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Euronext profit jumps on strong cash trading, SME listings

Published 06/05/2015, 07:50
Updated 06/05/2015, 07:52
© Reuters.  Euronext profit jumps on strong cash trading, SME listings
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(Reuters) - Pan-European exchange Euronext (PA:ENX) reported a 38.4 percent jump in first-quarter operating profit, helped by strong cash trading activity and a continued surge in the listings of smaller companies.

Euronext, which operates bourses in Paris, Amsterdam, Brussels, London and Lisbon, also said on Wednesday that it had continued efforts to cut costs during the quarter by entering restructuring talks in France.

The listings of Cnova NV (O:CNV), GrandVision NV (AS:GVNV) and Refresco Gerber NV (AS:RFRG) were among the largest of 14 new floatations that took place in the quarter, pushing Euronext's listing revenue up 12.6 percent to 15.3 million euros (11 million pounds).

Euronext's cash trading business recorded its best quarter for volumes since 2010, with revenue rising 19.6 percent to 52.1 million euros.

Operating profit before exceptional items rose to 63.3 million euros in the three months ended March 31.

Chief Operating Officer Jos Dijsselhof said the exchange operator's "mission" would not change after his surprise appointment late on Tuesday as Euronext's interim CEO.

Euronext continues to look for a replacement for Dominique Cerutti, who is leaving earlier than planned.

"The appointment of an insider signals to us that the current strategy of revenue growth coupled with an ongoing reduction in costs will be maintained," RBC Europe analyst Peter Lenardos wrote in a note on Tuesday.

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