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Euronext N.V.

Earnings Release Nov 6, 2014

3839_iss_2014-11-06_0c539ee9-cd94-44c3-b459-e7235331b292.pdf

Earnings Release

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Amsterdam +31.20.550.4488 Brussels +32.2.509.1392 +33.1.49.27.12.68 Lisbon +351.217.900.029 Paris +33.1.49.27.11.33

CONTACT - Media: CONTACT - Investor Relations:

Euronext publishes Third Quarter 2014 results

Amsterdam, Brussels, Lisbon, London and Paris – 6 November 2014 – Euronext today announced its results for the third quarter of 2014.

  • Third party quarterly revenue increased by +10.3% on an adjusted basis1 to €112.3 million (Q3 2013 adjusted: €101.9 million), or +24% on a reported basis (Q3 2013 reported: €90.6 million)
  • Robust cost discipline continues with quarterly operational expenses excluding depreciation and amortization decreasing by -8.2% compared to Q3 2013 adjusted1 (increase by +0.6% compared to Q3 2013 reported)
  • EBITDA margin of 44.1% in Q3 2014; EBITDA margin year-to-date of 45.4%
  • Growth driven by ongoing strong cash trading, market data businesses, sustained listing activity and first benefits of initiatives
  • Execution of strategic roadmap on track
  • €30 million of efficiencies already achieved on an adjusted basis commitment to deliver €60 million efficiencies2 by end of H1 2015 on a run-rate basis, 18 months ahead of schedule

"Euronext continues to execute on its ambitious development strategy. Our revenue shows solid growth, the €60 million of efficiencies previously committed will be delivered 18 months ahead of schedule and our EBITDA target of 45% has therefore been met earlier than previously announced. This solid set of results demonstrates our capacity to deliver on our medium term objectives. We remain confident that the long term economic and regulatory cycle favourable for Euronext's growth continues, despite some recent short term market turbulence. I am also delighted to have been joined by an extremely high calibre team who will reinforce our focus on innovation and execution in order to position Euronext as a leading pan-European capital raising centre," said Dominique Cerutti, CEO and Chairman of the Managing Board of Euronext NV.

Financial performance

Third party quarterly revenue increased by +10.3% on an adjusted1 basis to €112.3 million (Q3 2013 adjusted: €101.9m) or +24% on a reported basis (Q3 2013 reported: €90.6m), driven by sustained listing activity and strong revenues from cash trading and from market data businesses. This quarterly revenue

1 for the three month period ending 30 September 2013 the changes in third party revenue and operational expenses have also been included when adjusted for the new derivative clearing agreement with LCH.Clearnet. This was included based on our estimate of the amount of revenue we would have received and the amount of associated expenses we would have paid under the Derivatives Clearing Agreement, based on our actual trading volume for the periods presented and assuming the Derivatives Clearing Agreement had been in effect from 1 April 2013, see also specific paragraph and reconciliation pages 6 and 7.

2 pretax operating optimization and efficiencies

includes €11.9 million from the derivatives clearing contract with our industrial partner LCH.Clearnet which came into force on 1 April 2014 (adjusted1 clearing revenue for Q3 2013: €11.3 million).

Quarterly operational expenses excluding Depreciation & Amortization decreased by 8.2% on an adjusted1 basis to €68.5 million (Q3 2013 adjusted: €74.7m) or increased by +0.6% on a reported basis (Q3 2013 reported: €68.1m), thanks to very strong cost discipline. These expenses include € 6.8 million of costs related to the contract with LCH.Clearnet above mentioned (Q3 2013: €6.6m if this contract had been in place at that time). The EBITDA margin increased strongly in Q3 2014, to 44.1% compared to 38.3% in Q3 2013 adjusted 1 , or 38.0% Q3 2013 reported.

ICE transitional revenue and other income for the quarter was €10.3 million, reflecting primarily the IT support services provided to Liffe for €6.4 million for the operation of its derivatives exchanges in the UK and in the US. The impact of the Cannon Bridge House sublease rent in London was €3.4m in Q3 2014. As a reminder, this transitional revenue is not expected to be recurring beyond the fiscal year 2014.

Depreciation and Amortization decreased by €0.6 million, from €4.7 million in Q3 2013 to €4.1 million this quarter, as already outlined in the Q2 2014 results publication, due to the end of the amortization of the historic UTP value in April 2014.

