITDA as the operating profit before depreciation and
amortisation
-
Adjusted EBITDA as the adjusted operating profit before
depreciation and amortisation adjusted for any non-underlying
operational expenses excluding depreciation and amortisation
-
EBITDA margin as EBITDA divided by total revenue and income
-
Adjusted EBITDA margin as adjusted EBITDA, divided by total revenue
and income
-
Adjusted net income, as the net income, share of the parent company
shareholders, adjusted for any non-underlying items and related tax
impact
Non-IFRS financial measures are not meant to be
considered in isolation or as a substitute for comparable IFRS
measures and should be read only in conjunction with the
consolidated financial statements.
Non-volume related revenue
definition
Non-volume related revenue includes Listing
excl. IPOs, Advanced Data Services, Custody Settlement and other
post-trade, fixed revenue from the Clearing activities (including
for instance NTI and membership fees), Investor Services,
Technology Solutions, Other Income and Transitional Revenue.
Adjusted EPS definition
in €m unless stated otherwise |
Q2 2022 |
Q2 2021 |
Net income
reported |
118.9 |
86.6 |
EPS reported (€
per share) |
1.11 |
0.88 |
Adjustments |
|
|
of which Operating expenses excluding D&A |
8.1 |
29.7 |
of which Depreciation and amortisation |
23.7 |
16.5 |
of which Net financing expense |
(0.0) |
5.7 |
of which results from equity investments |
1.5 |
4.3 |
of which Minority interest |
(0.2) |
(0.3) |
Tax related to those items |
(8.8) |
(8.0) |
Net income
adjusted |
143.2 |
134.6 |
EPS adjusted (€
per share) |
1.34 |
1.43 |
The figures in this document have not been
audited or reviewed by our external auditor
Consolidated income
statement
|
Q2 2022 |
Q2 2021 |
in € million, unless stated otherwise |
Underlying |
Non-underlying |
Reported |
Underlying |
Non-underlying |
Reported |
Revenue and
income |
374.7 |
- |
374.7 |
328.8 |
- |
328.8 |
Listing |
55.4 |
- |
55.4 |
48.2 |
- |
48.2 |
Trading revenue, of which |
129.2 |
- |
129.2 |
112.8 |
- |
112.8 |
Cash trading |
75.3 |
- |
75.3 |
70.1 |
- |
70.1 |
Derivatives trading |
14.9 |
- |
14.9 |
13.1 |
- |
13.1 |
Fixed-income trading |
24.9 |
- |
24.9 |
17.3 |
- |
17.3 |
FX trading |
7.3 |
- |
7.3 |
5.7 |
- |
5.7 |
Power Trading |
6.9 |
- |
6.9 |
6.6 |
- |
6.6 |
Investor services |
2.3 |
- |
2.3 |
2.2 |
- |
2.2 |
Advanced data services |
52.0 |
- |
52.0 |
46.5 |
- |
46.5 |
Post-trade, of which |
93.9 |
- |
93.9 |
83.4 |
- |
83.4 |
Clearing |
31.4 |
- |
31.4 |
26.6 |
- |
26.6 |
Custody & Settlement and other |
62.5 |
- |
62.5 |
56.8 |
- |
56.8 |
Euronext Technology Solutions & other revenue |
24.1 |
- |
24.1 |
22.9 |
- |
22.9 |
Net Financing Income through CCP business |
15.7 |
- |
15.7 |
9.6 |
- |
9.6 |
Other income |
1.0 |
- |
1.0 |
1.4 |
- |
1.4 |
Transitional revenues |
0.9 |
- |
0.9 |
1.9 |
- |
1.9 |
Operating expenses excluding D&A |
(153.0) |
(8.1) |
(161.1) |
(131.4) |
(29.7) |
(161.2) |
Salaries and employee benefits |
(76.8) |
(1.1) |
(77.9) |
(69.4) |
(2.8) |
(72.2) |
Other operational expenses, of which |
(76.1) |
(7.0) |
(83.2) |
(62.0) |
(26.9) |
(88.9) |
System & communication |
(29.4) |
(1.7) |
(31.0) |
(22.7) |
(0.1) |
(22.8) |
Professional services |
(14.5) |
(4.8) |
(19.4) |
(16.0) |
(4.1) |
