Euronext controls expenses to post Q1 profit beat

15 May, 2016

Pan-European exchange Euronext posted better-than-expected profit and revenue for the first quarter, as it exercised tighter control over expenses. The company reported a nearly 8 percent rise in first-quarter operating profit on Thursday despite a fall in revenue, as its expenses on salaries and employee benefits fell about 18 percent.
Cost-cutting efforts in 2015 helped the company cut its quarterly expenses by 12.1 percent, excluding depreciation and amortization, to 54.7 million euros, Euronext said in a statement. Euronext, which operates bourses in Paris, Amsterdam, Brussels, London and Lisbon, posted a quarterly EBITDA margin of 56.8 percent, up from the 52.2 percent it reported a year ago.
The bourse operator has been vocal in warning its investors over falling listings and reduced trading activity and has turned to making itself a leaner company to compensate. The company said operating profit before exceptional items rose to 68.1 million euros (53.83 million pounds) in the quarter ended March 31, from 63.3 million euros a year earlier. The company reported a diluted earnings per share of 0.69 euros for the quarter.
Third party revenue fell 2.7 percent to 126.5 million euros in the quarter following a drop in trading activity and listings.

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