Q3 2014 operating profit before exceptional items was €50.0 million, a 19.9% increase compared to Q3 2013 on an adjusted1 basis (+35.2% quarter on quarter reported).

€5.7 million of exceptional costs, mainly restructuring costs linked to Euronext's strategy to enhance its operational efficiency, were booked in Q3 2014.

A net release of a provision for an uncertain tax position of €18.6 million, relating mainly to the nondeductibility of intercompany interest paid, has led to a positive income tax item of €6.0 million in Q3 2014, while an expense of €12.5 million had been booked in Q3 2013. This release of tax provision offset the oneoff tax item booked during the first quarter of the year 2014 (which included derecognition of some deferred tax assets in connection with the demerger). Thus, for the first nine months of the year the tax rate stands at 30.5%, in line with the Company normalized tax rate.

As of 30 September 2014 the Company had cash and cash equivalents excluding financial investments of €238 million, and total debt of €248 million.

Business highlights

Listing

In Q3 2014 listing revenues amounted to €13.2 million, an increase of 17.9% compared to the €11.2 million achieved during the same period in 2013.

The listing business registered another good quarter this year thanks to among others the IPOs of six SMEs (versus three in Q3 2013), with a total of €1,725m of capital raised (versus €46m in Q3 2013). The largest IPO so far this year in Europe, NN Group, took place on Euronext markets, with €1.54 billion of capital raised and a total market capitalisation at listing of €7.35 billion.

A number of successful bond listings also took place. In September, Euronext Paris listed a RMB2 billion bond for the Bank of China, positioning Euronext Paris as a marketplace for renminbi bonds. The same month Agence Française de Development raised €1 billion in the first climate bond from a French Agency with the funds used to finance climate-change mitigation projects. This is the third such large green bond listed on Euronext following GDF Suez and Ile de France earlier in the year.

Trading

Cash trading

Q3 2014 was another strong quarter for our cash trading business with revenue increasing by 15.9% compared to Q3 2013. This is due to an increase of +11.1% in trading volumes in value traded, combined with a higher average fee per trade resulting from the fee change in February 2014.

The ETF segment was particularly dynamic with volume up 23% and the most active day of the year on 4 September 2014, when €572m were traded was a record.

The warrants and certificates segment reached a new record high at 40,208 products active at the end of August.

Euronext market share in domestic equities for the nine months to end of September remains stable at 64.4%, with a small variation during Q3 to 63.4%. In Q3 Euronext remained the most liquid trading venue on EuroStoxx50 component securities with 24.6% market share year-to-date.

Euronext has announced its intention to make evolutions on its SLP in Q4 2014 so as to enhance its impact on market share and ensure the costs of the scheme match its benefits.

Derivatives trading

Derivatives trading revenue increased by 3% in Q3 2014 compared to the same quarter last year, amounting to €11.3 million (Q3 2013: €11m). Although the global number of derivatives traded was nearly stable this quarter compared to Q3 2013, the product mix impacted favourably the average fee per lot. The 3% decrease in number of equity derivatives traded due to structural deleveraging and low volatility was more than offset by strong activity in commodities (+ 27% compared to Q3 2013). The average fee per lot has thus achieved a +3% increase this quarter.

On the Dutch equity derivatives market, as part of its plan to compete more effectively on the Dutch retail segment, Euronext announced this quarter a set of initiatives: a partnership with DEGIRO, the fastest growing on-line broker in Europe with growth in the Netherlands outpacing the rest of Europe, in the field of information provided to retail investors; and a targeted client flow trading fee reduction to be implemented in Q4 2014.

Work continues on developing our derivatives franchise through product innovation, with the expanded rapeseed complex and weekly index future expiry dates confirmed for launch in November and December respectively.

Market data & indices

Market data & indices quarterly revenue posted a strong increase in Q3 2014 compared to the same period last year: €24.1 million against €21 million, an increase of 14.8%.

This growth was driven by a strong take up of the Continental Derivatives data packages by clients and a significant increase in licensed products to Euronext indices.

In August, Euronext announced some price increases for level 2 data effective 1 January 2015. This increase reflects the investment made in systems and networks to reduce latency of the depth of order book data.

