Euronext publishes Q3 2021 results
Euronext publishes Q3
2021 results
Strong revenue
growth, driven by double
digit organic growth in
listing, trading
and clearing activities,
and significant
contribution of
the Borsa
Italiana
Group.
Amsterdam, Brussels, Dublin, Lisbon,
Milan, Oslo and Paris –
4 November 2021
– Euronext, the leading pan-European market infrastructure,
today publishes its results for the third quarter of 2021.
-
Revenue and income at
€350.6 million
(+€145.8
million,
+71.2%,
+10.2% like-for-like1):
- Borsa Italiana Group contributed
€121.1 million to revenue for full quarter of consolidation.
- Trading revenue grew to €124.2
million (+63.6%), primarily driven by the consolidation of Borsa
Italiana capital markets, as well as increased cash equity volumes
combined with strong yield. Fixed income trading revenue increased
to €23.8 million, driven by double-digit growth in MTS cash
trading activities.
- Post-trade revenue grew to €83.1
million (+86.2%), mainly due to the consolidation of the Italian
CSD, Monte Titoli, and of the clearing activities of the Italian
CCP, CC&G. Custody and settlement revenue growth in the Nordic
CSDs was less dynamic than previous quarters reflecting notably
normalised levels of retail activity. Clearing revenue increased to
€27.5 million. Net treasury income generated by CC&G was €12.9
million.
- Advanced Data Services revenue grew
to €49.8 million (+44.3%) due to robust index and core data
businesses and the consolidation of the Borsa Italiana Group data
activities.
- Listing revenue grew to €50.8
million (+42.1%), resulting from strengthened leading position for
the listing of equities, with 51 listings, and of ETFs, together
with the continued growth of Euronext Corporate Services, and the
consolidation of the Borsa Italiana Group.
- Non-volume related revenue
accounted for 55% of Q3 2021 total revenue (vs 54% in Q3 2020) and
covered 131% of operating expenses, excluding D&A (vs. 128% in
Q3 2020).
- EBITDA
at
€203.0
million
(+€85.3
million,
+72.4%,
+13.7%
like-for-like), EBITDA margin
at 57.9%
(+0.4pts);
EBITDA margin like-for-like at
60.4%
(+1.8pts):
- Operating expenses,
excluding D&A, grew to €147.6 million (+69.5%) as a result of
the consolidation of costs from acquired businesses, for €54.8
million, and costs related to the integration of the Borsa Italiana
Group, as previously announced.
- Reported
net income, share of the parent
company shareholders, at
€115.8 million
(+€45.6 million,
+64.9%):
- Exceptional items were €2.0 million
and net financing expenses were €7.3 million.
- Results from equity investments
amounted to €11.8 million mainly resulting from a received dividend
of €9.2 million.
- Income tax rate was 29.0%.
-
Adjusted EPS2
at €1.21
(+18.1%)3.
Key figures - in €m, unless stated otherwise |
Q3
2021 |
Q3 2020 |
% change |
% change(like-for-like, constant currencies) |
Revenue |
350.6 |
204.8 |
+71.2% |
+10.2% |
Operational expenses excluding D&A |
(147.6) |
(87.1) |
+69.5% |
+5.3% |
EBITDA |
203.0 |
117.8 |
+72.4% |
+13.7% |
EBITDA margin |
57.9% |
57.5% |
+0.4pt |
+1.8pt |
Net income, share of the parent
company shareholders |
115.8 |
70.2 |
+64.9% |
|
EPS (non-diluted, reported, in €) |
1.08 |
0.92 |
+17.1% |
|
EPS (diluted, reported, in €) |
1.08 |
0.92 |
+17.2% |
|
EPS (non-diluted, adjusted, in €) |
1.21 |
1.02 |
+18.1% |
|
Stéphane Boujnah, Chief Executive Officer and
Chairman of the Managing Board of Euronext, said:
“In the third quarter of 2021, Euronext revenue
grew by 71.2% to reach €350.6 million, driven by double-digit
organic revenue growth, especially in listing, trading and clearing
activities, and the continued good performance of Borsa Italiana,
MTS, CC&G and Monte Titoli. EBITDA grew faster than revenue,
to €203.0 million, thanks to a strong cost discipline to
limit the impact of integration costs. Adjusted EPS increased
by 18.1% to €1.21 per share as a result of this solid operating
performance.
We confirmed again this quarter Euronext’s
position as the leading listing venue in Europe, for equity, debt
and ETFs. We welcomed 51 new equity listings, including 21 Tech
companies IPOs, and 97 new ETFs. We launched mid-October, together
with Borsa Italiana, the MIB ESG index, the first ESG blue-chip
index for Italy following the launch of the CAC 40 ESG earlier this
year.
We are pleased to welcome Fabrizio Testa as CEO
of the Borsa Italiana Group, Head of Fixed Income trading for the
Group, and member of the Managing Board of Euronext N.V. as of 28
November 2021.
Euronext’s new strategic plan, including 2024
financial guidance, will be presented on 9 November
in Milan.”
