Euronext (ENX) Q4 2024 earnings summary

Executive summary

• Achieved double-digit revenue growth in 2024, with revenue up 10.3% year-over-year to €1,626.9 million, driven by business diversification, strong trading, and post-trade performance.

• Adjusted EBITDA surpassed €1 billion for the first time, up 16.4% to €1,006.4 million, with a margin of 61.9%.

• Adjusted EPS increased 19.6% to €6.59, and adjusted net income grew 16.7% to €682.5 million.

• 58% of revenue was non-volume related, highlighting resilience and diversification.

• Strategic investments and acquisitions, including Nasdaq's Nordic power futures business, Acupay, and Substantive Research, position the group for accelerated growth and innovation in 2025.

Financial highlights

• Q4 2024 revenue reached €415.8 million, up 11.1% year-on-year; adjusted EBITDA was €252.6 million (+16.7%), with a margin of 60.7%.

• Trading revenue grew 14.2% to €559.4 million, with record results in fixed income, FX, and power trading.

• Post-trade revenue rose 12.0% to €414.7 million, with clearing up 19.0% and custody/settlement up 8.7%.

• Underlying operating expenses (excl. D&A) were €620.5 million, in line with revised guidance.

• Proposed dividend of €292.8 million (+14% year-on-year), representing 50% of reported net income.

Outlook and guidance

• 2025 will be an investment year, with around 5% of normalized underlying expenses allocated to strategic growth projects.

• Underlying expenses (excl. D&A) expected to be stable at €640 million in 2025, with total underlying expenses around €670 million including investments.

• Cost increases in 2025 are front-loaded to support 2027 EBITDA maximization; cost growth expected to normalize after 2025.

• No material P&L impact expected from T+1 settlement migration in Europe by 2027.

• Revenue CAGR 2020PF-2024 was 4.7%, exceeding the 3-4% target; adjusted EBITDA CAGR was 6.4%, above the 5-6% target.