The pan-European stock market operator Euronext announced Thursday record turnover and net profit for the year 2022, driven by the integration of the Italian Stock Exchange and the high volatility of the markets at the start of the year.
Net profit increased by 5.9% over one year to reach 437.8 million euros last year, thanks to "
the strong performance of activities not linked to volumes (traded on the markets, editor's note)
" and to “
cost discipline,
” according to Euronext CEO Stéphane Boujnah.
The revenues of the company which manages the Paris, Amsterdam, Brussels, Lisbon, Dublin, Oslo and Milan stock exchanges rose by 9.3%, to 1.4 billion euros, compared to the year 2021 which had already been a record thanks to the acquisition of the operator of the Milan Stock Exchange, Borsa Italiana.
“Adjusted” net profit
These figures are just in line with the expectations of analysts polled by Factset.
The “ adjusted
” net profit
, which notably excludes a “one-
time loss
” linked to the partial sale of the portfolio of a subsidiary and the costs of implementing a multi-year strategic plan, amounts to 555 million euros.
The fourth quarter, however, came out slightly below analysts' expectations, with net profit down 11.9% year on year to 99.3 million euros and sales down 6.2%, due to a strong decline of 12% in revenues linked to market variations.
The end of 2021 had been much more volatile, and therefore with more securities trading, than last year.
In detail, income from IPOs increased by 15% in 2022, those from listings by 10.5%, those from post-transaction activities by 13.7%, compared to 2021. This last component, which includes clearing activities, which ensure the security and execution of transactions, and those relating to the custody and delivery of exchanged securities has been strengthened by the arrival in the bosom of the group of Borsa Italiana.
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The integration of the Italian company into the French group continued throughout 2022 and generated 34.1 million euros in synergies, made possible by internal reorganizations and the renegotiation of contracts.
Euronext now hopes to realize a total of 115 million euros in synergies by 2024, against 100 million previously forecast, thanks to the internalization of clearing activities and the migration of a data center.