Euronext Q3 2021
financial performance
In €m, unless stated otherwiseThe figures in this
document have not been audited or reviewed by our external
auditor. |
Q3 2021 |
Q3 2020 |
% change |
% change(like-for-like, constant currencies) |
Revenue and income |
350.6 |
204.8 |
+71.2% |
+10.2% |
Listing |
50.8 |
35.8 |
+42.1% |
+11.7% |
Trading
revenue |
124.2 |
75.9 |
+63.6% |
+11.5% |
o/w Cash trading |
75.0 |
52.5 |
+42.7% |
+17.0% |
o/w Derivatives trading |
13.5 |
10.8 |
+25.9% |
+2.6% |
o/w Fixed income trading |
23.8 |
0.5 |
n/a |
-18.7% |
o/w Spot FX trading |
5.6 |
5.8 |
-4.2% |
-3.4% |
o/w Power trading |
6.3 |
6.3 |
-0.0% |
-3.3% |
Investor
Services |
2.1 |
2.0 |
+9.3% |
+24.0% |
Advanced Data
Services |
49.8 |
34.5 |
+44.3% |
+4.5% |
Post
Trade |
83.1 |
44.6 |
+86.2% |
+11.4% |
o/w Clearing |
27.5 |
14.9 |
+85.3% |
+14.8% |
o/w Custody, Settlement and other Post-trade |
55.6 |
29.8 |
+86.7% |
+8.7% |
Euronext
Technologies & Other revenue |
24.4 |
11.9 |
+104.3% |
+6.8% |
Net treasury
income through CCP Business |
12.9 |
0.0 |
n/a |
n/a |
Other
income |
0.8 |
0.0 |
n/a |
n/a |
Transitional revenue |
2.3 |
0.0 |
n/a |
n/a |
Operational expenses excluding D&A |
(147.6) |
(87.1) |
+69.5% |
+5.3% |
o/w Salaries and employee benefits |
(72.9) |
(48.3) |
+51.0% |
+9.6% |
o/w Other expenses |
(74.7) |
(38.8) |
+92.6% |
+0.1% |
EBITDA |
203.0 |
117.8 |
+72.4% |
+13.7% |
EBITDA margin |
57.9% |
57.5% |
+0.4pt |
+1.8pt |
Depreciation & amortisation |
(37.9) |
(15.4) |
+145.8% |
-2.7% |
Operating profit before exceptional items |
165.1 |
102.3 |
+61.3% |
+16.0% |
Exceptional items |
(2.0) |
(3.5) |
-43.2% |
|
Operating profit |
163.1 |
98.8 |
+65.1% |
|
Net financing income / (expense) |
(7.3) |
(3.4) |
+113.8% |
|
Results from equity investments |
11.8 |
1.8 |
+543.1% |
|
Profit before
income tax |
167.6 |
97.2 |
+72.4% |
|
Income tax expense |
(48.5) |
(25.6) |
+89.5% |
|
Share of non-controlling interests |
(3.2) |
(1.4) |
+135.0% |
|
Net income, share of the parent company
shareholders |
115.8 |
70.2 |
+64.9% |
|
Reported EPS (€ per share) |
1.08 |
0.92 |
+17.1% |
|
Adjusted EPS (€ per share) |
1.21 |
1.02 |
+18.1% |
|
Revenue
In the third quarter of 2021, Euronext
consolidated revenue and income increased to €350.6 million, up
+71.2%, primarily resulting from (i) the first full quarter of
consolidation of the Borsa Italiana Group and from (ii) double
digit organic growth especially in listing, trading and clearing
activities, partially offsetting lower custody and settlement
activity. As a reminder, VP Securities was consolidated from 4
August 2020. On a like-for-like basis and at constant currencies,
Euronext consolidated revenue and income grew double-digit (+10.2%)
in Q3 2021, at €213.4 million, compared to Q3 2020.
Non-volume related revenue accounted for 55% of
total Group revenue in Q3 2021, compared to 54% in Q3 2020,
reflecting the expanded post-trade business. The operating
cost coverage ratio was at 131% in Q3 2021, compared to 128% in Q3
2020.
EBITDA
Operational expenses excluding depreciation
& amortisation increased to €147.6 million, up +69.5%,
primarily as a result of the consolidation of the costs from the
Borsa Italiana Group, VP Securities (until 4 August) and 3Sens
(part of Corporate Services) for €54.8 million, as well as
integration costs. On a like-for-like basis, operational expenses
excluding depreciation & amortisation increased by +5.3%
compared to Q3 2020.
Consequently, EBITDA for the quarter was up at
€203.0 million, representing an EBITDA margin of 57.9%, up +0.4
points compared to Q3 2020, despite integration activity. On a
like-for-like basis, EBITDA for Q3 2021 was up +13.7%, to €128.9
million, and EBITDA margin was 60.4%, up 1.8 points compared to the
same perimeter in Q3 2020.
Net income, share of
the parent company shareholders
Depreciation and amortisation accounted for
€37.9 million in Q3 2021, up +145.8%, resulting mainly from the
consolidation of the Borsa Italiana Group, including its related
PPA for €14.0 million (for a full quarter of consolidation). On a
like-for-like basis, depreciation & amortisation was down -2.7%
compared to Q3 2020 at €13.7 million.
Operating profit before exceptional items was
€165.1 million, a +61.3% increase compared to Q3 2020. On a
like-for-like basis, operating profit before exceptional items was
up +16.0% compared to Q3 2020, at €115.2 million.
€2.0 million of exceptional costs were reported
in Q3 2021, mainly related to the Borsa Italiana Group transaction
acquisition.
Net financing expense for Q3 2021 was €7.3
million compared to a net financing expense of €3.4 million in
Q3 2020. This increase results from the costs of the newly issued
debt in relation with the financing of the acquisition of the Borsa
Italiana Group
Results from equity investments amounted to
€11.8 million in Q3 2021, reflecting a dividend received from
Euroclear, accounting for the payment of the 2020 dividend (€9.2
million), and the contribution from LCH SA, in which Euronext owns
an 11.1% stake. As a reminder, in Q3 2020, Euronext reported
€1.8 million of results from equity investments solely
reflecting the contribution from LCH SA.
Income tax for Q3 2021 was €48.5 million. This
translated into an effective tax rate of 29.0% for the quarter (Q3
2020: €25.6 million and 26.4% respectively), impacted by
non-deductible exceptional costs.
