Earnings Release • Aug 7, 2014
Earnings Release
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CONTACT - Media: CONTACT - Investor Relations:
Amsterdam, Brussels, Lisbon, London and Paris – 7 August 2014 – Euronext today announced its results for the second quarter and for the first six months of 2014.
"Euronext has achieved significant milestones in the first six months of the year. In this tight timeframe, the team successfully separated our company from ICE and completed its IPO through crisp execution. Our focus now is to reposition Euronext as a leading capital raising center, leveraging on our strong but underexploited franchises, our capacity to innovate and the favorable sector dynamics to expand and remix our businesses. Euronext's strengthened management team is fully committed to executing our strategic plan and thus generating the value we committed to our shareholders. We have confidence that we will reach our €60 million of efficiencies and we are working on an aggressive plan to accelerate timing." said Dominique Cerutti, CEO and Chairman of the Managing Board of Euronext NV.
Third party quarterly revenue increased by +5.2% on an adjusted1 basis to €116.3 million (Q2 2013 adjusted: €110.6m) or +16.9% on a reported basis (Q2 2013 reported: €99.5m), driven by very strong activity in the listing business and healthy volumes on the cash trading business. These quarterly revenue include €10.6 million from the derivatives clearing contract with LCH.Clearnet which came into force on April 1st, 2014 (adjusted1 clearing revenue for Q2 2013: €11.1 million).
1 for the six month period and the three month period ending 30 June 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 pre tax operating optimisation and efficiencies
Quarterly operational expenses excluding Depreciation & Amortization slightly decreased by -8.5% on an adjusted1 basis to €67.4 million (Q2 2013 adjusted: €73.7m) or increased by +0.4% (Q2 2013 reported: €67.2m), thanks to tight cost control. These expenses include €6.4 million of costs related to the contract with LCH.Clearnet above mentioned (Q2 2013: €6.5m if this contract had been in place at that time). As a result of this positive jaws effect, the EBITDA margin reached €58.1 million in Q2 2014, or 46.3% (Q2 2013 adjusted1 : 43.5%, or Q2 2013 reported: 43.7%)
ICE transitional revenue and other income for the quarter was €9.2 million, reflecting primarily the IT support services provided to Liffe for €6.5 million for the operation of its derivatives exchanges in the UK and in the US. This transitional revenue is not expected to be recurring beyong the fiscal year 2014.
H1 2014 EBITDA amounted to €110.2 million an increase of +9.5% versus H1 2013 adjusted1 , or +14.7% versus H1 2013 reported.
Depreciation and Amortization decreased by €1 million, from €5.1 million in Q2 2013 to €4.1 million this quarter, due to the end of the amortization of the historic UTP value in April 2014.
H1 2014 operating profit before exceptional items was €101.4 million (Q2 2014: €54 million), an increase of +11.7% compared to H1 2013 on an adjusted1 basis (+4.6% quarter on quarter adjusted1 ), or +17.6% compared to H1 2013 reported (+14.6% quarter on quarter reported).
€19.9 million of exceptional costs were booked in the first-half of 2014 of which €7.7 million in the second quarter. These costs are mainly restructuring costs, in line with Euronext's strategy to enhance operational efficiency and achieve cost savings.
The tax rate for the quarter was 36.9%, whereas for the first-half it was 54.7% due to some one-off tax items booked during the first quarter of the year (which include derecognition of some deferred tax assets in connection with the demerger).
As of June 30th, 2014 the Company had cash and cash equivalents of €186.5 million, and total debt of €248 million.
Listing revenues amounted to €18.9 million in Q2 2014, an increase of 22.6% compared to the €15.4 million achieved during the same period in 2013. For the first-half of the year listing revenues increased to €32.5 million, up 22.4%, compared to €26.6 million in H1 2013.
