Published by Global Banking and Finance Review
Posted on May 14, 2025
By Alessandro Parodi
(Reuters) -Euronext's revenues hit record levels in the first quarter on the back of "exceptional market volatility", the European stock exchange operator said on Wednesday, and its core profit was stronger than analysts expected.
The group, which operates exchanges in Amsterdam, Brussels, Dublin, Lisbon, Milan, Oslo and Paris, has benefited from disruptions caused by U.S. President Donald Trump's tariffs, which led to financial market turmoil.
CEO Stephane Boujnah said the strong first quarter was a positive signal in terms of efforts to create "a stronger, more innovative and more competitive European capital market."
Last month, Boujnah said there were flows of money leaving the U.S. to be re-invested in Europe due to the trade uncertainties.
RISING VOLUMES, FEW LISTINGS
The Paris-listed group reported a 17% year-on-year increase in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to 294.1 million euros ($329.92 million) for the quarter ended March 31, helped by record fixed-income trading, it said.
That was above the 284 million euros analysts had expected on average in a consensus provided by the company.
The company's revenues rose by 14.1% to 458.5 million euros in the same period, beating a consensus forecast of 448.3 million.
KBC Securities said in a note on Tuesday: "We expect the erratic nature of Trump's policies to continue causing elevated volumes going forward."
Euronext said that its European Common Prospectus would address the need to boost initial public offerings (IPOs) in Europe ahead of proposed new listing rules, which it expects will come into effect in June 2026.
Stock exchange operators, including Euronext and its European peers Deutsche Boerse and the London Stock Exchange, have struggled to attract many new listings as more companies stayed private and the booming U.S. stock market attracted the biggest names.
Euronext recorded eight new IPOs between January and April, down from 13 in the same period of 2024.
The company is now planning to reissue a paper challenging the belief that U.S.-listed firms attract higher valuations than their European peers, its spokesperson told Reuters, while launching initiatives to encourage investment in the region's defence industry.
($1 = 0.8914 euros)
(Reporting by Alessandro Parodi in Gdansk. Editing by Jane Merriman)
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