Increased trading activity sees Euronext revenue grow

Improving political and economic situation in European Union drives trading activity on Euronext’s markets.

Pan-European trading venue operator Euronext has reported increased revenue in Q2, saying it was its strongest quarter since its June 2014 IPO.

Total revenues for the group increased 3.8% to €137.2 million, up from €132.3 million in the same quarter of 2016. Net profit increased 9.3% to €53.9 million, with earnings per share of €0.78. Euronext revealed it has cash and cash equivalents of €81.2 million and no debt.

The results were partly driven by increased activity on its markets, with cash average daily volume up 18.5% year-on-year, while equity derivatives volume grew 27.3% in the same period. Derivatives trading was particularly boosted due to the closure of the TOM derivatives venue in the Netherlands. Euronext added that a strong quarter for listings also helped increase trading activity.

Market data revenue slipped back a little, down 4.6% to €26 million due to higher than usual contractual audit findings seen in the same quarter last year.

Clearing revenue was up 8% to 13.3 million while settlement and custody revenue at Interbolsa Portugal grew 5.4% to €5.2 million.

Stéphane Boujnah, chairman and CEO of Euronext, said: “The second quarter of 2017 saw volumes return to 2015 levels, driven by increased investor appetite and an improved financial and political outlook for the European Union. Euronext capitalised on this favourable environment and continued to deploy strong cost discipline. We strengthened our core business and delivered significant milestones in our Agility for Growth strategy, shaping the Euronext of tomorrow.”