Share of non-controlling interests mainly
relating to the Borsa Italiana Group and Nord Pool amounted to €3.2
million in Q3 2021.
As a result, the reported net income, share of
the parent company shareholders, for Q3 2021 increased by +64.9%
compared to Q3 2020, to €115.8 million. This represents a reported
EPS of €1.08 basic and fully diluted in Q3 2021, compared to
€0.92 basic and fully diluted in Q3 20204. The number of shares
used was 92,447,841 for the basic calculation and 92,678,838 for
the fully diluted calculation5.
Adjusted EPS is up +18.1% in Q3 2021, at €1.21
per share, compared to an adjusted EPS of €1.02 per share in Q3
2020.
In Q3 2021, Euronext reported a net cash flow
from operating activities of €213.5 million, compared to €71.7
million in Q3 2020, reflecting higher positive changes in working
capital. Excluding the impact on working capital from CC&G and
Nord Pool CCP activities, net cash flow from operating activities
accounted for 86% of EBITDA in Q3 2021.
Q3 2021 Business
highlights
Listing
in €m, unless stated otherwise |
Q3 2021 |
Q3 2020 |
% change |
Listing revenue |
50.8 |
35.8 |
+42.1% |
Equity |
24.6 |
16.8 |
+46.6% |
Annual fees |
15.1 |
8.8 |
+72.3% |
Follow-ons |
3.8 |
5.3 |
-28.1% |
IPOs |
5.7 |
2.7 |
+108.8% |
Debts |
9.3 |
8.4 |
+10.6% |
ETFs, Funds & Warrants |
5.5 |
2.8 |
+94.7% |
Corporate Services |
9.0 |
7.8 |
+16.1% |
Elite and Other |
2.4 |
(0.0) |
n/a |
Money raised |
380,720 |
223,284 |
+70.5% |
Listing revenue was €50.8 million in Q3 2021, an
increase of +42.1% compared to Q3 2020, driven by record in equity
listing, positive traction of ESG bond listing and the performance
of Euronext Corporate Services despite the usual slower summer
months. On a like-for-like basis at constant currencies, listing
revenue increased by +11.7% compared to Q3 2020. Euronext
confirmed its position as the
leading listing venue in Europe, with
154 listings over the
first nine months of 2021.
The third quarter of 2021 saw the strong primary
equity listing dynamic continue, with 51 new listings on Euronext,
including five large company listings (Universal Music Group,
Azelis Group, Antin Infrastructure Partners, Majorel Group and
Exclusive networks) and six SPACs. Euronext continues to
demonstrate its strong value proposition for innovative companies
with most listings being tech companies. In Q3 2021, €4.8 billion
was raised on Euronext primary markets, and quadrupled, compared to
€926 million in Q3 2020.
Euronext was the
leading exchange in Europe for the listing
of ETFs, for the third quarter in
a row.
Secondary markets reported a solid third quarter
of 2021, with €39.7 billion raised in secondary equity issues,
compared to €9.4 billion in Q3 2020.
Debt listing activity was solid in Q3 2021,
notably supported by the continued momentum in ESG bond listing. In
Q3 2021, €336.2 billion in debt was raised on Euronext’s markets,
compared to €212.9 billion in Q3 2020.
In total, €380.7 billion in equity and debt was
raised on Euronext’s markets in Q3 2021, compared to €223.3 billion
in Q3 2020.
Euronext Corporate Services reported a strong
performance, generating €9.0 million in revenue in Q3 2021,
increasing from €7.8 million in Q3 2020. This performance results
from continued commercial development and an enhanced digital
offering meeting high demand for digital solutions, despite the
seasonality impact of slower summer months.
Trading
in €m, unless stated otherwise |
Q3 2021 |
Q3 2020 |
% change |
Trading revenue |
124.2 |
75.9 |
+63.6% |
Cash trading revenue |
75.0 |
52.5 |
+42.7% |
ADV Cash market |
10,861 |
9,478 |
+14.6% |
|
|
|
|
Derivatives trading revenue |
13.5 |
10.8 |
+25.9% |
ADV Derivatives market (in lots) |
666,537 |
626,336 |
+6.4% |
|
|
|
|
Fixed income trading
revenue6 |
23.8 |
0.5 |
n/a |
ADV MTS Cash |
23,388 |
14,049 |
+66.5% |
TAADV MTS
Repo |
281,898 |
288,618 |
-2.3% |
ADV other
fixed income |
673 |
949 |
-29.0% |
|
|
|
|
Spot FX trading revenue |
5.6 |
5.8 |
-4.2% |
ADV spot FX Market (in USDm) |
17,509 |
19,322 |
-9.4% |
|
|
|
|
Power trading revenue |
6.3 |
6.3 |
- |
ADV Day-ahead power market (in TWH) |
2.02 |
2.19 |
-7.8% |
ADV Intraday
power market (in TWH) |
0.06 |
0.07 |
-10.7% |
Trading revenue on a reported basis (Q3 2020 excludes Borsa
Italiana Group revenue). All trading volumes data on a pro forma
basis to include the Borsa Italiana Group trading activities. 2020
data has been restated accordingly
Cash trading revenue increased by +42.7% to
€75.0 million in Q3 2021 as a result of the consolidation of the
cash trading activities of Borsa Italiana and robust yield in a
higher than usual volatile environment. During the third quarter of
2021, on a pro forma basis, cash market recorded average daily
volumes of €10.9 billion, up +14.6% compared to Q3 2020.
Over the third quarter of 2021, Euronext cash
trading yield averaged 0.52bps and the market share on cash trading
averaged 71.4%.
On a like-for-like basis at constant currencies,
cash trading revenue was up +17.0% in Q3 2021 compared to Q3
2020.