The listing business saw a marked increase in activity in Q2 2014 with total capital raised on our markets amounting to €33.6 billion compared to €28.4 billion during the same period last year. Total capital raised on our markets in H1 2014 amounts to €57.6 billion compared to €53 billion during the same period last year. In particular, there was a substantial increase in capital raised through IPOs which amounted to €4.3 billion in Q2 2014 taking the total capital raised in IPOs in the first half to €6.5 billion, and exceeding the €3.1 billion raised over 2013 as a whole.
Listing activity across our markets was driven largely by the return of listings through IPOs from large caps but also from SMEs (Small and Medium sized companies) and benefiting from the launch of Enternext, our dedicated market place one year ago. Eight large cap listings were completed compared to one for the same period last year and a total of 25 SME listings were achieved in the first half of 2014 versus 9 during the same period last year. The pipe for the rest of the year confirms this positive trend.
With 50 new ETF listings, Euronext was the only European exchange to grow its franchise over the period on a net basis. Our structured products business has grown to its highest ever level, with 35,230 structured products live at the end of June.
Volumes on our cash markets have been very active in the second quarter of the year, with average daily value increasing by 5% compared to the same quarter last year. Total value traded for the period increased by 3.8% despite a lower number of trading days in Q2 2014 compared to the same quarter last year (62 versus 63).
Cash markets saw a material increase in trading activity across the first half of 2014, with average daily volumes for the period up 13% versus 2013, during which time Euronext experienced four of the ten highest volume traded days since 2012 and on 20 June, the strongest single day of trading in CAC 40 constituents of €7.046 billion since 2012. Market share remains strong at 65% for the period.
Cash trading revenues increased by 11% in Q2 2014 compared to the same quarter last year (€39.6 million versus €35.6 million). This was driven by the increase in volumes above mentioned combined with the full benefits of the fee change implemented in February 2014.
Revenues for the first half stood at €83.1 million compared to €71.5 million, an increase of 16.3%.
In Q2 total equity derivatives volumes decreased by 15% compared to the same quarter in 2013, due to lower volatility. Commodity products recorded 12% increase in Q2 versus 2013. As with the cash markets, volumes were impacted by a lower number of trading days this year compared to last year (62 versus 63).
Over the first six months of the year, broadly in line with peers, average daily volumes in financial futures and options declined by 9%. The CAC 40 futures contract remains Europe's most heavily traded national index future and the second most heavily traded index future overall.
Over the same H1 period, commodities average daily volumes rose 17.4% and Euronext experienced the most active week ever in terms of volumes (from 3 March 2014 to 7 March 2014), with average daily 83,552 lots traded. The open interest stands at 750,000 lots, the highest level ever.
As a result of this low volatility, revenues for Q2 2014 are down by €2.1 million, from € 12.5 million in Q2 2013 to € 10.4 million this quarter. For the first six months of the year, revenues decreased by 13.5%, from €26.7 million in 2013 to €23.1 million this year.
Market data & indices quarterly revenues posted a strong increase in Q2 compared to the same period last year: €23.5 million against €20.2 million, an increase of 16.4%. This growth was driven by the implementation of Euronext fees on derivatives following the separation from Liffe as well as the full impact of some fee changes in cash and reference data products that took place in previous quarters, in spite of a slight decrease in the number of data units.
First half revenues were up 12.5%, from €40.4 million in H1 2013 to €45.4 million in H1 2014.
Post-trade
The financial benefits of the derivatives clearing agreement with LCH.Clearnet came into force on April 1st , 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 Q2 2014 Euronext recorded clearing revenues of €10.6 million, (Q2 2013 adjusted1 : €11.1 million, or Q2 2013 reported: €0.0 million), in line with the decrease in the derivatives trading activity above mentioned although partly compensated by a positive product mix.
Settlement & Custody revenue are derived from the operations of Interbolsa in Portugal. Quarterly revenues are steady, at €5.5 million in Q2 2014 compared to €5.3 million in Q2 2013. Revenues for the first six months of the year amounted to €11.1 million in 2014 compare to €10.7 million in the previous year.
