Euronext (ENX) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached a record €412.9 million, up 12.2% year-over-year, driven by strong trading, post-trade, and non-volume-related growth from a diversified business model.

• Adjusted EBITDA rose 18.8% to €256.8 million, with margin up 3.5 points to 62.2%, reflecting cost control and business diversification.

• Adjusted net income increased 15.6% to €165.2 million; adjusted EPS up 19% to €1.59; reported net income up 18.2% to €141.7 million.

• 58% of revenue was non-volume related, highlighting resilience in recurring business lines.

• Integration of Borsa Italiana Group is nearly complete, with the final clearing migration set for September 2024.

Financial highlights

• Trading revenue surged 20.7% to €142.7 million, with fixed income trading up 40.7% to €35.6 million.

• Clearing revenue increased 33.2% to €39.2 million; custody and settlement revenue up 9.4% to €69.7 million.

• Advanced Data Services revenue up 5.4% to €60.0 million; Investor Services up 17.7%.

• Technology Solutions revenue declined 7.0% to €25.4 million due to migration synergies passed to clients.

• Net debt to adjusted EBITDA at 1.8x, impacted by dividend payment and GRSS acquisition.

Outlook and guidance

• 2024 underlying cost guidance confirmed at €625 million, with €10 million earmarked for growth projects in H2.

• Cumulative run rate EBITDA synergies from Borsa Italiana integration targeted at €115 million by end-2024.

• Implementation cost for Borsa Italiana integration expected to be €130 million by end-2024, down from previous guidance.

• Second and final phase of derivatives clearing migration scheduled for September 2024.