Derivatives trading revenue increased by +25.9%
to €13.5 million in Q3 2021 as a result of the consolidation of
Borsa Italiana derivatives trading activities and of a record third
quarter for commodity derivatives trading. During the third quarter
of 2021, average daily volumes on financial derivatives was 583,691
lots, up +3.4% from Q3 2020 reflecting a low volatility environment
for equity derivatives, while average daily volumes on commodity
derivatives was 82,846 lots, up +34.4% from Q3 2020 reflecting
successful geographical and client expansions.
Euronext revenue capture on derivatives trading
was €0.31 per lot for the third quarter of 2021.
On a like-for-like basis at constant currencies,
derivatives trading revenue was up +2.6% in Q3 2021 compared to Q3
2020.
Fixed income trading reported revenue at €23.8
million in Q3 2021, compared to €0.5 million in Q3 2020,
resulting from the consolidation of MTS. MTS reported a strong
performance reflecting the continued positive momentum in cash
bonds trading supported by steady issuance level in Europe. For the
third quarter of 2021, MTS Cash reported €17.1 million of revenue
and MTS Repo reported €4.8 million of revenue.
On a like-for-like basis at constant currencies,
fixed income trading revenue (solely Euronext perimeter) was down
-18.7% in Q3 2021 compared to Q3 2020.
FX trading reported revenue at €5.6 million in
Q3 2021, down -4.2% from Q3 2020, reflecting lower trading volumes
as FX markets recorded a low volatility quarter. Over the third
quarter of 2021, US$17.5 billion average daily volumes were
recorded, down -9.4% compared to Q3 2020.
On a like-for-like basis at constant currencies,
Spot FX trading revenue was down -3.4% in Q3 2021 compared to Q3
2020.
Power trading reported €6.3 million in revenue
in Q3 2021, stable compared to Q3 2020 as lower trading volumes
were offset by foreign exchange impact. Over the third quarter of
2021, average daily day-ahead power traded was 2.02TWh, down -7.8%
compared to Q3 2020, and average daily intraday power traded was
0.06TWh, down -10.7% compared to Q3 2020.
On a like-for-like basis at constant currencies,
power trading revenue was down -3.3% compared to Q3 2020.
Investor Services
Investor Services reported revenue up +9.3% to
€2.1 million in Q3 2021 reflecting its continued commercial
development.
On a like-for-like basis at constant currencies,
Investor Services revenue was up 24.0% compared to Q3 2020.
Advanced Data
Services
Advanced Data Services revenue was €49.8 million
in Q3 2021, up +44.3% from Q3 2020, driven by a dynamic index
activity, resilient market data business and the consolidation of
the various Borsa Italiana Group data activities.
On a like-for-like basis at constant currencies,
Advanced Data Services revenue was up +4.5% compared to Q3
2020.
Post
Trade
in €m, unless
stated otherwise |
Q3 2021 |
Q3 2020 |
% var |
Post-trade revenue and income |
96.1 |
44.6 |
+115.2% |
Clearing |
27.5 |
14.9 |
+85.3% |
Revenue from LCH SA |
17.1 |
14.9 |
+14.8% |
Revenue from CC&G |
10.5 |
- |
n/a |
Net treasury
income through CCP business |
12.9 |
- |
n/a |
Custody,
Settlement and other Post-trade |
55.6 |
29.8 |
+86.7% |
Clearing revenue was up +85.3% to €27.5 million
in Q3 2021, as a result of higher clearing revenue and treasury
income received from LCH SA and the consolidation of CC&G
activities. In Q3 2021, CC&G revenue included €1.3 million from
derivatives clearing, €4.2 million from equities clearing, €2.1
million from bonds clearing and €2.9 million of other revenue.
On a like-for-like basis at constant currencies,
clearing revenue was up +14.8% compared to Q3 2020.
Net treasury income through the CCP business of
CC&G was €12.9 million in Q3 2021.
- Custody,
Settlement and other Post-trade
Custody, Settlement and other Post-trade
revenue, encompassing the activities of the Euronext CSDs
(Interbolsa, Euronext VPS, VP Securities, Monte Titoli), was €55.6
million in Q3 2021, up +86.7% from Q3 2020, as a result of the
consolidation of the Italian CSD, Monte Titoli (as of 29 April
2021) and of VP Securities (from 4 August 2020). Euronext
Nordic CSDs recorded lower volumes of activity, reflecting a
normalization of retail trading activities.
Over the third quarter of 2021, the four CSDs
operated by Euronext reported 29.9 million of settlement
instructions and the total asset under custody at the end of
September 2021 was €6.3 trillion.
On a like-for-like basis at constant currencies,
Custody, Settlement and other Post-trade revenue was up +8.7%
compared to Q3 2020.
Euronext Technologies and other
revenue
Euronext Technologies and other revenue was
€24.4 million in Q3 2021, up +104.3% from Q3 2020 as a result of
the consolidation of the technology businesses of the Borsa
Italiana Group, including Gatelab and X2M and of an increase in
SFTI / Colocation revenue and fee grid improvement.
On a like-for-like basis at constant currencies,
Euronext Technologies and Other revenue was up +6.8% compared to Q3
2020.
Corporate highlights since 30
September 2021
Euronext acquires remaining interest
in Commcise
On 30 September 2021, Euronext acquired the
remaining 21% interest in Commcise, a Software as a Service
provider of research evaluation and commission management solutions
for financial services firms. Commcise has been part of Euronext’s
Investor Services offering since its acquisition in December
2018.