(20.1) |
Clearing expense |
(9.0) |
- |
(9.0) |
(8.7) |
- |
(8.7) |
Accommodation |
(3.3) |
(0.0) |
(3.3) |
(2.4) |
(0.0) |
(2.4) |
Other operational expenses |
(19.9) |
(0.5) |
(20.4) |
(12.3) |
(22.7) |
(35.0) |
EBITDA |
221.7 |
(8.1) |
213.6 |
197.4 |
(29.7) |
167.6 |
EBITDA margin |
59.2% |
|
57.0% |
60.0% |
|
51.0% |
Depreciation & amortisation |
(14.8) |
(23.7) |
(38.5) |
(14.7) |
(16.5) |
(31.2) |
Total expenses |
(167.8) |
(31.8) |
(199.6) |
(146.2) |
(46.2) |
(192.4) |
Operating profit |
206.9 |
(31.8) |
175.1 |
182.6 |
(46.2) |
136.4 |
Net financing income / (expense) |
(9.1) |
0.0 |
(9.1) |
(7.3) |
(5.7) |
(13.0) |
Results from equity investment |
2.8 |
(1.5) |
1.2 |
6.6 |
(4.3) |
2.3 |
Profit before
income tax |
200.6 |
(33.4) |
167.2 |
181.9 |
(56.2) |
125.7 |
Income tax expense |
(54.1) |
8.8 |
(45.2) |
(45.2) |
8.0 |
(37.2) |
Non-controlling interests |
(3.3) |
0.2 |
(3.1) |
(2.2) |
0.3 |
(1.9) |
Net income, share of the parent company
shareholders |
143.2 |
(24.3) |
118.9 |
134.6 |
(47.9) |
(86.6) |
EPS (basic, in €) |
1.34 |
|
1.11 |
1.43 |
|
0.88 |
EPS (diluted, in €) |
1.34 |
|
1.11 |
1.43 |
|
0.88 |
The figures in this document have not been
audited or reviewed by our external auditor
Consolidated comprehensive income
statement
|
Q2 2022 |
Q2 2021 |
Profit for the period |
122.0 |
88.6 |
|
|
|
Other comprehensive
income |
|
|
Items that may be reclassified to profit or loss: |
|
|
– Exchange differences on translation of foreign operations |
(41.4) |
(16.5) |
– Income tax impact on exchange differences on translation of
foreign operations |
4.0 |
1.9 |
– Change in value of debt investments at fair value through other
comprehensive income |
(31.6) |
(0.1) |
– Income tax impact on change in value of debt investments at fair
value through other comprehensive income |
9.1 |
0.0 |
|
|
|
Items that will not be reclassified to profit or loss: |
|
|
– Change in value of equity investments at fair value through other
comprehensive income |
34.8 |
3.6 |
– Income tax impact on change in value of equity investments at
fair value through other comprehensive income |
(7.7) |
(0.7) |
– Remeasurements of post-employment benefit obligations |
10.9 |
3.4 |
– Income tax impact on remeasurements of post-employment benefit
obligations |
(1.3) |
(0.4) |
Other comprehensive income for the period, net of tax |
(23.1) |
(8.8) |
Total comprehensive income for the period |
98.9 |
79.8 |
|
|
|
Comprehensive income
attributable to: |
|
|
– Owners of the parent |
96.8 |
78.1 |
– Non-controlling interests |
2.1 |
1.7 |
The figures in this document have not been
audited or reviewed by our external auditor
Consolidated balance sheet
in €
million |
30 June 2022 |
31 March 2022 |
Non-current
assets |
|
|
Property, plant and equipment |
103.8 |
100.0 |
Right-of-use assets |
53.2 |
59.2 |
Goodwill and other intangible assets |
6,145.1 |
6,184.8 |
Deferred income tax assets |
49.8 |
41.1 |
Investments in associates and joint ventures |
67.0 |
72.4 |
Financial assets at fair value through OCI |
291.6 |
257.6 |
Other non-current assets |
9.3 |
4.2 |
Total non-current
assets |
6,719.7 |
6,719.4 |
|
|
|
Current assets |
|
|
Trade and other receivables |
583.7 |
607.8 |
Income tax receivable |
15.6 |
9.0 |
Derivative financial instruments |
0.1 |
