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Euronext posts about 2 percent rise in second-quarter core earnings

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Euronext posts about 2 percent rise in second-quarter core earnings

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(Reuters) – Pan-European exchange Euronext <ENX.PA> said its second-quarter core earnings rose about 2 percent as higher investor appetite and a better financial and political outlook for the European Union boosted trading volumes. Volumes returned to 2015 levels and were the strongest since the company’s IPO, Chairman and CEO Stéphane Boujnah said in a statement. Euronext, which operates bourses in Paris, Amsterdam, Brussels, London and Lisbon, said core earnings before interest, tax, depreciation and amortisation (EBITDA) rose to 79.2 million euros ($92.62 million) in the quarter ended June 30 from 77.7 million a year earlier. Revenue rose 3.8 percent to 137.3 million euros. Cash average daily volumes rose 18.5 percent and equity derivatives average daily volumes rose by 27.3 percent Its listing business saw 106 billion euros in equity and debt raised, up about 19 percent, and revenue up 1.1 percent to 23.6 million euros. Boujnah sees growing momentum for new stock listings in the second half of the year, following the French and Dutch elections, he told Reuters this month. The company’s clearing business reported an 8 percent rise in revenue to 13.3 million euros reflecting stronger derivatives trading activity as well as higher treasury and other clearing income. The cost of using financial derivatives is likely to increase if euro-denominated clearing is relocated from London to the European Union after Brexit according to trade body ICMA. The EU plans to give itself powers to move the multi-trillion euro clearing business away from Europe’s biggest financial centre, where the bulk of euro clearing is currently carried out.

(Reporting by Sanjeeban Sarkar and Noor Zainab Hussain in Bengaluru; editing by Subhranshu Sahu and Jason Neely)
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