Post-trade

Clearing

The financial benefits of the derivatives clearing agreement with LCH.Clearnet came into force on 1 April 2014. To facilitate the comparison, Euronext has decided to provide adjusted figures for 2013, estimating the impact this contract would have had, had it been in place from Q2 2013 onwards.

For Q3 2014 Euronext recorded clearing revenues of €11.9 million, (Q3 2013 adjusted1 : €11.3 million, or Q3 2013 reported: €0.0 million). This 5.3% increase compared to the adjusted number for Q3 2013 results from the favourable impact of the derivatives product mix, as mentioned above.

Important progress is being made with LCH.Clearnet, our partner CCP, on the full operationalisation of our clearing contract, with a view to supporting product innovation and delivering maximum capital efficiencies to clients.

Settlement & Custody

Quarterly revenues for Interbolsa in Portugal are steady at €5.2 million in Q3 2014 (same amount in Q3 last year).

Market solutions & other

Revenues from market solutions decreased in Q3 2014 compared to the same quarter in 2013 (from €9.7 million to €8.4 million), as expected in the middle of the adaptation period to refocus the strategy of commercial technology.

As already explained in the interim results for the six-months of 2014, this was due to the replacement of some allocations (connectivity and colocation revenues) by a Service Level Agreement (SLA) effective 1 April 2014.

The contracts with four MENA clients for new UTP-hybrid platform have been signed this quarter, providing clients with a cost-effective, high-performance platform including Sharia compliant markets and offering an expansion path into derivatives markets. This ten-year commitment provides Euronext with a stable revenue stream and a basis for long-term product planning.

ICE transitional revenue & other income

In the third quarter ICE transitional revenue amounted to € 10.3 million, reflecting (i) the IT support services provided to Liffe for the operation of its derivatives exchanges in the UK and in the US and its foreseen migration onto the ICE platform; (ii) the invoicing of Cannon Bridge House on a full quarter basis (it started as of 19 May 2014) and (iii) ancillary services. This should not be compared to the revenues booked last year as, until 1 January 2014, the financial statements were combined financial statements and included recharge of shared costs made in accordance with the historical transfer pricing agreement between the legal entities which have been terminated and replaced by SLAs for providing services to ICE. These SLAs are priced separately for each service rendered in accordance with market prices.

Update on Euronext medium term objectives

Euronext has completed its separation from NYSE / ICE, repositioned its offering, focused on cost cutting and delivered on top line growth. Euronext continues to translate its vision into revenue growth, through executing on its highly focused product and platform roadmap so as to deliver shareholder return.

The current priorities focus on reinvigorating our existing core businesses by broadening the product scope to adjacencies and always further improving transparency, liquidity, innovation and customer service.

Key specific areas of focus are:

  • Finessing cash market liquidity schemes and market quality, aggressively repositioning and promoting ETFs and adjacent markets;

  • Building out a full pan-European service offering in our equity derivatives franchise;

  • Expanding our commodities franchise in the oilseed and dairy segments;

  • Full operationalizing our contract with LCH.Clearnet, our partner CCP;

  • Developing new Information Service revenue through technology upgrades to our index platform and corporate action delivery channels;

  • Embedding EnterNext as the leading market place for SMEs.

Looking ahead, we will leverage our deep bench of talent and the close relationships with our community of clients to strategically remix our business profile, expand businesses and accelerate product innovation.

  • Our major priority will be to grow our under exploited derivatives business through new product expansion in listed and OTC equity options and futures, index volatility products and commodity derivatives and ETFs.

  • In particular we will seek to position our business as a solution provider to clients implementing regulatorydriven change.

  • Euronext will also focus on developing non-transaction related revenue streams in the market data and index space.

In parallel, we are adapting our cost structure smoothly and Euronext's management is now in a position to deliver the €60 million efficiencies3 by the end of H1 2015 on a run-rate basis, 18 months ahead of schedule.

As a consequence of this top line expansion and the acceleration of the delivery of the €60 million of efficiencies, our objective to achieve an EBITDA margin in the range of 45% has already been achieved.

The execution team continue to work on additional costs benefits. The amount and timing are being worked through and will be announced in due time, together with an updated EBITDA margin objective. We do not anticipate any material change to the €90 million of anticipated restructuring expenses to generate these additional savings.