2.2 |
CCP clearing business assets |
168,663.0 |
167,265.0 |
Other current financial assets |
142.6 |
168.1 |
Cash & cash equivalents |
946.6 |
1,154.8 |
Total current
assets |
170,351.6 |
169,206.9 |
|
|
|
Assets from disposal groups held for sale |
4.7 |
5.5 |
Total assets |
177,076.0 |
175,931.8 |
|
|
|
Equity |
|
|
Shareholders' equity |
3,697.6 |
3,805.1 |
Non-controlling interests |
82.9 |
89.5 |
Total Equity |
3,780.6 |
3,894.7 |
|
|
|
Non-current
liabilities |
|
|
Borrowings |
3,024.9 |
3,034.9 |
Lease liabilities |
33.4 |
40.2 |
Deferred income tax liabilities |
584.6 |
587.2 |
Post-employment benefits |
20.7 |
32.2 |
Contract liabilities |
68.9 |
68.6 |
Other provisions |
7.8 |
9.0 |
Total Non-current
liabilities |
3,740.2 |
3,772.1 |
|
|
|
Current liabilities |
|
|
Borrowings |
3.4 |
24.2 |
Lease liabilities |
24.5 |
26.0 |
CCP clearing business liabilities |
168,696.5 |
167,267.2 |
Income tax payable |
41.9 |
69.5 |
Trade and other payables |
675.1 |
735.2 |
Contract liabilities |
112.0 |
140.6 |
Other provisions |
1.0 |
1.4 |
Total Current
liabilities |
169,554.5 |
168,264.1 |
|
|
|
Liabilities from disposal groups held for sale |
0.7 |
1.1 |
Total equity and
liabilities |
177,076.0 |
175,931.8 |
The consolidated Balance Sheet per 30 June 2022
includes the Euronext Clearing (CC&G) business assets and
liabilities
The figures in this document have not been
audited or reviewed by our external auditor
Consolidated statement of cash
flows
in €
million |
Q2 2022 |
Q2 2021 |
Profit before
tax |
167.2 |
125.7 |
Adjustments for: |
- |
- |
- Depreciation and amortisation |
38.5 |
31.2 |
- Share based payments |
4.4 |
2.5 |
- Share of profit from associates and joint ventures |
(1.2) |
1.1 |
- Changes in working capital |
(50.3) |
(84.3) |
|
|
|
Cash flow from operating activities |
158.7 |
76.2 |
Income tax paid |
(81.8) |
(77.5) |
Net cash flows from operating activities |
76.8 |
(1.3) |
|
|
|
Cash flow from investing activities |
|
|
Acquisition of subsidiaries, net of cash acquired |
(11.7) |
(4,127.2) |
Proceeds from sale of subsidiary |
- |
2.6 |
Purchase of current financial assets |
(6.4) |
(17.4) |
Redemption of current financial assets |
23.7 |
31.9 |
Purchase of property, plant and equipment |
(8.9) |
(2.3) |
Purchase of intangible assets |
(14.9) |
(8.9) |
Proceeds from sale of property, plant, equipment and intangible
assets |
0.0 |
(0.1) |
Dividends received from equity investments |
- |
3.4 |
Dividends received from associates |
6.7 |
- |
Net cash flow from investing activities |
(11.4) |
(4,118.0) |
|
|
|
Cash flow from financing activities |
|
|
Proceeds from borrowings, net of transaction fees |
- |
5,472.8 |
Repayment of borrowings, net of transaction fees |
- |
(3,682.9) |
Interest paid |
(28.7) |
(15.1) |
Interest received |
5.7 |
5.0 |
Settlment of derivatives financial instruments |
(8.9) |
- |
Issuance new shares, net of transaction fees |
- |
2,373.4 |
Payment of lease liabilities |
(7.6) |
(5.7) |
Acquisitions of own shares |
0.7 |
(0.1) |
Employee Share transactions |
(3.4) |
(3.8) |
Dividends paid to the company's shareholders |
(206.0) |
(157.2) |
Dividends paid to non-controlling interests |
(3.1) |
(2.5) |
Net cash flow from financing activities |
(251.4) |
3,984.0 |
|
|
|
Total cash flow over the period |
