The FINANCIAL — On February 15 Euronext announced its results for the full year 2016.
Strong operating performance despite pressure on trading volumes:
Decrease in revenue: -4.3%, to €496.4 million (2015: €518.5 million). Efficient yield management partially offset lower trading volumes (average trading volumes decreased by -15.3% vs 2015 for cash products and by -7.2% for derivatives).
Cost discipline resulted in strong reduction in operational expenses excluding depreciation and amortization: -9.4%, to €212.5 million (2015: €234.7 million).
€15.6 million of cumulated gross efficiencies achieved since Q2 2016 as part of the cost cutting programme announced in the Agility for Growth plan, including some releases of accruals for €3.3 million.
Stable EBITDA at €283.9 million translated into a strong improvement in EBITDA margin, to 57.2% (2015: 54.7%).
Significant increase in EPS (basic): +14.6%, to €2.83 (2015: €2.47).
In line with dividend policy, €1.42 per share dividend proposed for approval at the AGM on 19 May 2017, which represents an increase of 14.5% compared to €1.24 per share paid last year.
Important milestones achieved in the deployment of Agility for Growth Strategic plan.
Optionality to deploy capital thanks to cash flow generation profile and strong balance sheet.
Disciplined M&A approach combined with potential acquisition of LCH.Clearnet SA, a strong value proposition for Euronext’s stakeholders.
“The Euronext team is proud of the results we announce today for 2016. In a year marked by lower volumes on our markets that induced, as guided with our Q3 2016 results, a 4.3% decrease in revenue, we have managed to maintain our EBITDA in absolute terms stable compared to last year. Our cost base has been significantly reduced, and is now fully covered by our non-volume related revenue only. As a result, our profitability and EPS increased significantly and we are in a position to propose for the approval of our Annual General Meeting on 19 May 2017,based on our consistent dividend policy, the payment of a dividend of €1.42 per share, increased by 14.5% compared to last year. These results demonstrate Euronext’s continuous capability to service our shareholders and customers, and to deliver value against a tough trading environment. 2017 will be a critical year for our industry landscape. We will remain focused on executing our Agility for Growth strategy and maximizing opportunities that may arise, as we did with the agreement to potentially acquire LCH.Clearnet S.A.” said Stéphane Boujnah, Chairman and CEO of the Managing Board of Euronext NV.