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, with 58% of revenue from non-volume sources.

• Adjusted EBITDA rose 18.8% to €256.8 million, with a margin of 62.2%, up 3.5 points year-over-year, 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.

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

• Acquisition of Global Rate Set Systems (GRSS) closed, enhancing index and benchmark administration capabilities.

Financial highlights

• Trading revenue up 20.7% to €142.7 million, led by fixed income (+40.7%), cash trading (+13.8%), derivatives (+6.6%), FX (+28.7%), and power trading (+30.1%).

• Post-trade revenue up 16.9% to €108.9 million, with clearing revenue up 33.2% to €39.2 million and custody & settlement up 9.4% to €69.7 million.

• Advanced Data Services revenue up 5.4% to €60 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 expected at €130 million, down from initial guidance.

• September 2024 will see Euronext Clearing expand to listed financial derivatives markets.