New CEO for
Borsa Italiana, to
further grow the business in Italy and in Europe
On 28 October 2021, Euronext announced that the
Board of Directors of Borsa Italiana and the Supervisory Board of
Euronext N.V. have respectively nominated Fabrizio Testa, currently
CEO of MTS, as CEO of Borsa Italiana, and as Head of Fixed Income
trading for the Group and member of the Managing Board of Euronext
N.V., subject to regulatory and shareholders approvals. Raffaele
Jerusalmi will step down from his position as CEO of Borsa Italiana
as of 28 November 2021, by mutual consent.
Fabrizio Testa will take up his functions as CEO
of Borsa Italiana and Head of Fixed Income trading for the Group on
28 November 2021. He will step down from his position as CEO of MTS
in the course of Q1 2022. Fabrizio Testa will actively work to
develop the Borsa Italiana business in Italy, implement the
integration of Borsa Italiana within the Euronext European project
and lead the Euronext Fixed Income trading ambition. Fabrizio Testa
will join the Managing Board of Euronext N.V. to be a key
contributor to the Euronext Group strategy. Angelo Proni has been
appointed by the Board of Directors of MTS as new CEO of MTS and
will take office after the approval of the 2021 financial results
by MTS’ Board of Directors in Q1 2022. Angelo Proni will join the
extended Managing Board of Euronext N.V. and continue to be
supported by the MTS Chairwoman Maria Cannata, the General Manager
Ciro Pietroluongo and all other senior executives.
With the appointment of Fabrizio Testa at the
Managing Board of Euronext N.V.1, Italian business leaders
contribute to every single level of the Euronext Group governance:
the CEO of MTS and Giorgio Modica, Group CFO, are members of the
Extended Managing Board; CDP Equity (CDPE) and Intesa Sanpaolo are
members of the Committee of Reference Shareholders; Piero Novelli
is an independent member of Euronext N.V Supervisory Board, which
he chairs since 1 September 2021; Alessandra Ferrone is a member of
the Supervisory Board representing CDPE as one of the two largest
shareholders in Euronext N.V; Andrea Sironi is Chairman of the
Board of Borsa Italiana; and Consob has joined the College of
Regulators of Euronext N.V.
The combination of Borsa Italiana with
Euronext’s European project is a unique opportunity to leverage the
strengths and the high level of expertise of the teams in Italy,
and across the European locations of the combined Group, for the
benefit of our clients and to enhance the financing of the real
economy in Italy and in Europe.
Agenda
A conference call and
a webcast will be held on 5 November 2021, at 09.00am CET (Paris
time) / 08.00am BT (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
83360400 |
BE
Number: |
+32 2 789
8603 |
|
|
Password:
Euronext
Live webcast:
Webcast:
A live audio webcast and replay after the call will be available
via this link and on our Euronext Investor Relations website
CONTACTS INVESTOR RELATIONS: |
|
|
Aurélie Cohen –
Chief Communications and Investor Relations Officer |
+33 1 70 48 24
17 |
ir@euronext.com |
Clément Kubiak –
Investor Relations Manager |
+33 1 70 48 26
33 |
CONTACTS
MEDIA: |
|
|
Aurélie Cohen -
Chief Communications and Investor Relations Officer |
+33 1 70 48 24
45 |
mediateam@euronext.com |
About Euronext Euronext is the
leading pan-European market infrastructure, connecting local
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 1,920 listed issuers and around €6.5 trillion in market
capitalisation as of end September 2021, 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. 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. Euronext provides custody
and settlement services through central securities depositories in
Denmark, Italy, Norway and Portugal.
For the latest news, go to euronext.com or follow us on Twitter
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DisclaimerThis press release is
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Appendix
Non-IFRS financial measures
For comparative purposes, the company provides
unaudited non-IFRS measures including:
- Operational
expenses excluding depreciation and amortisation
- EBITDA, 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
- EBITDA as the
operating profit before exceptional items and depreciation and
amortisation
- EBITDA margin as
the operating profit before exceptional items and depreciation and
amortisation, divided by total revenue and income.
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.
Adjusted EPS definition
In €m unless stated otherwise |
Q3 2021 |
Q3 2020 |
Net income reported |
115.8 |
70.2 |
EPS Reported (€ per share) |
1.08 |
0.92 |
Intangible assets adj. related to acquisitions (PPA) |
(20.1) |
(5.4) |
Exceptional
items |
(2.0) |
(3.5) |
Tax related to those items |
5.5 |
1.4 |
Adj. net income |
132.4 |
77.7 |
Adj. EPS (€ per
share) |
1.21 |
1.02 |
Consolidated income
statement
unaudited, in
€m |
Q3 2021 |
Q3 2020 |
% var |
% var l-f-l |
Total Revenues and income |
350.6 |
204.8 |
+71.2% |
+10.2% |
Listing |
50.8 |
35.8 |
+42.1% |
+11.7% |
Trading
revenue, of which |
124.2 |
75.9 |
+63.6% |
+11.5% |
Cash Trading |
75.0 |
52.5 |
+42.7% |
+17.0% |
Derivatives Trading |
13.5 |
10.8 |
+25.9% |
+2.6% |
Fixed income trading |
23.8 |
0.5 |
n/a |
-18.7% |
FX Trading |
5.6 |
5.8 |
-4.2% |
-3.4% |
Power trading |
6.3 |
6.3 |
-0.0% |
