Euronext controls expenses to post Q1 profit rise

[LONDON] Pan-European exchange Euronext reported a nearly 8 per cent rise in first-quarter operating profit on Thursday despite a fall in revenue, as the company controlled its expenses.

Euronext, which operates bourses in Paris, Amsterdam, Brussels, London and Lisbon, said operating profit before exceptional items rose to 68.1 million euros (S$96.5 million) in the quarter ended March 31, from 63.3 million euros a year earlier.

Cost-cutting efforts in 2015 helped the company cut its quarterly expenses by 12.1 per cent, excluding depreciation and amortization, to 54.7 million euros, Euronext said in its statement.

The company posted a quarterly Ebitda margin of 56.8 per cent, up from the 52.2 per cent it reported a year ago.

Third party revenue fell 2.7 per cent to 126.5 million euros in the quarter following a drop in trading activity and listings.

Euronext's listing revenue fell 7.2 per cent to 14.2 million euros in the quarter.

The company earlier reported no new listings in February due to highly volatile market conditions, compared with nine new listings in the period last year, that raised more than 2 billion euros.

Global markets have been erratic recently amid worries about China's economy and falling oil and commodity prices.

Euronext said in April that current market conditions significantly slowed worldwide IPO activity during the first quarter of the year, which was the weakest first quarter since 2009.

REUTERS