3 pretax operating optimisation and efficiencies

Corporate Highlights

• Corporate governance

The Supervisory Board and the committees are due to be completed before the end of the year:

  • The three Board members representing ICE resigned following the IPO of Euronext on 20 June 2014, while three Board members representatives of the Reference Shareholders will be appointed subject to regulatory approvals and to the Extraordinary General Meeting to be called before the end of the year 2014;
  • The Board Committees will be restructured by then.
  • Dialogue on capital requirements

A constructive dialogue has been initiated with the Dutch Minister of Finance. Euronext N.V. and Euronext Amsterdam N.V. filed "a statement of objections" regarding certain elements of the exchange license which the Dutch Minister of Finance granted shortly before the IPO. The dialogue focusses on the prudential requirements imposed at the level of Euronext N.V.. An oral hearing took place at the Ministry of Finance on 6 October 2014. Euronext is currently awaiting the decision of the Minister, but at this stage nothing can be said about the possible outcome of the procedure.

Non-IFRS financial measures

For comparative purposes, the company provides unaudited non-IFRS measures including:

  • Operational expenses excluding depreciation and amortization,
  • EBITDA, EBITDA margin.

We define the non-IFRS measures as follow:

  • Operational expenses excluding depreciation and amortization as the total of Salaries and employee benefits, and Other operational expenses,
  • EBITDA as the operating profit before exceptional items and depreciation and amortization,
  • EBITDA margin as the operating profit before exceptional items and depreciation and amortization, divided by revenue.

Non-IFRS financial measures are not meant to be considered in isolation or as a substitute for comparable IFRS measures and should be read only in conjunction with the consolidated financial statements.

Adjusted third quarter 2013 Clearing revenue and Clearing expenses

For comparative purpose, for the three month period ending 30 September 2013, the changes in clearing revenue, clearing expenses and the subsequent impact on third party revenue, operational expenses excluding depreciation and amortization have also been included when adjusted for the new derivative clearing agreement with LCH.Clearnet. This was included based on our estimate of the amount of revenue we would have received and the amount of associated expenses we would have paid under the Derivatives Clearing Agreement, based on our actual trading volume for the periods presented and assuming the Derivatives Clearing Agreement had been in effect in the third quarter of 2013.

Reconciliation with IFRS income statement

The reconciliation of Non-IFRS measurements and adjusted measures with the IFRS income statement for Q3 2013 on a stand alone basis is presented hereafter:

Millions of € Q3'2014 Q3'2013
reporte
d
Adjustm
ent
Q3'2013
Adjuste
d
Var vs
reporte
d
Var vs
adjuste
d
Third party revenue 112,3 90,6 11,3 101,9 24,0% 10,3%
o/w Clearing revenue 11,9 11,3 11,3
ICE transitional revenue & Other Income 10,3 19,2 19,2
Total revenue 122,6 109,8 11,3 121,1 11,7% 1,3%
Operational expenses excl. depreciation and
amortization 68,5 68,1 6,6 74,7 0,6% -8,2%
o/w Clearing expenses 6,8 6,6 6,6
EBITDA 54,1 41,7 4,7 46,4 29,8% 16,7%
EBITDA margin 44,1% 38,0% 38,3%
Depreciation & amortization 4,1 4,7 4,7
Operating profit before exceptional items 50,0 37,0 4,7 41,7 35,2% 19,9%

Cash markets activity

Q3 2014 Q3 2013 YTD 2014 YTD 2013
Nb trading days 66 66 191 191
NUMBER OF TRANSACTIONS (Buy and sells) (reported trades included)
Q3 2014 Q3 2013 Change
%
YTD 2014 YTD 2013 Change
%
YTD
Total Cash Market (shares, warrants, trackers, bonds) 90 182 060 88 351 574 2,1% 277 920 588 266 371 424 4,3%
ADV Cash Market (shares, warrants, trackers, bonds)1 366 395 1 338 660 2,1% 1 455 082 1 394 615 4,3%

TRANSACTION VALUE ( € million - Single counted)

Eur million Q3 2014 Q3 2013 Change
%
YTD 2014 YTD 2013 Change
%
YTD
Total Cash Market (shares, warrants, trackers, bonds)377 400 339 633 11,1% 1 187 915,3 1 058 666,7 12,2%
ADV Cash Market (shares, warrants, trackers, bonds) 5 718 5 146 11,1% 6 219,5 5 542,8 12,2%

