<p>Euronext (EPA: ENX), a pan-European market infrastructure provider, published its fourth quarter 2022 results, reporting a 6.2 percent yearly dive in overall revenue and income to €347 million. </p><p>Listing revenue improved 3.1 percent to €53.5 million, whereas the trading revenue, which brought €116.3 million, came in 12.1 percent lower. Cash trading, which dominates the trading revenue division, witnessed a 17.9 percent decline to €65.1 million, followed by a 5.4 percent dip in derivatives trading to €13.4 million.</p><p>Strong Euronext FX Revenue</p><p>On the contrary, <a href=”https://www.financemagnates.com/tag/euronext-fx/” target=”_blank” rel=”follow”>spot FX trading </a>on the platform strengthened by 9.5 percent to €6.7 million. It improved by a 4 percent rise in average trading volume to $20.16 billion. However, the FX revenue decreased by 2.2 percent on a like-for-like basis. Additionally, the FX revenue declined from €7.3 million reported in the <a href=”https://www.financemagnates.com/institutional-forex/euronext-returns-flat-spot-fx-trading-revenue-in-q3-2022/” target=”_blank” rel=”follow”>previous two quarters</a>.</p><p>For the full year, revenue from FX trading came in 21 percent higher at €28.4 million, which is a record on the platform. The company highlighted that the trading volume and revenue on Euronext FX benefited from geographic expansion and product diversification despite the vanishing <a href=”https://www.financemagnates.com/terms/v/volatility/” class=”terms__main-term” id=”7fd330d9-8855-4c31-9770-cb52b328c117″ target=”_blank”>volatility</a> since the beginning of the year.</p><p>However, <a href=”https://www.financemagnates.com/institutional-forex/euronext-fxs-spot-volume-drops-7-to-14-trillion-in-q3-22/” target=”_blank” rel=”follow”>FX activities</a> are going dull in 2023, as the ADV on Euronext FX for January dipped 12.1 percent to $19.6 billion.</p><p>Quarterly Profits Declined</p><p>The adjusted EBITDA of Euronext for the quarter went down 12 percent to €187.9 million. Moreover, the EBITDA margin dropped to 54.1 percent from 57.7 percent. On top of that, the company turned an operating profit of €134.2 million, which is 10.9 percent below the previous figure. The pre-tax income came in at €140.8 million, with the net figure down 11.9 percent to €99.3 million.</p><p>Euronext ended the year with diluted adjusted earnings per share (EPS) of €1.10, which is 18 percent down from the previous year.</p><p>However, the year’s overall performance turned out to be very impressive. With a 9.3 percent jump in yearly revenue, Euronext ended the year with a net income of €437.8 million, which is 5.9 percent higher.</p><p>“In 2022, Euronext reached record revenue and income above €1.4 billion, notably resulting from the strong performance of our non-volume related activities, together with efficient management of revenue capture and of cash trading market share,” said Stéphane Boujnah, the Chair and CEO of Euronext.</p>
This article was written by Arnab Shome at www.financemagnates.com.
