Pan European bourse operator Euronext raised its 2005 guidance for the second time this year as it reported surging third-quarter profits, driven by buoyant sales growth, lower expenses and a capital gain.
The operator of the Paris, Amsterdam, Brussels and Lisbon bourses and London's Euronext.Liffe derivatives exchange said in a statement on November 24 that third-quarter net profit more than trebled to 71.2 million euros ($83.78 million).
Earnings before interest, tax and amortisation (EBITA) for the quarter ended September 30 rose to 85.6 million euros from 47.7 million in the year-ago period, helped by an already reported 14-percent pro forma rise in quarterly sales and a 9.4-percent dip in the group's costs and expenses.
"Given the strong activity observed by mid November, especially the rebound in the cash trading business and a strong year in listing, and, in anticipation of sustained activity until the end of the year, Euronext upgrades its 2005 EBITA target, once again, by 25 million euros," Euronext said.
Euronext now expects full-year operating income of 300 million euros. The group, which is angling for control of London Stock Exchange, had already raised its initial forecast of 250 million euros to 275 million euros in August.
The average outcome of a Reuters poll of eight analysts had showed July-September operating profit of 73.4 million euros and net income of 51.4 million euros.
Euronext said the contribution of its Liffe Markets Solutions to its joint-venture Atos Euronext Markets Solutions (AEMS) - formed in July 2005 - resulted in a capital gain of 5 million euros.
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