Euronext
saw an 11.7% year-over-year drop in its revenue from forex trading during first
quarter 2023, the pan-European stock exchange group disclosed on Tuesday in its
latest financial performance report. The figure came in at €6.3 million during the
period.
Furthermore,
compared to the last quarter of 2022, the forex revenue also decreased by 6% from
€6.7 million. The
decline comes as Euronext FX, the group’s electronic communication network for
forex trading, reported a 13% decline in its spot FX volume. The total volume dropped to $1.4
trillion with the
average daily volume going down by 14.4% to $21 billion.
In addition, asset classes, Euronext reported significant decreases in most segments,
contributing to a 14.5% drop in its trading revenue which touched down at
€128.9 million compared to the prior year period.
In detail,
the exchange operator saw declines in its cash (23.7%) and derivatives trading
(7.5%) revenues. On the contrary, fixed income and power trading revenues gained 7% and 8.4%,
respectively.
Euronext Overall Revenue Shrinks in Q1
Overall,
Euronext reported a consolidated revenue and income of €372.3 million during
the first quarter 2023. The figure is a 5.9% drop from €395.7 million posted
during Q1 2022.
Explaining
the performance, Euronext said the consolidated revenue went down “mainly due
to the strong comparison base for equity-related trading and FX rate variation
effects.” It added that this decline was partially offset by the robust
performance of its non-volume related activities and better performance of
fixed income and power trading activities.
“Non-volume
related revenue accounted for 58% of underlying Group revenue in Q1 2023,
compared to 55% in Q1 2022, reflecting the successful diversification towards
non-volume related activities and strong trading activity in Q1 2022 due to
volatility spikes,” Euronext explained.
Speaking
further on the performance, Stéphane Boujnah, Euronext’s CEO, noted that the
firm saw strong organic growth from its data and technology activities. He
added that the firm saw “record quarters” in its fixed income and power trading
businesses.
“We
continued to operate in accordance with our cost discipline, in line with our
2023 cost guidance,” said Boujnah, who also doubles as Chairman of Euronext’s
Managing Board. “Overall, this translated into the second highest adjusted net
income ever, at €147.1 million.”
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This article was written by Solomon Oladipupo at www.financemagnates.com.