Revenues from market solutions strongly decreased in Q2 2014 compared to the same quarter in 2013 (from €10.3 million to €7.8 million).
This was due to the replacement of some allocations (SFTI and Colo revenues) by an SLA (Service Level Agreement) effective April 1st, 2014 and to a lesser extent a decrease in Exchange Solutions revenues. For the first-half of the year, revenues were €16.7 million, a 22% decrease (H1 2013: €21.4 million).
In the second quarter ICE transitional revenue amounted to €9.2 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 which started as of May 19th, 2014 and (iii) ancillary services . This should not be compared to the revenues booked last year as, until January 1st , 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.
In the first half 2014 Euronext started executing on its repositioning and its innovation roadmap and has launched a number of new products and services.
Euronext has launched a number of products and services in the Exchange Traded Fund (ETF) business: launch of a multicurrency trading service for ETF, including for the first time on a U.S. or European exchange, the Chinese Yuan Renminbi (CNY) and the Hong Kong Dollar (HKD); Euronext became the first exchange to start ETF NAV (Net Asset Value) trading; Launch of the RFS (Request for Size) service for ETFs listed on our regulated markets.
In commodities, the combined Rapeseed complex remains on track for Q4, offering the industry both Rapeseed meal and Rapeseed oil futures and options in individual contracts.
The successful take up of our New Market Participant scheme for commodities, with 146 traders across 20 clients from eight cities signed up generated 120,520 lots or 4.2% of volume since May.
The delivery process for milling wheat contract has been strengthened.
The skimmed milk powdered contract has been suspended, pending revamp to deliver a more effective risk solution for the dairy industry aligned with the expiry of EU milk-quotas from 1 April 2015.
In equity derivatives, the world's first index based Exchange for Physicals remains on track for Q1 2015. Spotlight options in the Netherlands and in Belgium have gone live and weekly expiries on CAC and AEX have been announced for Q3, supported by BNP and Société Générale. The launch of an enlarged suite of 86 single stock futures on a range of liquid Euronext names, will be complemented by the roll-out of Single Stock Futures on 127 Eurozone names during August and September and a further 140 products in non-Euro names before year end.
A block trading regime on the CAC 40 future has been introduced to better facilitate wholesale trading in that important benchmark contract.
A new and improved liquidity provider scheme for the PSI future contract has been launched.
Euronext announced the launch of a new PEA PME index family as well as the 3x leverage BEL20 and PSI20 indices and improved license contracts for the issuance of index leverage products.
In addition to the funding provided to the real economy through our markets, Euronext, through EnterNext our SME market place, announced an agreement with Morningstar in June whereby it will provide independent quantitative equity ratings on 220 TMT companies listed across our Euronext markets to help raise the sector's visibility and expand the pool of investors.
Separately the approval from the UK FCA in June to operate a UK market further enables Euronext to be become a partner of choice for international companies looking to access Europe's capital markets.
Euronext strengthened its Managing Board with the recruitment of Jos Dijsselhof as Chief Operating Officer (COO) to drive change in our operations and deliver efficiencies. Jos Dijsselhof also assumes the role of acting CEO of Euronext Amsterdam following the resignation of Cees Vermaas as of July 31st, 2014. Earlier in the half-year Euronext also boosted its senior management team by the appointment of three leaders for its financial derivatives, commodities and cash businesses reporting to Lee Hodgkinson, CEO of Euronext London and Head of Markets and Global Sales, as well as the appointment of Hans Schinkel as Senior Vice President of Human Resources.
For comparative purposes, the company provides unaudited non-IFRS measures including :
We define the non-IFRS measures as follow:
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.
For comparative purpose, for the six month period and the three month period ending 30 June 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 from 1 April 2013.
