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Euronext reports strong performance in 2017

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Euronext has reported strong operating performance for the full year 2017 with revenue up by 7.2 per cent to EUR532.3 million.

Despite low volatility, cash trading revenues totalled EUR190.3 million up 5.3 per cent, thanks to strong market share at 64.4 per cent (67.1 per cent in Q4) and improving volumes (ADV at EUR7.5 billion up 6.7 per cent).
 
Revenue diversification initiatives also made a solid contribution to performance with FastMatch and Agility for Growth contributing EUR7.2 million and EUR9.8 million to the group revenue, respectively.
 
EBITDA is robust at EUR297.8 million (+4.9 per cent), with margin at 55.9 per cent (-1.2pt), despite the costs of ramp-up of projects, while continued core business cost discipline partially offset the impact of the change of perimeter, MIFID II compliance and Optiq projects, and slowing the growth of operational expenses (EUR234.5 million, up 10.3 per cent).
 
The group has achieved EUR10.9 million of cumulated gross efficiencies since Q2 2016, as part of the cost reduction programme announced in the Agility for Growth plan, and has also seen a significant increase in EPS (basic): EUR3.47 (+22.4 per cent), and Adjusted EPS at EUR3.09[2] (+4.8 per cent).
 
Net income, share of the Group, totalled EUR241.3 million up 22.5 per cent, through a combination of good operating performance, capital gain from LCH SA share swap (EUR40.6 million) and non-recurring tax release in Q4 (EUR20.4 million)
 
Stéphane Boujnah (pictured), Chief Executive Officer and Chairman of the Managing Board of Euronext, says: “2017 was a strong year with key milestones reached for Euronext. We launched growth initiatives, resolved the uncertainties related to clearing, secured the first significant acquisitions since our IPO, delivered the first components of Optiq® and became MIFID II compliant. As a consequence, we are publishing today a strong set of results, showing the strength and growth profile of a profoundly transformed Euronext.
 
“Our confidence is strong for the next two years. Core business revenue should grow in line with forecasts, and we will continue our cost control discipline to ensure the 61 per cent to 63 per cent EBITDA margin target is reached in 2019, excluding clearing activities. FastMatch and the Irish Stock Exchange at closing will further contribute to our 2019 performance. To reflect our active management of priorities, we now forecast EUR55m revenue at a 50 per cent EBITDA margin for Agility for Growth initiatives in 2019. We will continue to deploy our capital through pertinent acquisitions and keep a 50 per cent dividend pay-out ratio, showing our continued commitment to provide value creation to our shareholders.”
 
 

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