Posted 10 Feb. 2022 at 06:44 PMUpdated Feb 10. 2022 at 19:09
Euronext has never done so well. The pan-European stock exchange operator published record annual results on Thursday, driven by the integration of Borsa Italiana. The high volatility of the equity markets in the fourth quarter, marked by the emergence of the Omicron variant, enabled it to end the year in style.
“A record fourth quarter in the history of Euronext and an exceptional year during which the group has transformed and taken on a new dimension”, welcomed the boss of Euronext, Stéphane Boujnah.
Cost containment
With the Milan Stock Exchange, which joined the operator last April, Euronext now includes 7 markets of the Old Continent: Paris, Amsterdam, Brussels, Lisbon, Dublin and Oslo. Its overall turnover stood at 1.298 billion euros, and its earnings per share at 5.35 euros, in both cases above analysts’ expectations.
With inflation worrying many investors, Euronext reported lower-than-expected cost increases in 2021, and said it expects underlying operating costs to decline slightly this year. “We have once again shown our ability to maintain cost discipline,” said Stéphane Boujnah.
Record vintage for IPOs
The integration of Borsa Italiana continues apace, as does the migration to the group’s new data center in Bergamo in northern Italy scheduled for next June. With the contribution of the clearing house CC & G, renamed “Euronext Clearing”, the group sees the share of post-trading gain in importance. It now accounts for 75% of trading revenue, compared to less than 50% in 2020.
The stock market operator benefited last year from the good performance of world stock markets, which prompted many companies to list. 212 companies listed on one of the group’s markets in 2021, a record year. And more than twenty SPACs have done the same, making Euronext the European leader for these listed empty shells. It remains to be seen whether this dynamic will continue in 2022, when volatility has made a comeback on the stock market.