The reconciliation of Non-IFRS measures and adjusted measures with the IFRS income statement is presented hereafter:
| Million of € | Q2'2014 | Q2'2013 reported |
Adjustment | Q2'2013 adjusted |
Var vs reported |
Var vs adjusted |
|---|---|---|---|---|---|---|
| Third party revenue | 116.3 | 99.5 | 11.1 | 110.6 | 16.9% | 5.2% |
| o/w Clearing revenue | 10.6 | 11.1 | 11.1 | |||
| ICE transitional revenue & Other Income | 9.2 | 19.8 | 19.8 | |||
| Total revenue | 125.5 | 119.4 | 11.1 | 130.4 | 5.1% | -3.8% |
| Operational expenses excl. depreciation & amortization | 67.4 | 67.2 | 6.5 | 73.7 | 0.4% | -8.5% |
| o/w Clearing expenses | 6.4 | 6.5 | 6.5 | |||
| EBITDA | 58.1 | 52.2 | 4.5 | 56.7 | 11.2% | 2.4% |
| EBITDA margin | 46.3% | 43.7% | 43.5% | |||
| Depreciation & amortization | 4.1 | 5.1 | 5.1 | |||
| Operating profit before exceptional items | 54.0 | 47.1 | 4.5 | 51.6 | 14.6% | 4.6% |
| Million of € | H1'2014 | H1'2013 reported |
Adjustment | H1'2013 Adjusted |
Var vs reported |
Var vs adjusted |
|---|---|---|---|---|---|---|
| Third party revenue | 222.5 | 197.2 | 11.1 | 208.2 | 12.9% | 6.9% |
| o/w Clearing revenue | 10.6 | 11.1 | 11.1 | |||
| ICE transitional revenue & Other Income | 16.5 | 42.2 | 42.2 | |||
| Total revenue | 239.0 | 239.4 | 11.1 | 250.5 | -0.2% | -4.6% |
| Operational expenses excl. depreciation & amortization | 128.8 | 143.3 | 6.5 | 149.8 | -10.1% | -14.0% |
| o/w Clearing expenses | 6.4 | 6.5 | 6.5 | |||
| EBITDA | 110.2 | 96.1 | 4.5 | 100.6 | 14.7% | 9.5% |
| EBITDA margin | 46.1% | 40.2% | 40.2% | |||
| Depreciation & amortization | 8.8 | 9.9 | 9.9 | |||
| Operating profit before exceptional items | 101.4 | 86.3 | 4.5 | 90.8 | 17.6% | 11.7% |
| Nb trading days | June 2014 21 |
May 2014 21 |
June 2013 20 |
Q2 2014 62 |
Q2 2013 63 |
YTD 2014 YTD 2013 125 125 |
|---|---|---|---|---|---|---|
| NUMBER OF TRANSACTIONS (Buy and sells) (reported trades included) |
| June 2014 | May 2014 | Change % MOM |
June 2013 | Change % YOY |
Q2 2014 | Q2 2013 | Change % QoQ |
Jan 2014 till June 2014 |
Jan 2013 till June 2013 |
Change % YTDoYTD |
|
|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash Market (shares, warrants, trackers, bonds) |
28 603 064 | 29 487 242 | -3% | 30 320 778 | -5,7% | 87 296 066 92 600 470 | -5,7% | 187 738 528 178 019 850 | 5,5% |
| Eur million | June 2014 | May 2014 | Change % MOM |
June 2013 | Change % YOY |
Q2 2014 | Q2 2013 Change % | Jan 2014 till June 2014 |
Jan 2013 till | June 2013 Change % | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash Market (shares, warrants, trackers, bonds) |
125 382,8 | 129 289,2 | -3,0% | 119 577,6 | 4,9% | 386 044 | 371 973 | 3,8% | 810 515,7 | 719 033,9 | 12,7% |
| Index value | Index value | Change % | Index value | Change % | ||
|---|---|---|---|---|---|---|
| 30/06/'14 | 31/05/'14 | MOM | 31/12/'13 | YTD | ||
| N100 | 840,88 | 852,19 | -1,3% | 809,95 | 3,8% | |
| N150 | 2 092,0 | 2 151,3 | -2,8% | 1 910,8 | 9,5% | |
| Alternext Index | 1 041,2 | 1 016,4 | 2,4% | 865,2 | 20,3% | |
