November 8, 2017 / 7:24 AM / a year ago

UPDATE 1-Euronext's Q3 core profit rises on stable European macro environment

(Adds details on segments, quote from statement)

Nov 8 (Reuters) - Pan-European exchange Euronext said its third-quarter core earnings rose 13.3 percent, driven by improved trading volumes in a stabilised macro environment and gains from recent acquisitions.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose to 69.5 million euros ($80.52 million) in the third quarter, from 61.3 million euros a year earlier, said Euronext, which operates bourses in Paris, Amsterdam, Brussels, London and Lisbon.

“The third quarter of 2017 saw an improved trading environment, despite very low volatility, with a stabilised macro environment in Europe. This translated into improved trading volumes on both cash and derivatives markets,” Euronext said in a statement.

Revenue rose 14.1 percent to 128.7 million euros in the period. Revenue from listings jumped 46.6 percent in the quarter from a year earlier, but equity and debt raised fell 3.6 percent to 68.2 billion euros, the company said.

Euronext said the trend of large capitalisations were returning to the company, first seen at the beginning of the year and continued with listings such as Nepi Rockcastle in Amsterdam.

Euronext also pointed to an increasingly active European M&A environment.

Revenue from cash trading rose 11 percent to 44.4 million euros in the quarter, with a more stable political outlook in France, favourable economic conditions and improved corporate earnings across the Eurozone helping volumes.

Euronext’s derivatives business was helped by its rival on the Dutch market, TOM, ceasing activities, with the company’s trading revenue rising 8.7 percent in the quarter to 9.9 million euros.

The company said clearing revenue rose 14.9 percent to 12.8 million euros in the quarter. Euronext recently extended its contract with London Stock Exchange Group’s LCH in a surprise move that could help defuse tension over where euro-denominated trades are cleared after Brexit. ($1 = 0.8632 euros)

Reporting by Noor Zainab Hussain in Bengaluru; Editing by Amrutha Gayathri and Gopakumar Warrier

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