Euronext lifts revenue target in new three-year plan (updated)

Allfunds

07/11/2024 17:25

(Adds CEO quote paragraph 7, details on results paragraph 11,
recasts headline)
    By Alban Kacher and Mathieu Rosemain
       Nov 7 (Reuters) - Euronext  ENX.PA  raised its revenue
targets through to 2027 and beat third quarter profit
expectations on Thursday, helped by growth in its clearing and
non-volume related activities.
    The pan-European stock exchange also announced a share
buyback programme of up to 300 million euros ($324.33 million),
to be launched on Nov. 11.
    Euronext said it expects its revenue and core profit to grow
by more than 5% a year on average between 2023 and 2027 and that
it would aim for capital expenditure of between 4% and 6% of
total revenue over that period.
    "For the first time since its IPO (in 2014), Euronext is
present throughout the entire capital market value chain.
Euronext is now fully equipped to step up to the next level of
revenue growth acceleration," the group said in a statement.
    The exchange had announced its previous strategic plan in
November 2021. It then targeted compound annual revenue growth
of between 3% and 4% for 2020-2024 and EBITDA growth of between
5% and 6% over the same period. It also forecast CAPEX of
between 3% to 5% of total revenue.
    These targets were completed in the third quarter, three
months ahead of guidance, the exchange said. 
    Euronext confirmed ruling out a bid on Allfunds  ALLFG.AS 
in the foreseeable future, "because the company as it stands
today doesn't meet the standards of our investment policy,"
group CEO Stéphane Boujnah told Reuters, adding the group
remains open to selective acquisitions based on its strong cash
flow generation.
    Euronext operates exchanges in Amsterdam, Brussels, Dublin,
Lisbon, Milan, Oslo and Paris.
    It recorded a net profit of 159.5 million euros in the third
quarter, beating analysts' forecast of 147.6 million euros,
according to a company-compiled consensus. 
    The group's performance in July-September was driven by the
expansion of its clearing activity, where revenue rose 19.3%
increase year-on-year, and continued cost discipline, Euronext
said.
    It also saw a "strong performance" of non-volume related
revenue, which represented 58% of total revenue, the group
added. 
    
($1 = 0.9250 euros)

 (Reporting by Alban Kacher and Mathieu Rosemain; Editing by
Susan Fenton and David Evans)
 ((alban.kacher@thomsonreuters.com))