| PEA Index | 1 250,04 | 1 296,59 | -3,6% | 1 083,47 | 15,4% |
| Number of Issuers | ||||||||
|---|---|---|---|---|---|---|---|---|
| Change % | Change % | December | ||||||
| June 2014 | May 2014 | MOM | June 2013 | YOY | 2013 | Change % | ||
| EURONEXT (Euronext, Alternext and | ||||||||
| Free Market) | 1 305 | 1 307 | -0,2% | 1 316 | -0,8% | 1304 | 0,1% | |
| EnterNext | 741 | 739 | 0,3% | 747 | -0,8% | 749 | -1,1% | |
| (mln of €) | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Change % | Change % | Jan 2014 till | Jan 2013 till | ||||||||
| June 2014 | May 2014 | MOM | June 2013 | YOY | Q2 2014 | Q2 2013 Change % | June 2014 | June 2013 Change % | |||
| Nb New Listings | 11 | 4 | 6 | 26 | 12 | 34 | 15 | ||||
| Money Raised IPO | 4 049 | 21 | > 500 % | 880 | 360,01% | 4 311 | 924 | 366,40% | 6 449 | 929 | 593,99% |
| Follow-ons | 7 371 | 2 584 | 185,3% | 5 648 | 30,50% | 11 602 | 13 538 | -14,30% | 14 137 | 16 680 | -15,25% |
(mln of €) June 2014 May 2014 Change % MOM June 2013 Change % YOY Q2 2014 Q2 2013 Change % Jan 2014 till June 2014 Jan 2013 till June 2013 Change % Nb New Listings 5 4 4 20 8 25 9 Money Raised IPO 94 21 339,9% 68 38,48% 338 112 201,39% 550 117 369,56% Follow-ons 1 097 54 1913,5% 254 331,49% 1 742 923 88,75% 2 168 3 704 -41,46%
| Nb trading days | June 2014 21 |
May 2014 21 |
June 2013 20 |
Q2 2014 62 |
Q2 2013 63 |
YTD 2014 125 |
YTD 2013 125 |
|||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Volume (in lots) | ||||||||||||
| June 2014 | May 2014 | Change % MOM |
June 2013 | Change % YOY |
Q2 2014 | Q2 2013 | Change % | Jan 2014 till June 2014 |
Jan 2013 till June 2013 Change % |
|||
| Equity | 9 741 646 10 052 602 | -3% 11 389 784 | -14% 29 883 853 35 297 216 | -15% | 65 394 277 | 73 068 254 | -10,5% | |||||
| Index | 4 484 832 | 4 367 289 | 3 | % 6 191 993 | -28% 14 012 827 17 888 583 | -22% | 31 187 669 34 283 760 | -9,0% | ||||
| Futures | 3 344 733 | 3 327 070 | 1% | 4 440 791 | -25% | 10531621 | 13219642 | -20% | 23 057 822 | 25 325 887 | -9,0% | |
| Options | 1 140 099 | 1 040 219 | 10% | 1 751 202 | -35% | 3481206 | 4668941 | -25% | 8 129 847 | 8 957 873 | -9,2% | |
| Individual Equity | 5 256 814 | 5 685 313 | -8% 5 197 791 | 1 | % 15 871 026 17 408 633 | -9% | 34 206 608 38 784 494 -11,8% | |||||
| Futures Options |
17 176 5 239 638 |
19 5 685 294 |
>500% -8% |
11 5 197 780 |
>500% 1% |
17212 15853814 |
236 17408397 |
>500% -9% |
17 352 34 189 256 |
342 >500% 38 784 152 -11,8% |
||
| Commodity | 698 932 | 750 982 | -7% | 699 653 | 0 | % 2 377 770 | 2 117 491 | 12% | 5 556 272 | 4 730 852 17,4% | ||
| Futures | 577 831 | 606 353 | -5% | 559 783 | 3% | 1969419 | 1786379 | 10% | 4 617 518 | 3 973 956 16,2% | ||
| Options | 121 101 | 144 629 | -16% | 139 870 | -13% | 408351 | 331112 | 23% | 938 754 | 756 896 24,0% | ||
| Other | 5 195 | 5 763 | -10% | 14 615 | -64% | 16 798 | 50 913 | -67% | 37 475 | 122 510 -69,4% | ||
| Futures | 0 | 1 | 138 | 2 | 281 | -99% | 7 | 1 168 -99,4% | ||||