-3.3% |
Investor
Services |
2.1 |
2.0 |
+9.3% |
+24.0% |
Market Data
& indices |
49.8 |
34.5 |
+44.3% |
+4.5% |
Post-trade, of
which |
83.1 |
44.6 |
+86.2% |
+11.4% |
Clearing |
27.5 |
14.9 |
+85.3% |
+14.8% |
Custody and Settlement |
55.6 |
29.8 |
+86.7% |
+8.7% |
Market
Solutions & other revenue |
24.4 |
11.9 |
+104.3% |
+6.8% |
NTI through
CCP business |
12.9 |
- |
n/a |
n/a |
Other
income |
0.8 |
0.0 |
n/a |
n/a |
Transitional
revenues |
2.3 |
- |
n/a |
n/a |
|
|
|
|
|
Operating expenses exc. D&A |
(147.6) |
(87.1) |
+69.5% |
+5.3% |
Salaries and
employee benefits |
(72.9) |
(48.3) |
+51.0% |
+9.6% |
Other
Operational Expenses, of which |
(74.7) |
(38.8) |
+92.6% |
+0.1% |
System &
Communication |
(25.9) |
(10.1) |
+155.8% |
+5.5% |
Professional
Services |
(22.2) |
(12.6) |
+75.7% |
-9.6% |
Clearing
expense |
(8.2) |
(8.1) |
+1.4% |
+1.3% |
Accommodation |
(2.6) |
(2.0) |
+31.8% |
-1.2% |
Other
Operational Expenses |
(15.7) |
(5.9) |
+165.2% |
+9.6% |
|
|
|
|
|
EBITDA |
203.0 |
117.8 |
+72.4% |
+13.7% |
EBITDA
margin |
57.9% |
57.5% |
+0.4pt |
+1.8pt |
Depreciation
& Amortisation |
(37.9) |
(15.4) |
+145.8% |
-2.7% |
Total
Expenses |
(185.5) |
(102.5) |
+81.0% |
+4.1% |
Operating Profit before Exceptional items |
165.1 |
102.3 |
+61.3% |
+16.0% |
|
|
|
|
|
|
|
|
|
|
Exceptional
items |
(2.0) |
(3.5) |
-43.2% |
|
Operating Profit |
163.1 |
98.8 |
+65.1% |
|
Net financing
income / (expense) |
(7.3) |
(3.4) |
+113.8% |
|
Results from
equity investments |
11.8 |
1.8 |
+543.1% |
|
Profit before
income tax |
167.6 |
97.2 |
+72.4% |
|
Income tax
expense |
(48.5) |
(25.6) |
+89.5% |
|
Non-controlling interests |
(3.2) |
(1.4) |
+135.0% |
|
Net income, share of the
parent company shareholders |
115.8 |
70.2 |
+64.9% |
|
|
|
|
|
|
EPS (basic, reported, in
€) |
1.08 |
0.92 |
+17.1% |
|
EPS (diluted,
reported, in €) |
1.08 |
0.92 |
+17.2% |
|
EPS (basic, adjusted, in
€) |
1.21 |
1.02 |
+18.1% |
|
The figures in this document have not been
audited or reviewed by our external auditor
Consolidated comprehensive income
statement
|
|
|
In €m unless
stated otherwise |
Q3 2021 |
Q3 2020 |
Profit for the period |
119.0 |
71.6 |
|
|
|
Other comprehensive
income |
|
|
Items that may be reclassified to profit or loss: |
|
|
– Exchange
differences on translation of foreign operations |
10.2 |
(14.9) |
– Change in
value of debt investments at fair value through other comprehensive
income |
(2.2) |
- |
– Income tax
impact on exchange differences on translation of foreign
operations |
(1.2) |
1.7 |
– Income tax
impact on change in value of debt investments at fair value through
other comprehensive income |
0.6 |
- |
|
|
|
Items that will not be reclassified to profit or loss: |
|
|
– Change in
value of equity investments at fair value through other
comprehensive income |
0.0 |
- |
– Income tax
impact on change in value of equity investments at fair value
through other comprehensive income |
(0.0) |
0.1 |
–
Remeasurements of post-employment benefit obligations |
- |
(1.4) |
– Income tax
impact on remeasurements of post-employment benefit
obligations |
0.0 |
1.5 |
Other
comprehensive income for the period, net of tax |
7.5 |
(12.9) |
Total
comprehensive income for the period |
126.6 |
58.7 |
|
|
|
Comprehensive income attributable to: |
|
|
– Owners of
the parent |
123.2 |
57.4 |
–
Non-controlling interests |
3.4 |
1.3 |
The figures in this document have not been
audited or reviewed by our external auditor.
Consolidated balance sheet
unaudited, in
€m |
As at
30/09/21 |
As at
30/06/21 |
Non-current
assets |
|
|
Property,
plant and equipment |
87.4 |
78.7 |
Right-of-use
assets |
70.2 |
72.5 |
Goodwill and
other intangible assets |
6,117.6 |
6,125.0 |
Deferred
income tax assets |
32.8 |
33.1 |
Investments in
associates and JV |
66.0 |
71.8 |
Financial
assets at fair value through OCI |
228.2 |
258.4 |
Other non
current assets |
3.7 |
3.8 |
Total
non-current assets |
6,606.0 |
6,643.2 |
|
|
|
Current assets |
|
|
Trade and
other receivables |
410.2 |
381.4 |
Income tax
receivable |
9.0 |
11.1 |
Derivative
financial instruments |
18.3 |
18.3 |
CCP clearing
business assets |
145,089.8 |
132,243.9 |
Other
short-term financial assets |
194.0 |
161.4 |
Cash &
cash equivalents |
798.3 |
620.5 |
Total
current assets |
146,519.6 |
133,436.6 |
|
|
|
Assets held
for sale |
6.0 |
- |
|
|
|
Total assets |
153,131.6 |
140,079.7 |
|
|
|
Equity |
|
|
Shareholders'
equity |
3,556.5 |
3,441.8 |
Non-controlling interests |
82.0 |
81.1 |
Total
Equity |
3,638.6 |
3,522.8 |
|
|
|
Non-current
liabilities |
|
|
Borrowings |
3,049.9 |
3,049.2 |
Lease
liabilities |
52.1 |
53.5 |
Deferred
income tax liabilities |
528.5 |
534.1 |
Post
employment benefits |
31.4 |
31.0 |
Contract
liabilities |
67.8 |
64.2 |
Other
provisions |
10.5 |
10.5 |
Total
Non-current
liabilities |
3,740.1 |
3,742.6 |
|
|
|
Current liabilities |
|
|
Borrowings |
90.5 |
83.4 |
Lease
liabilities |
24.3 |
24.2 |
CCP clearing
business liabilities |
145,062.3 |
132,219.1 |
Income tax
payable |
77.6 |
51.3 |
Trade and
other payables |
393.3 |
323.4 |
Contract
liabilities |
99.4 |
108.3 |
Other
provisions |
4.2 |
4.6 |
Total Current
liabilities |
145,751.6 |
132,814.3 |
|
|
|
Liabilities
held for sale |
1.3 |
- |
|
|
|
Total equity and
liabilities |
153,131.6 |
140,079.7 |
The figures in this document have not been
audited or reviewed by our external auditor.
