Greek deal boots Irish stock market-owner Euronext

Euronext NV reported results that exceeded expectations in the first quarter. Sales rose 28% for the equity markets segment, the fastest growth among its divisions, supported by volatile markets, momentum in the Greek market, and dynamic growth in ETFs. The newly acquired Athens stock exchange contributed to revenue. Adjusted earnings before interest, taxes, depreciation and amortisation increased 17% to €343.2m, €18.6m above expectations. Performance also benefited from solid custody and settlement activity and strong growth in data solutions. Management linked the trend to diversification and noted that volumes in early second-quarter weeks remained important. Broader market activity across Europe supported exchange operators and banks.

"Sales jumped 28pc for the equity markets segment in the first quarter, the fastest growth of any division and ahead of analyst estimates. Buoyed by volatile markets, the performance was also "supported by the growing momentum on the Greek market and by the dynamic growth in ETFs", Euronext said."

""It's the eighth straight quarter of double-digit growth," chief executive officer Stephane Boujnah said in an interview. "It's a real trend, a payoff of our strong diversification strategy." Trading volatility has been a boon to exchange operators and banks throughout the first quarter."

""We are also benefiting from the market volatility, in particular in the cash equities market," Mr Boujnah said, adding that volumes in the first weeks of the second quarter were still important. "The market has pivoted toward thinking the war in Iran will maybe last a bit longer and Europe is benefiting from a search for diversification coming from Asia and Middle East investors"."

"The pan-European exchange operator also exceeded expectations in its non-volume segments, thanks to solid activity in custody and settlement, coupled with strong growth in its data solutions. Euronext's adjusted earnings before interest, taxes, depreciation and amortisation reached €343.2m in the period, a 17pc increase on last year and €18.6m above expectations."

Read at Irish Independent