| Options | 5 195 | 5 762 | -10% | 14 477 | -64% | 16796 | 50632 | -67% | 37 468 | 121 342 -69,1% | ||
| Total Futures | 3 939 740 | 3 933 443 | 0 | % 5 000 723 | -21% 12 518 254 15 006 538 | -17% | 27 692 699 29 301 353 -5,5% | |||||
| Total Options | 6 506 033 | 6 875 904 | -5% 7 103 329 | -8% 19 760 167 22 459 082 | -12% | 43 295 325 48 620 263 -11,0% | ||||||
| Total Euronext | 10 445 773 10 809 347 | -3% 12 104 052 | -14% 32 278 421 37 465 620 | -14% | 70 988 024 77 921 616 -8,9% | |||||||
| Open Interest | |||||
|---|---|---|---|---|---|
| June 2014 | May 2014 | June 2013 | |||
| Equity | 13 716 297 15 970 372 16 420 794 | ||||
| Index | 1 090 567 | 1 253 124 | 1 163 824 | ||
| Futures | 497 749 | 538 201 | 425 249 | ||
| Options | 592 818 | 714 923 | 738 575 | ||
| Individual Equity | 12 625 730 14 717 248 15 256 970 | ||||
| Futures | 0 | 50 | 0 | ||
| Options | 12 625 730 | 14 717 198 | 15 256 970 | ||
| Commodity | 747 342 | 641 133 | 618 847 | ||
| Futures | 336 403 | 274 852 | 288 692 | ||
| Options | 410 939 | 366 281 | 330 155 | ||
| Other | 9 496 | 10 266 | 12 561 | ||
| Futures | 0 | 1 | 123 | ||
| Options | 9 496 | 10 265 | 12 438 | ||
| Total Futures | 834 152 | 813 104 | 714 064 | ||
| Total Options | 13 638 983 15 808 667 16 338 138 | ||||
| Total Euronext | 14 473 135 16 621 771 17 052 202 |
| Six months | Three months | Three months | Six months | Three months | Three months | |
|---|---|---|---|---|---|---|
| ended 30 | ended 30 June | ended 31 March | ended 30 | ended 30 June | ended 31 March | |
| In thousands of euros | June 2014 | 2014 | 2014 | June 2013 | 2013 | 2013 |
| reported | reported | reported | reported | reported | reported | |
| H1 2014 | Q2 2014 | Q1 2014 | H1 2013 | Q2 2013 | Q1 2013 | |
| Listing | 32,537 | 18,923 | 13,614 | 26,577 | 15,432 | 11,145 |
| Cash trading | 83,136 | 39,557 | 43,579 | 71,462 | 35,629 | 35,833 |
| Derivatives trading | 23,064 | 10,420 | 12,644 | 26,656 | 12,545 | 14,111 |
| Market data & indices | 45,436 | 23,547 | 21,889 | 40,388 | 20,235 | 20,153 |
| Clearing | 10,587 | 10,587 | - | - | - | - |
| Custody and Settlement | 11,082 | 5,522 | 5,560 | 10,710 | 5,335 | 5,375 |
| Market solutions & other | 16,695 | 7,767 | 8,928 | 21,395 | 10,350 | 11,045 |
| Third party revenue | 222,537 | 116,323 | 106,214 | 197,188 | 99,526 | 97,662 |
| ICE transitional revenue | 16,503 | 9,175 | 7,328 | 42,233 | 19,849 | 22,384 |
| Total revenue | 239,040 | 125,498 | 113,542 | 239,421 | 119,375 | 120,046 |
| Salaries and employee benefits | (63,832) | (32,391) | (31,441) | (69,166) | (32,394) | (36,772) |
| Depreciation and amortisation | (8,808) | (4,078) | (4,730) | (9,872) | (5,094) | (4,778) |
| Systems and communications | (10,238) | (4,578) | (5,660) | (12,197) | (5,790) | (6,407) |
| Professional services | (25,575) | (13,058) | (12,517) | (28,526) | (13,473) | (15,053) |
| Clearing expenses | (6,387) | (6,387) | - | - | - | - |
| Accommodation | (11,205) | (6,306) | (4,899) | (8,810) | (4,313) | (4,497) |
| PSA retrocession | - | - | - | (7,876) | (3,305) | (4,571) |