LISTINGS

Number of Issuers
Change
sept-14 sept-13 % YOY
EURONEXT (Euronext, Alternext and Free Market) 1 302 1 303 -0,1%
EnterNext 736 747 -1,5%

EURONEXT (Euronext, Alternext)

CAPITAL RAISED on Equities on Primary and Secondary Market

(mln of €) Q3 2014 Q3 2013 Change % YTD 2014 YTD 2013 Change % Nb New Listings 6 3 100,0% 43 21 Money Raised IPO 1 725 46 3680,9% 8 368 963 768,7% Follow-ons on Equities 6 754 4 571 47,8% 20 891 19 808 5,5% Follow-ons on Corporate Bonds 6 342 14 179 -55,3% 43 404 49 620 -12,5%

of which ENTERNEXT

CAPITAL RAISED on Equities on Primary and Secondary Market

(mln of €)
Change Change
Q3 2014 Q3 2013 % YTD 2014 YTD 2013 %
Nb New Listings 5 5 0,0% 33 13
Money Raised IPO 138 46 202,0% 754 151 398,3%
Follow-ons on Equities 1 258 946 32,9% 3 361 2 012 67,1%
Follow-ons on Corporate Bonds 632 902 -30,0% 1 961 2 068 -5,2%
Derivatives markets activity
Q3 2014 Q3 2013 YTD 2014 YTD 2013
Nb trading days 66 66 191 191
Volume (in lots)
Change Jan 2014 till Jan 2013 till Sept Change %
Q3 2014 Q3 2013 % Sept 2014 2013 YTD
Equity 30 556 010 31 542 366 -3% 95 950 287 104 610 620 -8,3%
Index 15 098 755 14 644 602 3% 46 286 424 48 928 362 -5,4%
Futures 11 108 301 10 637 179 4% 34 166 123 35 963 066 -5,0%
Options 3 990 454 4 007 423 0% 12 120 301 12 965 296 -6,5%
Individual Equity 15 457 255 16 897 764 -9% 49 663 863 55 682 258 -10,8%
Futures 336 20 >500% 17 688 362 >500%
Options 15 456 919 16 897 744 -9% 49 646 175 55 681 896 -10,8%
Commodity 3 666 574 2 879 858 27% 9 222 846 7 610 710 21,2%
Futures 2 910 158 2 341 640 24% 7 527 676 6 315 596 19,2%
Options 756 416 538 218 41% 1 695 170 1 295 114 30,9%
Other 33 367 38 776 -14% 70 842 161 286 -56,1%
Futures 0 195 7 1 363 -99,5%
Options 33 367 38 581 -14% 70 835 159 923 -55,7%
Total Futures 14 018 795 12 979 034 8% 41 711 494 42 280 387 -1,3%
Total Options 20 237 156 21 481 966 -6% 63 532 481 70 102 229 -9,4%
Total Euronext 34 255 951 34 461 000 -1% 105 243 975 112 382 616 -6,4%

Open Interest

Change
Sep-14 Sep-13 % YOY
Equity 13 796 329 17 556 286 -21%
Index 1 088 362 1 209 148 -10,0%
Futures 474 028 485 611 -2,4%
Options 614 334 723 537 -15,1%
Individual Equity 12 707 967 16 347 138 -22,3%
Futures 210 0
Options 12 707 757 16 347 138 -22,3%
Commodity 1 106 577 926 725 19,4%
Futures 431 436 386 884 11,5%
Options 675 141 539 841 25,1%
Other 10 655 14 260 -25,3%
Futures 0 83
Options 10 655 14 177 -24,8%
Total Futures 905 674 872 578 3,8%
Total Options 14 007 887 17 624 693 -20,5%
Total Euronext 14 913 561 18 497 271 -19,4%