Consolidated statement of cash
flows
unaudited, in
€m |
Q3 2021 |
Q3 2020 |
Profit before
tax |
167.6 |
97.2 |
Adjustments
for: |
|
|
- Depreciation
and amortization |
37.9 |
15.4 |
- Share based
payments |
2.5 |
2.3 |
- Share of profit
from associates and joint ventures |
(2.6) |
(1.8) |
- Changes in
working capital |
35.0 |
(14.1) |
|
|
|
Cash flow from operating activities |
240.4 |
99.0 |
Income tax
paid |
(26.9) |
(27.3) |
Net cash flows from operating activities |
213.5 |
71.7 |
|
|
|
Cash flow from investing activities |
|
|
Acquisition of
subsidiaries, net of cash acquired |
(12.6) |
(134.5) |
Proceeds from
sale of assets held for sale |
- |
8.8 |
Purchase of
current financial assets |
(2.2) |
(1.2) |
Redemption of
current financial assets |
0.1 |
4.0 |
Purchase of
property, plant and equipment |
(13.6) |
(1.2) |
Purchase of
intangible assets |
(8.1) |
(4.0) |
Proceeds from
sale of Property, plant, equipment and intangible assets |
0.0 |
(0.0) |
Dividends
received from equity investments |
9.2 |
- |
Dividends
received from associates |
6.7 |
7.9 |
|
|
|
Net cash flow from investing activities |
(20.7) |
(120.2) |
|
|
|
Cash flow from financing activities |
|
|
Proceeds from
borrowings, net of transaction fees |
(1.1) |
0.2 |
Repayment of
borrowings, net of transaction fees |
- |
- |
Interest
paid |
(0.4) |
(0.1) |
Share capital
repayment |
(0.4) |
- |
Payment of lease
liabilities |
(7.6) |
(3.9) |
Acquisition of
own shares |
(0.1) |
(0.0) |
Employee Share
transactions |
0.0 |
(0.0) |
Dividends paid to
non-controlling interests |
(4.3) |
- |
|
|
|
Net cash flow from financing activities |
(13.8) |
(3.9) |
|
|
|
Total cash flow over the period |
179.0 |
(52.3) |
Cash and cash
equivalents - Beginning of period |
620.5 |
622.3 |
Non Cash exchange
gains/(losses) on cash and cash equivalents |
3.0 |
(2.7) |
Cash and cash equivalents - End of period |
802.5 |
567.3 |
The figures in this document have not been
audited or reviewed by our external auditor.
Volumes for
the third quarter of
2021
|
Q3 2021 |
Q3 2020 |
% var |
Number of trading
days |
66 |
66 |
|
Number of transactions (buy and sells) (inc. reported
trades) |
Total cash market |
210,289,226 |
203,347,068 |
+3.4% |
ADV cash
market |
3,186,200 |
3,081,016 |
+3.4% |
Transaction value (€ million, single counted) |
|
|
|
Total cash market |
716,794 |
625,542 |
+14.6% |
ADV cash
market |
10,861 |
9,478 |
+14.6% |
|
|
|
|
Listings |
|
|
|
Number of issuers on equities |
|
|
|
Euronext |
1,918 |
1,797 |
+6.7% |
o/w SMEs |
1,536 |
1,411 |
+8.9% |
Number of listed
securities |
|
|
|
Bonds |
52,180 |
52,693 |
-1.0% |
ETFs |
3,260 |
2,567 |
+27.0% |
Funds |
3,216 |
4,517 |
-28.8% |
|
|
|
|
Capital raised on primary and secondary
market |
|
|
|
Total Euronext, in €m |
|
|
|
Number of new
equity listings |
51 |
26 |
|
Money Raised -
New equity listings (incl over allotment) |
4,871 |
926 |
x5.2 |
Money Raised -
Follow-ons on equities |
39,696 |
9,429 |
x4.2 |
Money Raised -
Bonds |
336,154 |
212,928 |
+57.9% |
Total Money
Raised |
380,720 |
223,284 |
+70.5% |
|
|
|
|
of which
SMEs, in €m |
|
|
|
Number of new
equity listings |
46 |
26 |
|
Money Raised -
New equity listings (incl over allotment) |
1,754 |
926 |
+89.3% |
Money Raised -
Follow-ons on equities |
2,351 |
2,077 |
+13.2% |
Money Raised -
Bonds |
691 |
121 |
x5.8 |
Total Money
Raised |
4,796 |
3,124 |
+53.5% |
|
Q3 2021 |
Q3 2020 |
% var |
Transaction value (€ million, single counted) |
|
|
|
MTS |
|
|
|
ADV MTS
Cash |
23,388 |
14,049 |
+66.5% |
TAADV MTS
Repo |
281,898 |
288,618 |
-2.3% |
OTHER
FIXED INCOME |
|
|
|
ADV Fixed
income |
673 |
949 |
-29.0% |
|
Q3 2021 |
Q3 2020 |
% var |
Number of
trading days |
66 |
66 |
|
FX volume ($m, single counted) |
|
|
|
Total Euronext
FX |
1,155,586 |
1,275,229 |
-9.4% |
ADV Euronext
FX |
17,509 |
19,322 |
-9.4% |
|
Q3 2021 |
Q3 2020 |
% var |
Number of