| Other expenses | (11,563) | (4,701) | (6,862) | (16,714) | (7,882) | (8,832) |
| Other operational expenses | (64,968) | (35,030) | (29,938) | (74,123) | (34,763) | (39,360) |
| Operating profit before exceptional items | 101,432 | 53,999 | 47,433 | 86,260 | 47,124 | 39,136 |
| Exceptional items | (19,887) | (7,726) | (12,161) | (2) | (2) | - |
| Operating profit | 81,545 | 46,273 | 35,272 | 86,258 | 47,122 | 39,136 |
| Six months ended | ||
|---|---|---|
| 30 June | 30 June | |
| In thousands of euros (except per share data) | 2014 | 2013 |
| unaudited | unaudited | |
| Third party revenue | 222,537 | 197,188 |
| ICE transitional revenue and other income | 16,503 | 42,233 |
| Total revenue | 239,040 | 239,421 |
| Salaries and employee benefits | (63,832) | (69,166) |
| Depreciation and amortisation | (8,808) | (9,872) |
| Other operational expenses | (64,968) | (74,123) |
| Operating profit before exceptional items | 101,432 | 86,260 |
| Exceptional items | (19,887) | (2) |
| Operating profit | 81,545 | 86,258 |
| Net financing income / (expense) | (4,449) | 1,717 |
| Results from equity investments | 2,850 | 7,947 |
| Profit before income tax | 79,946 | 95,922 |
| Income tax expense | (43,704) | (10,310) |
| Profit for the period | 36,242 | 85,612 |
| Profit attributable to: | ||
| – Owners of the parent | 36,242 | 85,612 |
| – Non-controlling interests | - | - |
| Earnings per share-basic and diluted | 0.52 | 1.22 |
| Six months ended | ||
|---|---|---|
| 30 June | 30 June | |
| In thousands of euros | 2014 | 2013 |
| unaudited | unaudited | |
| Profit for the period | 36,242 | 85,612 |
| Other comprehensive income for the period | ||
| Items that will be subsequently reclassified to profit or loss: | ||
| – Currency translation differences | 5,269 | (6,610) |
| Items that will not be reclassified to profit or loss: | ||
| – Remeasurements of post-employment benefit obligations | (3,163) | (12,505) |
| Income tax impact | 982 | 3,126 |
| Total comprehensive income for the period | 39,330 | 69,623 |
| In thousands of euros | As at 30 June 2014 |
As at 31 December 2013 |
|---|---|---|
| Assets | unaudited | audited |
| Non-current assets | ||
| Property, plant and equipment | 28,346 | 27,782 |
| Goodwill and other intangible assets | 320,417 | 323,916 |
| Deferred income tax assets | 9,985 | 21,951 |
| Equity investments | 109,704 | 48,075 |
| Other receivables | 2,240 | 2,046 |
| Total non-current assets | 470,692 | 423,770 |
| Current assets | ||
| Trade and other receivables | 107,545 | 121,268 |
| Income tax receivable | 554 | 1,180 |
| Related party loans | - | 268,778 |
| Derivative financial instruments | - | 1,893 |
| Financial investments | 10,000 | - |
| Cash and cash equivalents | 186,533 | 80,827 |
| Total current assets | 304,632 | 473,946 |
| Total assets | 775,324 | 897,716 |
| Equity/Parent's net investment and liabilities | ||
| Equity/Parent's net investment | ||
| Issued capital | 112,000 | - |
| Share premium | 116,565 | - |
