Pan-European market infrastructure Euronext today published its financial results for the first quarter of 2024.
Foreign exchange trading revenue increased by 12.7% to €7.1m in Q1 2024, supported by increasing volumes, slightly offset by a negative impact on volume mix.
On a constant currency basis, FX trading revenue was up 14.1% compared to Q1 2023.
Across all segments, trading income increased to €138.4 million (+7.4%), driven by record results in fixed income (€35.2 million, +34.5%) and electricity trading energy (12.2 million euros, +23.7%). This strong performance was achieved despite a 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 issues.
Adjusted EBITDA was €251.3 million (+15.0%) and adjusted EBITDA margin was 62.5% (+3.8 points).
Adjusted net profit was €164.2 million (+11.7%) and adjusted earnings per share at €1.58 (+15.0%).
Reported net income was €139.7m (+44.8%), reflecting the positive base effect of the €36.0m pre-tax non-underlying provision related to the settlement agreement termination fee in Q1 2023 .
Net debt to reported EBITDA was 1.7x at the end of March 2024 and net debt to adjusted EBITDA at 1.6x. The S&P rating was upgraded in May 2024 to BBB+ Positive Outlook.
The Board of Directors, after approval by the Supervisory Board, decided to propose to the Annual General Meeting for approval the payment of a dividend of €2.48 per common share. The dividend will be distributed equally (in proportion to the number of shares held) to holders of common stock on the dividend record date set for May 22, 2024 (dividend date set for May 21, 2024 and payment date for May 23, 2024). This dividend represents a payout ratio of 50% of reported net income, in accordance with Euronext’s current dividend policy.