(186.0) |
(135.3) |
Cash and cash equivalents - Beginning of period |
1,157.1 |
759.2 |
Non cash exchange gains/(losses) on cash and cash equivalents |
(22.1) |
(3.3) |
Cash and cash equivalents - End of period |
949.1 |
620.5 |
The figures in this document have not been
audited or reviewed by our external auditor
Last twelve months pro forma income
statement
For informative purpose only, the financial
information provided below have not been audited or reviewed by our
external auditor
in €
million |
Q2 2021 Pro
forma |
Q3 2021 Reported |
Q4 2021
Reported |
Q1 2022 Reported |
Q2 2022
Reported |
Last 12 months |
Revenue and income |
371.9 |
350.6 |
370.1 |
395.7 |
374.7 |
1,491.1 |
Listing |
51.4 |
50.8 |
51.9 |
55.4 |
55.4 |
213.5 |
Trading Revenue |
|
|
|
|
|
|
of which Cash trading |
74.3 |
75.0 |
79.3 |
94.0 |
75.3 |
323.6 |
of which Derivatives trading |
13.8 |
13.5 |
14.2 |
16.1 |
14.9 |
58.7 |
of which Fixed income trading |
24.3 |
23.8 |
24.2 |
24.4 |
24.9 |
97.3 |
of which FX spot trading |
5.7 |
5.6 |
6.1 |
7.2 |
7.3 |
26.1 |
of which Power trading |
6.6 |
6.3 |
8.5 |
9.1 |
6.9 |
30.8 |
Investor Services |
2.2 |
2.1 |
2.3 |
2.2 |
2.3 |
8.9 |
Advanced Data Services |
50.8 |
49.8 |
50.7 |
52.6 |
52.0 |
205.2 |
Post trade |
|
|
|
|
|
|
of which Clearing |
29.8 |
27.5 |
30.1 |
31.9 |
31.4 |
121.0 |
of which Settlement & Custody |
62.5 |
55.6 |
60.7 |
63.9 |
62.5 |
242.7 |
Market solutions & other revenues |
26.3 |
24.4 |
26.4 |
23.1 |
24.1 |
98.0 |
Net treasury income through CCP Business |
13.7 |
12.9 |
12.9 |
13.4 |
15.7 |
54.9 |
Other income |
1.5 |
0.8 |
0.6 |
0.7 |
1.0 |
3.2 |
Transitional revenue |
9.0 |
2.3 |
2.0 |
1.7 |
0.9 |
7.0 |
Operating expenses excluding D&A |
(182.2) |
(149.0) |
(170.6) |
(149.1) |
(161.1) |
(629.7) |
Underlying operating expenses excluding
D&A |
(149.1) |
(141.5) |
(156.6) |
(143.6) |
(153.0) |
(594.7) |
Adjusted EBITDA |
216.218 |
209.1 |
213.4 |
252.2 |
221.7 |
896.4 |
Adjusted EBITDA margin |
59.2% |
59.6% |
57.7% |
63.7% |
59.2% |
60.1% |
EBITDA |
189.8 |
201.6 |
199.5 |
246.7 |
213.6 |
861.4 |
D&A |
(38.0) |
(38.5) |
(48.9) |
(40.2) |
(38.5) |
(166.1) |
Total expenses |
(220.2) |
(187.5) |
(219.4) |
(189.3) |
(199.6) |
(795.9) |
Operating profit |
151.7 |
163.1 |
150.6 |
206.4 |
175.1 |
695.2 |
Adjusted operating profit |
199.7 |
191.3 |
194.1 |
233.7 |
206.9 |
824.8 |
Net financing income/(expense) |
(14.6) |
(7.3) |
(6.7) |
(9.9) |
(9.1) |
(33.0) |
Results from Equity investments |
2.3 |
11.8 |
7.3 |
3.1 |
1.2 |
23.5 |
Income tax |
(41.9) |
(48.5) |
(35.7) |
(52.0) |
(45.2) |
(181.5) |
Tax rate |
30.0% |
29.0% |
23.6% |
26.1% |
27.1% |
26.5% |
Non-controlling interests |
(2.9) |
(3.2) |
(2.9) |
(3.8) |
(3.1) |
(13.0) |
Reported net income, share of the parent company
shareholders |
94.6 |
115.8 |
112.7 |
143.8 |
118.9 |
491.2 |
Adjusted net income, share of the parent company
shareholders |
- |
137.0 |
144.6 |
164.4 |
143.2 |
588.3 |
Volumes for the
second quarter of 2022
|
Q2 2022 |
Q2 2021 |
%var |
Number of trading
days |
63 |
63 |
|
Number of transactions (buy and sells, inc. reported
trades) |
Total Cash Market |
215,415,316 |
209,001,506 |
+3.1% |
ADV Cash
Market |
3,419,291 |
3,317,484 |
+3.1% |
Transaction value ( € million, single
counted) |
|
|
|
Total Cash Market |
