(News Bulletin 247) – The pan-European stock exchange operator is making progress on the stock market as its results clearly exceeded expectations in the first quarter, thanks to higher revenues and tight costs.

Euronext passes the quarterly results test with honors. The pan-European stock exchange operator, which manages the markets of Amsterdam, Paris, Lisbon, Brussels, Milan, Oslo and Dublin, delivered accounts above expectations for the first three months of the year. The stock market is appreciating, with Euronext shares gaining 3.8% around 4:10 p.m. this Wednesday.

From January to March, Euronext generated total revenues of 402 million euros, an increase of 8%, when the consensus expected 394 million euros, according to Bank of America.

The company explains that its non-volume dependent revenues, such as the custody and settlement of securities or the provision of data, represented 58% of the total, a stable rate over one year.

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The dynamic bond market

Jefferies highlights that trading activities, for their part, exceeded expectations, generating revenues of 138.4 million euros, or 3% more than consensus.

Income from spot share trading certainly fell by 1.6% to 70.6 million euros. But Euronext’s market share of spot share volumes, at 64.6%, exceeded Jefferies’ expectations (64.3%).

Furthermore, revenues from trading volumes on fixed rate products (largely bonds) were dynamic with an increase of 34.5% over the quarter to 35.2 million euros.

Apart from revenues, Euronext has kept its costs under control. Underlying operating expenses excluding depreciation and amortization fell 2% to 150.7 million euros, 5% lower than consensus, explains Bank of America. “Given this positive result, the company is on track to exceed its target of 625 million euros in costs for 2024,” judges the bank.

As a result, Euronext’s adjusted earnings per share (1.58 euros) and its adjusted gross operating profit (Ebitda), of 251 million euros, both exceeded the consensus by 7%. The adjusted Ebitda margin was also established at 62.5% against expectations of 59.7%.

Both Jefferies and Bank of America confirmed their buy advice on the value, deeming the stock cheap.

“With a stock trading at around 13.5 times 2025 adjusted earnings per share, Euronext remains one of the cheapest stock exchange operators in the world (global sector average around 22.5). convincing term, which will be presented at the next Euronext Capital Market Day on November 8, will be a determining factor in knowing whether this discount can begin to be absorbed,” explains Jefferies.