Borsa Italiana addition grows Euronext 2021 trading revenue by a third

The Italian deal drove a 27% growth of trading revenue and contributed €337.7 million to the exchange operator’s full year income.

Euronext saw its trading revenue swell to €465.3 million in 2021, driven by its completed acquisition of Borsa Italiana from the London Stock Exchange Group (LSEG) in April.

In its fourth quarter and full year results, the exchange operator confirmed a 27% growth of trading revenues, driven “primarily by the consolidation of the Borsa Italiana Group capital markets” alongside yield management in cash trading offsetting lower volumes compared with 2020.

Fixed income trading revenue had also increased to €65.8 million driven by a 45% growth year-on-year in its MTS cash trading activities.

The exchange operator saw its full year revenue swell to €1,298.7 million, a 47% increase on the year prior, with Borsa Italiana contributing €337.7 million to that figure, while the addition of the Italian bourse also saw the exchange operator’s data services revenue climb 32% to €183.6 million.

Euronext agreed to acquire Borsa Italiana from LSEG in October 2020 for €4.4 billion, after the European Commission ordered the exchange to sell off some of its businesses to alleviate competition concerns around its intended Refinitiv $27 billion mega-deal.

“In 2021, Euronext achieved more than 40% of growth in revenue and EBITDA and a high double-digit increase in adjusted EPS. This results from the successful integration of Euronext Securities Copenhagen and the contribution of the Borsa Italiana Group, especially in fixed income, custody and settlement and clearing,” said Stéphane Boujnah, chief executive officer and chairman of the managing board at Euronext.

“In addition, just eight months after the completion of the acquisition of the Borsa Italiana Group, we have already achieved €10.1 million of run-rate annual synergies out of the 2024 target. Further, these achieved synergies do not encompass yet the business development opportunities arising from the integration of the Borsa Italiana Group.”