Reported operating profit, quarterly results

In thousands of euros Nine months
ended 30
September
2014
Three months
ended 30
September
2014
Three
months
ended 30
June 2014
Three months
ended 31
March 2014
Nine months
ended 30
September
2013
Three months
ended 30
September
2013
Three
months
ended 30
June 2013
Three months
ended 31
March 2013
reported reported reported reported reported reported reported reported
9M'14 Q3 2014 Q2 2014 Q1 2014 9M'13 Q3 2013 Q2 2013 Q1 2013
Listing 45 723 13 186 18 923 13 614 37 758 11 181 15 432 11 145
Cash trading 120 848 37 712 39 557 43 579 104 001 32 539 35 629 35 833
Derivatives trading 34 346 11 282 10 420 12 644 37 614 10 958 12 545 14 111
Market data & indices 69 532 24 096 23 547 21 889 61 375 20 987 20 235 20 153
Clearing 22 507 11 920 10 587 - - - - -
Custody and Settlement 16 292 5 210 5 522 5 560 15 927 5 217 5 335 5 375
Market solutions & other 25 092 8 397 7 767 8 928 31 072 9 677 10 350 11 045
Other income 498 498 - - - - - -
Third party revenue and other income 334 838 112 301 116 323 106 214 287 747 90 559 99 526 97 662
ICE transitional revenue 26 832 10 329 9 175 7 328 61 429 19 196 19 849 22 384
Total revenue and other income 361 670 122 630 125 498 113 542 349 176 109 755 119 375 120 046
Salaries and employee benefits (95 175) (31 343) (32 391) (31 441) (97 866) (28 700) (32 394) (36 772)
Depreciation and amortisation (12 956) (4 148) (4 078) (4 730) (14 588) (4 716) (5 094) (4 778)
Systems and communications (17 046) (6 808) (4 578) (5 660) (19 338) (7 141) (5 790) (6 407)
Professional services (36 984) (11 409) (13 058) (12 517) (43 224) (14 698) (13 473) (15 053)
Clearing expenses (13 211) (6 824) (6 387) - - - - -
Accommodation (18 185) (6 980) (6 306) (4 899) (12 960) (4 150) (4 313) (4 497)
PSA retrocession - - - - (12 488) (4 612) (3 305) (4 571)
Other expenses (16 723) (5 160) (4 701) (6 862) (25 488) (8 774) (7 882) (8 832)
Other operational expenses (102 149) (37 181) (35 030) (29 938) (113 498) (39 375) (34 763) (39 360)
Operating profit before exceptional items 151 390 49 958 53 999 47 433 123 224 36 964 47 124 39 136
Exceptional items (25 613) (5 726) (7 726) (12 161) (2) - (2) -
Operating profit 125 777 44 232 46 273 35 272 123 222 36 964 47 122 39 136
Nine months ended
30 September 30 September
In thousands of euros (except per share data) 2014 2013
unaudited unaudited
Third party revenue and other income 334 838 287 747
ICE transitional revenue and other income 26 832 61 429
Total revenue and other income 361 670 349 176
Salaries and employee benefits (95 175) (97 866)
Depreciation and amortisation (12 956) (14 588)
Other operational expenses (102 149) (113 498)
Operating profit before exceptional items 151 390 123 224
Exceptional items (25 613) (2)
Operating profit 125 777 123 222
Net financing income / (expense) (5 139) 483
Results from equity investments 2 853 7 944
Profit before income tax 123 491 131 650
Income tax expense (37 677) (22 765)
Profit for the period 85 814 108 885
Profit attributable to:
– Owners of the parent 85 814 108 885
– Non-controlling interests - -
Basic earnings per share 1,23 1,56
Diluted earnings per share 1,22 1,56

Condensed Interim Consolidated Statement of Comprehensive Income

Nine months ended
30 September 30 September
In thousands of euros 2014 2013
unaudited unaudited
Profit for the period 85 814 108 885
Other comprehensive income for the period
Items that will be subsequently reclassified to profit or loss:
– Currency translation differences 6 231 (2
760)
Items that will not be reclassified to profit or loss:
– Remeasurements of post-employment benefit obligations (6 630) (12 719)
Income tax impact 2 042 3 180
Total comprehensive income for the period 87 457 96 586

