Euronext reports bumper results thanks to Borsa Italiana

Euronext has reaped the benefits of the integration of Borsa Italiana with a 59.5% jump in revenue and income to €370 million in the fourth quarter.

Operating profit rose to €150.6 million compared with €98.6 million in the same quarter of 2020.

Underlying operating costs for 2022 are expected to total around €622 million versus an annualised fourth quarter of 2021 of €627 million euros, Euronext said.

Fixed income trading revenue also increased to €65.8 million driven by a 45% growth year-on-year in its MTS cash trading activities.

For the full year revenue surged by 47% to €1,298.7 million, with Borsa Italiana contributing €337.7 million while data services revenue climbed 32% to €183.6 million thanks to the Italian exchange.

The exchange said there were already €10 million in annualised savings related to Borsa Italiana and other factors last year, out of a target of €100 million by end 2024, helping to cut Euronext group’s overall net debt.

Euronext acquired Borsa Italiana from the London Stock Exchange in October 2020 for €4.4 billion. The exchange was for sale after the European Commission ordered LSEG to hive off some of its businesses due to competition concerns relating to its $27 billion mega Refinitiv deal.

“In 2021, Euronext achieved more than 40% of growth in revenue and EBITDA and a high double-digit increase in adjusted EPS,” said Stéphane Boujnah, chief executive officer and chairman of the managing board at Euronext.

He added, “These results from the successful integration of Euronext Securities Copenhagen and the contribution of the Borsa Italiana Group, especially in fixed income, custody and settlement and clearing,”

Boujinah also noted, “These achieved synergies do not encompass yet the business development opportunities arising from the integration of the Borsa Italiana Group.”

Boujnah reiterated there would be no mandatory layoffs in Milan, with any cuts in staff made on a voluntary basis, and that over time, more resources will end up in Italy.

Euronext said the relocation of its main server from Basildon, England to Bergamo in Italy by the start of June was on track.

©Markets Media Europe 2022

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