trading days |
92 |
92 |
|
Power volume (in TWh) |
|
|
|
ADV Day-ahead
Power Market |
2.02 |
2.19 |
-7.8% |
ADV Intraday
Power Market |
0.06 |
0.07 |
-10.7% |
|
Q3 2021 |
Q3 2020 |
%
var |
Number of
trading days |
66 |
66 |
|
Derivatives Volume (in lots) |
|
|
|
|
|
|
|
Equity |
38,523,610 |
37,011,956 |
+4.1% |
Index |
14,597,938 |
15,317,663 |
-4.7% |
Futures |
9,865,105 |
10,509,217 |
-6.1% |
Options |
4,732,833 |
4,808,446 |
-1.6% |
Individual Equity |
23,925,672 |
21,694,293 |
10.3% |
Futures |
4,344,430 |
5,827,413 |
-25.4% |
Options |
19,581,242 |
15,866,880 |
+23.4% |
|
|
|
|
TM Derivatives |
0 |
257,347 |
|
Futures |
0 |
257,347 |
|
Options |
0 |
0 |
|
|
|
|
|
Commodity |
5,467,861 |
4,068,894 |
+34.4% |
Futures |
4,848,475 |
3,775,926 |
+28.4% |
Options |
619,386 |
292,968 |
+111.4% |
|
|
|
|
Total Euronext |
43,991,471 |
41,338,197 |
+6.4% |
Total Futures |
19,058,010 |
20,369,903 |
-6.4% |
Total Options |
24,933,461 |
20,968,294 |
+18.9% |
|
|
|
|
Derivatives ADV (in lots) |
|
|
|
|
|
|
|
Equity |
583,691 |
560,787 |
+4.1% |
Index |
221,181 |
232,086 |
-4.7% |
Futures |
149,471 |
159,231 |
-6.1% |
Options |
71,710 |
72,855 |
-1.6% |
Individual Equity |
362,510 |
328,701 |
10.3% |
Futures |
65,825 |
88,294 |
-25.4% |
Options |
296,685 |
240,407 |
+23.4% |
|
|
|
|
TM Derivatives |
0 |
3,899 |
|
Futures |
0 |
3,899 |
|
Options |
0 |
0 |
|
|
|
|
|
Commodity |
82,846 |
61,650 |
+34.4% |
Futures |
73,462 |
57,211 |
+28.4% |
Options |
9,385 |
4,439 |
+111.4% |
|
|
|
|
Total Euronext |
666,537 |
626,336 |
+6.4% |
Total Futures |
288,758 |
308,635 |
-6.4% |
Total Options |
377,780 |
317,701 |
+18.9% |
|
|
|
|
-
Derivatives open interest11
|
Q3 2021 |
Q3 2020 |
% var |
Open interest (in
lots) |
|
|
|
|
|
|
|
Equity |
23,391,581 |
23,176,244 |
+0.9% |
Index |
1,692,347 |
1,985,839 |
-14.8% |
Futures |
785,129 |
855,264 |
-8.2% |
Options |
907,218 |
1,130,575 |
-19.8% |
Individual Equity |
21,699,234 |
21,190,405 |
+2.4% |
Futures |
1,915,961 |
932,030 |
+105.6% |
Options |
19,783,273 |
20,258,375 |
-2.3% |
|
|
|
|
TM Derivatives |
0 |
0 |
|
Futures |
0 |
0 |
|
Options |
0 |
0 |
|
|
|
|
|
Commodity |
1,111,285 |
832,211 |
+33.5% |
Futures |
716,094 |
581,940 |
+23.1% |
Options |
395,191 |
250,271 |
+57.9% |
|
|
|
|
Total Euronext |
24,502,866 |
24,008,455 |
+2.1% |
Total Futures |
3,417,184 |
2,369,234 |
+44.2% |
Total Options |
21,085,682 |
21,639,221 |
-2.6% |
1 Like for like revenue at constant currencies
exclude in Q3 2020 and Q3 2021 VP Securities (until 4 August), the
Borsa Italiana Group, 3Sens, Ticker, OMS and Centevo as well as
related integration costs2 Definition in
appendix3 Weighted average number of shares at
92,447,841for 9M 2021, 9M 2020 outstanding shares adjusted for the
rights issue to 76,120,331 sharesUnless specified otherwise,
percentages refer to Q3 2021 data compared to Q3 2020
data4 Number of outstanding shares used in 2020
adjusted for the rights issue to factor in the bonus element at
76,120,331 shares5 Number of outstanding shares
used to compute 9M 2021 EPS6 Prior to the
acquisition of the Borsa Italiana Group, Euronext fixed income
trading revenue was included in cash trading revenue. Data for Q3
2020 has been restated accordingly.
8 Q3 2021 data is published on a pro forma
basis to include the trading activities of the Borsa Italiana
Group. Q3 2020 data has been restated
accordingly.9 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. 2020 data has been restated
accordingly10Q3 2021 data is published on a pro
forma basis to include the trading activities of the Borsa Italiana
Group. Q3 2020 data has been restated
accordingly.11 Q3 2021 data is published on a pro
forma basis to include the trading activities of the Borsa Italiana
Group. Q3 2020 data has been restated accordingly.
- 20211104_ENX_Q32021_PR vf
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