Euronext Posts Drop in Q2 FX Trading, Overall Revenue Skyrockets

Euronext (EPA: ENX) has published its financial results for the second quarter of 2021, ending on June 30, reporting a solid jump in overall revenue and income, but a yearly dip in forex trading demand.

According to the official figures, revenue coming from spot forex trading went down to €5.7 million, a decline of 13.5 percent from the previous year’s €6.6 million. On an adjusted basis, this figure was down by 5.3 percent year-over-year.

The revenue was pushed down by the sluggish demand for forex trading, as the average trading volume for the period went down to $18.6 billion from Q2 2020’s $20.6 billion.

Impressive Overall Figures

Coming to the overall figures of the Group, the revenue for the quarter gained by 56 percent to touch €328.8 million. Revenue from trading activities on various group exchanges contributed €112.8 million to the overall figures, which is a jump of 26.1 percent.

The jump in trading revenue was boosted by the consolidation of Borsa Italiana capital markets and robust yield after its incorporation into the group. In the two months, the Italian exchange contributed €89.6 million to revenue.

Revenue from post-trade services came in at €83.4 million, gaining 130.9 percent, while listing and data services brought in €48.2 million and €46.5 million, respectively. Additionally, non-volume-related revenue accounted for 56 percent of the quarter’s total business.

With the spike in overall business, Euronext generated a net income of €86.6 million, 5.6 percent higher on a year-over-year basis. EBITDA came in at €192.9 million with a 58.7 percent margin, adjusted at 59.2 percent.

“This growth results from robust organic performance with record listing activity in equities and ETFs, our fast-growing post-trade business in the Nordics and from the consolidation of the Borsa Italiana Group since 29 April 2021,” said Stéphane Boujnah, Chairman and CEO at Euronext. “We are actively preparing the announcement of the new Euronext strategic plan, including 2024 Group guidances, which we will release in November 2021.”

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