Euronext's Q4 Earnings Exceed Market Expectations
(Reuters) -Euronext reported higher than expected fourth quarter revenue on Thursday, helped by strong fixed income trading and the expansion of its clearing business.
The pan-European stock exchange operator recorded revenue of 415.8 million euros ($431.68 million) in the last three months of 2024, while analysts had expected 408.8 million euros in a consensus compiled by Euronext.
Revenue growth was driven by "record performance" in fixed income trading, robust results from its non-trading related businesses and the European Clearing expansion, the group said in a statement.
Euronext has been changing its business mix, shifting away from trading of cash and derivatives towards higher valued custody & settlement and fixed income trading.
The public offerings trend in Europe is picking up after a disappointing year in 2024, Euronext CEO Stephane Boujnah told Reuters.
"Many observers are underestimating what is ongoing as we speak in terms of shift of appetite and interest from global investors towards Europe because of the valuation gaps between the U.S. and Europe," Boujnah said.
Ben & Jerry's maker Unilever on Thursday announced it was picking Amsterdam over London and New York as the primary listing for its ice cream business. "The Euronext integrated market is now twice larger than the liquidity pool of the London Stock Exchange. I think it was a powerful component in the decision," Boujnah said. European stock exchanges including Euronext and the London Stock Exchange have struggled to attract many new listings in recent years as more companies stay private and the booming U.S. market lures the biggest names.
German exchange operator Deutsche Boerse on Tuesday also posted fourth quarter results ahead of market expectations, with a 25% rise in net profit.
($1 = 0.9632 euros)
(Reporting by Alban Kacher in Gdansk; Editing by Milla Nissi and Susan Fenton)