| Retained earnings | 31,679 | - |
| Parent's net investment | - | 234,790 |
| Other comprehensive income (loss) | 1,979 | (1,109) |
| Total equity/parent's net investment | 262,223 | 233,681 |
| Non-current liabilities | ||
| Borrowings | 248,020 | - |
| Related party borrowings | - | 40,000 |
| Deferred income tax liabilities | 533 | 530 |
| Post-employment benefits | 11,726 | 9,488 |
| Provisions | 23,896 | 5,246 |
| Other liabilities | 2,169 | 2,925 |
| Total non-current liabilities | 286,344 | 58,189 |
| Current liabilities | ||
| Borrowings | 165 | - |
| Related party borrowings | - | 407,025 |
| Current income tax liabilities | 99,701 | 49,483 |
| Trade and other payables | 113,563 | 143,661 |
| Provisions | 13,328 | 5,677 |
| Total current liabilities | 226,757 | 605,846 |
| Total equity/parent's net investment and liabilities | 775,324 | 897,716 |
| Six months ended | ||
|---|---|---|
| 30 June | 30 June | |
| In thousands of euros | 2014 | 2013 |
| unaudited | unaudited | |
| Profit before income tax | 79,946 | 95,922 |
| Adjustments for: | ||
| - Depreciation and amortisation | 8,808 | 9,872 |
| - Share based payments | 3,326 | 3,591 |
| - Gain on disposal of equity investments | - | (7,944) |
| - Changes in working capital | (6,742) | (29,811) |
| Income tax paid | (5,025) | 14,570 |
| Net cash provided by operating activities | 80,313 | 86,200 |
| Cash flow from investing activities | ||
| Proceeds from disposal of equity investment | - | 27,804 |
| Net purchase of short-term investments | (8,073) | 1,366 |
| Purchase of property, plant and equipment | (3,941) | (914) |
| Purchase of intangible assets | (4,132) | (1,091) |
| Proceeds from sale of property, plant and equipment and intangible assets | 708 | 13 |
| Net cash provided by / (used in) investing activities | (15,438) | 27,178 |
| Cash flow from financing activities | ||
| Proceeds from borrowings, net of transaction fees | 248,185 | - |
| Net interest paid | (114) | (757) |
| Share Capital repayment | (161,500) | - |
| Transfers (to) / from Parent, net | 91,948 | (20,179) |
| Net change in short-term loans due to/from Parent | (137,948) | (94,658) |
| Net cash provided by / (used in) financing activities | 40,571 | (115,594) |
| Non-cash exchange gains/(losses) on cash and cash equivalents | 260 | (43) |
| Net increase / (decrease) in cash and cash equivalents | 105,706 | (2,259) |
| Cash and cash equivalents - Beginning of period | 80,827 | 13,560 |
| Cash and cash equivalents - End of period | 186,533 | 11,301 |
Semi-annual financial report 2014 is available on www.euronext.com
| Q3'2014 results | 6 November 2014 |
|---|---|
| Full year 2014 results | 26 February 2015 |
| Media | |
|---|---|
| Caroline Nico | +33 1 49 27 10 74 |
| [email protected] |
Analysts & investors Stéphanie Bia +33 1 49 27 12 68 [email protected]
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.
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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