732,533 |
709,089 |
+3.3% |
ADV Cash
Market |
11,628 |
11,255 |
+3.3% |
|
|
|
|
Listings |
|
|
|
Number of Issuers on Equities |
|
|
|
Euronext |
1,949 |
1,893 |
+3.0% |
SMEs |
1,545 |
1,469 |
+5.2% |
Number of
Listed Securities |
|
|
|
Funds |
2,862 |
3,749 |
-23.7% |
ETFs |
3,767 |
3,084 |
+22.1% |
Bonds |
52,582 |
52,363 |
+0.4% |
|
|
|
|
Capital raised on primary and secondary
market |
|
|
|
Total Euronext, in €m |
|
|
|
Number of new
equity listings |
19 |
63 |
|
Money Raised -
New equity listings (incl over allotment) |
1,069 |
7,006 |
-84.7% |
Money Raised -
Follow-ons on equities |
11,079 |
26,551 |
-58.3% |
Money Raised -
Bonds |
241,740 |
405,383 |
-40.4% |
Total Money
Raised |
253,887 |
438,940 |
-42.2% |
|
|
|
|
of
which SMEs |
|
|
|
Number of new
equity listings |
17 |
60 |
|
Money Raised -
New equity listings (incl over allotment) |
1,069 |
4,154 |
-74.3% |
Money Raised -
Follow-ons on equities |
2,652 |
6,460 |
-58.9% |
Money Raised -
Bonds |
1,264 |
863 |
+46.5% |
Total Money
Raised |
4,985 |
11,476 |
-56.6% |
2021 data is published on a pro forma basis to
include the trading activities of the Borsa Italiana Group. 2021
data has been restated accordingly.
|
Q2
2022 |
Q2
2021 |
% var |
Transaction value (€ million, single counted) |
|
|
|
MTS |
|
|
|
ADV MTS
Cash |
22,063 |
26,530 |
-16.8% |
TAADV MTS
Repo |
347,540 |
278,023 |
+25.0% |
Other fixed
income |
|
|
|
ADV Fixed
income |
1,015 |
960 |
+5.8% |
|
Q2 2022 |
Q2 2021 |
% var |
Number of
trading days |
65 |
65 |
|
FX volume ($m, single counted) |
|
|
|
Total Euronext
FX |
1,536,514 |
1,210,108 |
+27.0% |
ADV Euronext
FX |
23,639 |
18,617 |
+27.0% |
|
Q2 2022 |
Q2 2021 |
% var |
Number of
trading days |
91 |
91 |
|
Power volume (in TWh) |
|
|
|
ADV Day-ahead
Power Market |
2.52 |
2.17 |
+15.9% |
ADV Intraday
Power Market |
0.09 |
0.07 |
+27.5% |
|
Q2
2022 |
Q2
2021 |
%
var |
Number of
trading days |
63 |
63 |
|
Derivatives Volume (in lots) |
|
|
|
|
|
|
|
Equity |
41,518,677 |
43,561,859 |
-4.7% |
Index |
15,530,437 |
13,841,692 |
+12.2% |
Futures |
11,024,029 |
9,592,820 |
+14.9% |
Options |
4,506,408 |
4,248,872 |
+6.1% |
Individual Equity |
25,988,240 |
29,720,167 |
-12.6% |
Futures |
5,458,194 |
9,139,611 |
-40.3% |
Options |
20,530,046 |
20,580,556 |
-0.2% |
|
|
|
|
Commodity |
4,495,621 |
4,704,593 |
-4.4% |
Futures |
3,777,378 |
4,231,502 |
-10.7% |
Options |
718,243 |
473,091 |
+51.8% |
|
|
|
|
Total Euronext |
46,014,298 |
48,266,452 |
-4.7% |
Total Futures |
20,259,601 |
22,963,933 |
-11.8% |
Total Options |
25,754,697 |
25,302,519 |
+1.8% |
|
|
|
|
Derivatives ADV (in lots) |
|
|
|
Equity |
659,027 |
691,458 |
-4.7% |
Index |
246,515 |
219,709 |
+12.2% |
Futures |
174,985 |
152,267 |
+14.9% |
Options |
71,530 |
67,442 |
+6.1% |
Individual Equity |
412,512 |
471,749 |
-12.6% |
Futures |
86,638 |
145,073 |
-40.3% |
Options |
325,874 |
326,675 |
-0.2% |
|
|
|
|
Commodity |
71,359 |
74,676 |
-4.4% |
Futures |
59,958 |
67,167 |
-10.7% |
Options |
11,401 |
7,509 |
+51.8% |
|
|
|
|
Total Euronext |
730,386 |
766,134 |
-4.7% |
Total Futures |
321,581 |
364,507 |
-11.8% |
Total Options |
408,805 |
401,627 |
+1.8% |
2021 data is published on a pro forma basis to
include the trading activities of the Borsa Italiana Group. 2021
data has been restated accordingly.