Condensed Interim Consolidated Balance Sheet

In thousands of euros As at 30 September
2014
As at 31 December
2013
Assets unaudited audited
Non-current assets
Property, plant and equipment 27 331 27 782
Goodwill and other intangible assets 319 704 323 916
Deferred income tax assets 10 990 21 951
Equity investments 109 704 48 075
Other receivables 2 259 2 046
Total non-current assets 469 988 423 770
Current assets
Trade and other receivables 89 534 121 268
Income tax receivable 135 1 180
Related party loans - 268 778
Derivative financial instruments - 1 893
Financial investments 15 000 -
Cash and cash equivalents 238 024 80 827
Total current assets 342 693 473 946
Total assets 812 681 897 716
Equity/Parent's net investment and liabilities
Equity/Parent's net investment
Issued capital 112 000 -
Share premium 116 554 -
Retained earnings 81 394 -
Parent's net investment - 234 790
Other comprehensive income (loss) 534 (1 109)
Total equity/parent's net investment 310 482 233 681
Non-current liabilities
Borrowings 248 194 -
Related party borrowings - 40 000
Deferred income tax liabilities 499 530
Post-employment benefits 15 362 9 488
Provisions 22 207 5 246
Other liabilities 2 100 2 925
Total non-current liabilities 288 362 58 189
Current liabilities
Borrowings 123 -
Related party borrowings - 407 025
Current income tax liabilities 81 874 49 483
Trade and other payables 115 164 143 661
Provisions 16 677 5 677
Total current liabilities 213 838 605 846
Total equity/parent's net investment and liabilitie s
812 682
897 716

Condensed Interim Consolidated Statement of Cash Flows

Nine months ended
In thousands of euros 30 September
2014
30 September
2013
unaudited unaudited
Profit before income tax 123 491 131 650
Adjustments for:
- Depreciation and amortisation 12 956 14 588
- Share based payments (b) 3 459 4 839
- Gain on disposal of equity investments - (7 944)
- Changes in working capital 16 114 (45 406)
Income tax paid (16 296) 9 689
Net cash provided by operating activities 139 724 107 416
Cash flow from investing activities
Proceeds from disposal of equity investment - 27 804
Net purchase of short-term investments (13 048) -
Purchase of property, plant and equipment (4 784) (1 995)
Purchase of intangible assets (5 400) (2 245)
Proceeds from sale of property, plant and equipment and intangible assets 729 13
Net cash provided by / (used in) investing activities (22 503) 23 577
Cash flow from financing activities
Proceeds from borrowings, net of transaction fees 247 903 -
Net interest paid (663) -
Share Capital repayment (161 500) -
Transfers (to) / from Parent, net (a) 91 947 62 982
Net change in short-term loans due to/from Parent (137 948) (133 538)
Net cash provided by / (used in) financing activities 39 739 (70 556)
Non-cash exchange gains/(losses) on cash and cash equivalents 238 875
Net increase / (decrease) in cash and cash equivalents 157 198 61 312
Cash and cash equivalents - Beginning of period 80 827 13 560
Cash and cash equivalents - End of period 238 025 74 872

Financial calendar

Full year 2014 results 25 February 2015 Q1'2015 results 7 May 2015

Contact

Media Caroline Nico +33 1 49 27 10 74 [email protected]

Analysts & investors Stéphanie Bia +33 1 49 27 12 68 [email protected]

About Euronext

Euronext is the primary exchange in the Euro zone with over 1 300 issuers worth €2.6 trillion in market capitalization, an unmatched blue chip franchise consisting of 20+ issuers in the EURO STOXX 50® benchmark and a strong diverse domestic and international client base.

Euronext operates regulated and transparent equity and derivatives markets. Its total product offering includes Equities, Exchange Traded Funds, Warrants & Certificates, Bonds, Derivatives, Commodities and Indices. Euronext also leverages its expertise of running markets by providing technology and managed services to third parties. Euronext operates regulated markets, Alternext and the Free Market: in addition it offers EnterNext, which facilitates SMEs' access to capital markets.

Disclaimer

This press release is for information purposes only and is not a recommendation to engage in investment activities. This press release is provided "as is" without representation or warranty of any kind. Whilst all reasonable care has been taken to ensure the accuracy of the content, Euronext does not guarantee its accuracy or completeness. Euronext will not be held liable for any loss or damages of any nature ensuing from using, trusting or acting on information provided. No information set out or referred to in this publication may be regarded as creating any right or obligation. The creation of rights and obligations in respect of financial products that are traded on the exchanges operated by Euronext's subsidiaries shall depend solely on the applicable rules of the market operator. All proprietary rights and interest in or connected with this publication shall vest in Euronext. This press release speaks only as of this date. Euronext refers to Euronext N.V. and its affiliates. Information regarding trademarks and intellectual property rights of Euronext is located at https://www.euronext.com/terms-use. © 2014, Euronext N.V. - All rights reserved.

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