Euronext NV reported that its revenue was up 20% and profit almost doubled in the first half of 2006 compared with a year ago.
Revenue reached 557.7 million euros, up 20.9% on from the first half of 2005. Expenses increased by 16.3 million euros, primarily due to legal and advisory costs, including 12.7 million euros of investment banking fees paid when the merger agreement with the New York Stock Exchange was signed. Its recurring costs remained stable.
First half earnings before interest, taxes, depreciation and amortization totalled 220.3 million euors, an increase of 57.3% compared to 2005. EBITA margin was 39.5%, up from 30.4% achieved during the first six months of last year. Net profit increased from 98.4 million euros in 2005 to 193.7 million euros this year, up 97%.
Commenting on its future outlook, the firm said that, “After the healthy first six months of the year, July and August have, as usual, been less active. However Euronext is confident in its ability to deliver a strong set of results for the full year 2006 even if the markets over the last four months of the year are not as active as during the first half of the year.
Jean François Théodore, chairman of the management board and CEO of Euronext, added, “The excellent financial results Euronext has the pleasure to announce today provide further confirmation of the strength of our unique market model, with business volumes reaching new records on both cash and derivatives markets. This reflects the success of our strategy of consolidation and integration combined with diversification of products and activities.
“Our teams are now working actively in close cooperation with the regulatory authorities and the various stakeholders related to the proposed combination with the NYSE,” he added. “Our tie-up with the NYSE will be presented to the extraordinary general meeting of our shareholders in early December and finalized in Q1, 2007. This will open the way for the creation of the world’s largest global exchange, with Euronext and NYSE as the founding partners.”
Euronext reports strong revenue, profit growth
Exchange sets December vote for NYSE merger, which would create the largest global exchange
- By: James Langton
- August 30, 2006 August 30, 2006
- 09:14