The pan-European stock market operator Euronext on Tuesday presented quarterly results up sharply and above analysts' forecasts, thanks to the acquisition of the Italian Stock Exchange, the integration of which is going as planned by the group.
Between January and last March, turnover soared by 58.8% compared to the first quarter of 2021, to 395.7 million euros, record quarterly revenues.
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Pro forma, i.e. if the Milan Stock Exchange had become part of the Euronext group in the first quarter of 2021, revenue growth would have been 6%.
This increase in income and a
"continuous discipline in terms of costs"
allow Euronext to generate a net profit up 46.5% to 143.8 million euros.
Pro forma, the change would have been +10.9%.
The consensus of analysts polled by Factset for its part expected a turnover of 390 million euros and a profit of 129 million euros.
Contained costs
The "volatile environment at the end of the first quarter of this year"
contributed to inflating the group's revenues, as did
"non-volume and trading activity" activities
, such as market data, activities post-trade, issuer and investor services, according to the company's statement.
Recurring costs, which exclude costs related to the integration of Borsa italiana, fell by 2.2% year-on-year, prompting Euronext to improve its annual forecast: expected recurring costs drop from 622 to 612 million euros.
And the cost of integrating the Milan Stock Exchange has also been reduced by 10 million euros.
Likewise, the merger with Borsa italiana seems to be proceeding according to plan: 15.2 million annual synergies have been achieved at a cost of 31.4 million euros.
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Regarding ESG practices (environment, social, governance), Euronext should present in June the objectives submitted to the "Science based target initiative", a committee founded by the United Nations Global Compact, WWF, the World Resources Institute and the CDP. , responsible for certifying the consistency of companies' environmental objectives.
The rating agency S&P raised Euronext's credit outlook from
"stable"
to
"positive"
and confirmed the rating of
"BBB/A-"
which had been lowered after the takeover of Borsa Italiana.
