Euronext Posts Strong Revenues for the Second Quarter

Euronext, which runs exchanges in Paris, Brussels, Amsterdam, Lisbon, and Dublin today, said its second-quarter revenues improved 33 percent to €210.7 million, attributing the rise to a 34 percent advance in trading revenues to €89.4 million.

Listing revenue was also on the uptick, having increased to €36.1 million thanks to the consolidation of Oslo Børs VPS and the solid performance of Corporate Services, the company said.

The pan-European exchange posted €125.4 million in second-quarter EBITDA, helping it earn a better-than-expected €82.1 million in profit for the period, which was up 28 and 58 percent, respectively.

On the FX business front, Euronext FX has reported an average daily volume on its spot foreign exchange market at $20.6 billion for the Q2 2020, up 18 percent compared to a year ago. The spot foreign exchange division yielded €6.6 million in revenues, up 21 percent from €5.4 million in Q2 2019. Spot FX trading generated €8 million of revenue in the first quarter of 2020.

The foreign exchange business exceeded expectations that were already heightened for 2020 after the exchange posted record trading volumes that were more than double the figure it typically generated before the coronavirus pandemic.

Euronext also confirmed that it had secured Danish Financial Supervisory Authority clearance to buy a controlling stake in Nordic-focused central securities depository (CSD) VP Securities, boosting the European stock market operator’s presence in the region after its acquisition of the Oslo stock exchange in 2019.

Euronext initially planned to buy 70 percent of the Danish firm’s share capital and voting rights, but over 90 percent of total shares were tendered to the exchange’s offer as of July 15. The deal gives the whole of VP Securities an enterprise value of 1.2 billion Norwegian crowns (€150 million).

VP Securities was created in 1980 in Copenhagen and offers national issuers with core CSD services as well as investor relations tools and sub-custody services. The company was the first Nordic CSD to be granted a CSDR license and to join the European Central Bank’s Target 2 Securities (T2S) settlement system.

Setting on €2.2 trillion of assets under custody, the acquisition strengthens Euronext’s post-trade activities and expands its presence in the Nordic region.

(Photo: flickr)

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