-
Derivatives open interest
|
30 June
2022 |
30 June
2021 |
% var |
Open interest (in
lots) |
|
|
|
|
|
|
|
Equity |
24,729,470 |
22,348,637 |
+10.7% |
Index |
1,352,560 |
1,570,320 |
-13.9% |
Futures |
651,548 |
738,527 |
-11.8% |
Options |
701,012 |
831,793 |
-15.7% |
Individual Equity |
23,376,910 |
20,778,317 |
+12.5% |
Futures |
752,598 |
2,059,049 |
-63.4% |
Options |
22,624,312 |
18,719,268 |
+20.9% |
|
|
|
|
Commodity |
1,099,109 |
988,675 |
+11.2% |
Futures |
643,132 |
683,545 |
-5.9% |
Options |
455,977 |
305,130 |
+49.4% |
|
|
|
|
Total Euronext |
25,828,579 |
23,337,312 |
+10.7% |
Total Futures |
2,047,278 |
3,481,121 |
-41.2% |
Total Options |
23,781,301 |
19,856,191 |
+19.8% |
2021 data is published on a pro forma basis to
include the trading activities of the Borsa Italiana Group. 2021
data has been restated accordingly.
1 The variances on pro forma basis assume that the acquisition
of the Borsa Italiana Group took place on 1 January 2021 and
therefore include the Borsa Italiana Group financial performance
for the entire comparative period. The Borsa Italiana Group
financials were consolidated from 29 April 2021.2 Q2 2021 pro forma
includes €6.5 million of non-underlying transitional income related
to the Borsa Italiana Group acquisition in April 2021, prior to the
acquisition3 Definition in appendix – Adjusted for non-underlying
operating expenses excluding D&A4 Definition in appendix5 Basic
weighted average number of shares at 106,616,256 for H1 2022, H1
2021 basic outstanding shares at 85,094,834 shares.6 Like-for-like
revenue at constant currencies excludes in 2021 and 2022 the Borsa
Italiana Group, Centevo and OMS as well as related integration
costs. 7 Last twelve months EBITDA pro forma the Borsa Italiana
Group, reported EBITDA including costs previously reported as
exceptional items8 Science-Based targets initiative. More
information in the corporate highlights section of this document
and at:
https://www.euronext.com/en/about/media/euronext-press-releases/euronext-announces-its-science-based-climate-targets 9
More information in the corporate highlights section of this
document and at:
https://www.euronext.com/en/about/media/euronext-press-releases/euronext-clearing-introduces-new-var-based-margin-methodology10
More information in the corporate highlights section of this
document and at:
https://www.euronext.com/en/about/media/euronext-press-releases/euronext-announces-acquisition-technology-businesses-nexis11
Q2 2021 pro forma excludes €6.5 million of non-underlying
transitional income related to the Borsa Italiana Group acquisition
in April 2021, prior to the acquisition12 For the total adjustments
performed please refer to the appendix of this press release13 Q2
2021 pro forma includes €6.5 million of non-underlying transitional
income related to the Borsa Italiana Group acquisition
14 Considered scope: Euronext, LSE, Nasdaq Nordic, Deutsche
Börse, SIX & BME. Sources: Internal data for Euronext, Dealogic
for others15 According to the WFE (World Federation of
Exchanges) Money raised figures have been restated1
Source of the EBBO presence: BMLL
17 Euronext is expecting to obtain validation of
the targets by the SBTi by the end of 2022
18 Q2 2021 pro forma included €6.5 million of non-underlying
revenue in transitional income.19 2021 data is published on a pro
forma basis to include the trading activities of the Borsa Italiana
Group. 2021 data has been restated accordingly.20 Cash Market
includes shares, warrants, ETFs. Following the acquisition of the
Borsa Italiana Group, Euronext fixed income trading activity is now
reported under Fixed income markets. 2021 data has been restated
accordingly21 Q1 2021 data is published on a pro forma basis to
include the trading activities of the Borsa Italiana Group.
- 20220728_Euronext_PR_Q222_VF
Euronext NV (EU:ENX)
Historical Stock Chart
From Jun 2024 to Jul 2024
Euronext NV (EU:ENX)
Historical Stock Chart
From Jul 2023 to Jul 2024