Posted on Feb 10, 2019 2021 at 19:29
Euronext has experienced an exceptional year in more than one way, between very strong activity in the equity markets and the acquisition of Borsa Italiana, which will significantly transform the group. The operator of the Paris, Amsterdam, Brussels, Lisbon, Dublin and Oslo stock exchanges achieved a turnover of 884 million euros, up 30% compared to 2019. Profit net, for its part, came to 315 million euros, an increase of 42%.
These results owe a lot to the volatility of the equity markets in the context of the Covid crisis. Average daily trading volumes jumped 20% last year. Revenue from trading activities grew by almost 34% over the year as a whole. “We were not content to passively benefit from the increase in volumes, we also increased our market share to 70%”, welcomes the head of Euronext, Stéphane Boujnah.
Euronext also benefited from the renewed interest of retail investors in equities. If we are far from the frenzy of the American stock marketers, the volumes linked to small carriers have nevertheless increased by 89% over the year. The deployment of Euronext’s trading platform, Optiq, on the Oslo Stock Exchange also helped boost volumes to and from Norway.
The pan-European operator has started to see the fruits of its diversification strategy. Revenues from post-market activities (clearing, settlement delivery, custody, etc.) jumped by nearly 70% with the integration of the Nordic players VPS and VP Securities. They represented 20% of the group’s turnover. The integration of Borsa Italiana, should considerably strengthen this sector, with the addition of the central depository Monte Titoli and the CC&G clearing house.
Listing activity grew by nearly 13%, mainly thanks to the integration of Oslo Bourse and the dynamism of business services, another consequence of the Covid crisis. “Even before the health crisis, we were already offering our solutions for online general meetings, digital governance, and insider list management,” underlines Stéphane Boujnah. On the other hand, fundraising, in debt or in capital, fell slightly, from 1.268 billion euros to 1.216 billion.
Euronext has confirmed that it wants to complete the acquisition of Borsa Italiana by June. The group, which has already achieved the objectives it had set for 2022, should present, in the fall, a new strategic plan that will take into account its new dimension. It is expected to total 25% of trading volumes on European equities. It also intends, despite an increase in its debt to finance the operation, to continue its distribution policy. It will raise its dividend to 2.25 euros per share.