Pan-European market infrastructure Euronext today published its financial results for the first quarter of 2024.
FX trading revenue was up 12.7% at €7.1 million in Q1 2024, supported by growing volumes, slightly offset by a negative volumes mix impact.
On a like-for-like basis at constant currencies, FX trading revenue was up 14.1% compared to Q1 2023.
Across all segments, trading revenue grew to €138.4 million (+7.4%), driven by record results in fixed income (€35.2 million, +34.5%) and power trading (€12.2 million, +23.7%). This strong performance was achieved despite the softer environment for cash trading (€70.6 million, -1.6%) and derivatives trading (€13.4 million, -10.2%) .
Underlying operating expenses excluding D&A were €150.7 million (-2.0%), due to continued cost control and some positive one-off releases.
Adjusted EBITDA was €251.3 million (+15.0%) and adjusted EBITDA margin was 62.5% (+3.8 pts).
Adjusted net income was €164.2 million (+11.7%) and adjusted EPS was €1.58 (+15.0%).
Reported net income was €139.7 million (+44.8%), reflecting the positive base effect of the €36.0 million pre-tax non-underlying provision related to the termination fee of the clearing agreement in Q1 2023.
Net debt to reported EBITDA was at 1.7x at the end of March 2024 and net debt to adjusted EBITDA at 1.6x. S&P rating was upgraded in May 2024 to BBB+ Positive Outlook.
The Managing Board, upon the approval of the Supervisory Board, has decided to propose for approval at the AGM the payment of a dividend of €2.48 per ordinary share. The dividend would be distributed evenly (pro rata the number of shares held) to holders of ordinary shares on the dividend record date set on 22 May 2024 (ex-dividend date is set on 21 May 2024 and payment date is set on 23 May 2024). This dividend represents a pay-out ratio of 50% of the reported net income, in line with Euronext’s current dividend policy.
