Euronext NV reported higher profits for the full year 2005, and plans to return money to shareholders. It also contemplates a merger with the Deutsche Börse.

The firm said that good cost control and favourable market conditions, especially in the second half of the year, helped Euronext to achieve a record year. Revenues for the full year reached 961.9 million euros ($1.33 billion), up 8.5% from the 886.8 million euros achieved in 2004. At the same time, total costs decreased from 646.8 million euros in 2004 to 643.4 million euros this year.

Euronext’s earnings before interest, taxes and amortization (EBITA) stood at 318.5 million euros for the full year of 2005, with an EBITA margin of 33.1%, a strong improvement in profitability compared to the 27.1% achieved last year. Net profit rose from 149.7 million euros in 2004 to 241.8 million euros in 2005; mainly due to strong operational performance and the end of the goodwill amortization of 52 million euros.

On the strength of its results, Euronext unveiled a plan to return 1 billion euros to shareholders, via higher dividends, an additional “super dividend”, and a buyback of 500 million euros in 2006 and 2007.

Euronext said it believes that further consolidation between international exchanges will continue to deliver significant shareholder value and benefits to users. “Euronext’s diversified business model makes it a unique and attractive partner for exchanges worldwide,” it noted. “At the same time, the business will deliver significant growth in both profits and revenues with or without further consolidation in the short term.”

The exchange said it will monitor Nasdaq’s pursuit of the London Stock Exchange, but it noted that it was pleased to hear recently that it is Deutsche Börse’s preferred partner. “While there are differences between the respective business models and views, Euronext welcomes the invitation to discuss these issues and intends to work constructively with Deutsche Börse to try to find creative solutions to bridge the gaps,” it said. “ Conditions for international exchange consolidation are especially favourable at present, combining buoyant global markets, strong business fundamentals and a willingness amongst shareholders and companies to engage. Euronext fully intends to play a leading role in this process.”

In other news, Euronext also announced the closing of its acquisition of CompanynewsGroup, a leading corporate news distributor in Europe. CompanynewsGroup is now a fully owned subsidiary of Euronext.

Euronext is the first genuinely cross-border exchange organization in Europe. It provides services for regulated stock and derivatives markets in Belgium, France, the Netherlands and Portugal, as well as derivatives only in the UK.