Euronext Plans More Acquisitions After Buying Irish Stock Market

Euronext NV will acquire more companies this year to help diversify its revenues.

The Amsterdam-based exchange operator is open to tie-ups with other European exchanges like its combination with Irish Stock Exchange Plc — to complete in March — that gives Euronext a foothold in the ETF market, said Chief Executive Officer Stephane Boujnah on a call after reporting full-year earnings.

“We will continue to pursue in disciplined and systematic manner opportunities to acquire and contribute to diversifying the top line of Euronext,” said Boujnah.

The start of the revised markets in financial instruments directive last month could see new venues called systematic internalizers, or SIs, squeeze revenues, pushing exchanges to diversify their revenue sources. Last month, Euronext acquired InsiderLog, an insider list management company.

Euronext’s stock price fell 1.7 percent at 10:06 a.m. in Amsterdam.

Trading volumes have so far made a strong start in 2018 with cash volumes up 20 percent and derivatives average daily trading up 26 percent, compared with January 2017. There has been no negative impact from the SI regime so far, but Euronext has said that it’s “unfair” to allow SIs to have more flexible pricing, said Lee Hodgkinson, the outgoing head of Euronext London on the call.

  • FY EBITDA climbs 4.9 percent to 297.8 million euros
  • FY revenue up 7.2 percent to 532.3 million euros
  • FY dividend per share 1.73 euros vs 1.42 euros a year ago

Source: Bloomberg

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