• Full-Year Revenue Growth: 10.3% increase to EUR1,626.9 million.
• Adjusted EBITDA: Exceeded EUR1 billion, with a 16.4% growth compared to 2023.
• Adjusted EBITDA Margin: Increased by 3.3 points to 61.9%.
• Adjusted Net Income: Increased by 19.7% to EUR682.5 million.
• Adjusted EPS: Grew close to 20% year on year to EUR6.59 per share.
• Proposed Dividend: EUR292.8 million, representing a 14% increase year on year.
• Q4 Revenue Growth: 11.1% increase to EUR415.8 million.
• Q4 Adjusted EBITDA: Grew by 16.7% to EUR252.6 million.
• Q4 Adjusted EBITDA Margin: Increased by 2.9 points to 60.7%.
• Q4 Adjusted EPS: Increased by 16.9% to EUR1.66 per share.
• Net Debt to Adjusted EBITDA Ratio: 1.4 times at the end of 2024.
• Listing Revenue: EUR231.9 million for the year, with a 5.1% growth.
• Trading Revenue: Grew by 14.2% for the year.
• Clearing Revenue: Increased by 19% to EUR144.3 million for the year.
• Net Treasury Income: Grew by 21.8% to EUR56.8 million for the year.
• Underlying Expenses: EUR620.5 million, in line with revised guidelines.
• Cash Flow from Operations: EUR175 million in Q4 2024.

• Warning! GuruFocus has detected 11 Warning Signs with EUXTF.

Release Date: February 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Euronext NV (EUXTF) delivered double-digit topline growth in Q4 and for the full year 2024, driven by business model diversification and clearing house expansion.
• The company exceeded EUR1 billion in adjusted EBITDA for the first time, showcasing operational excellence and cost discipline.
• Full-year 2024 adjusted EPS grew by nearly 20% year-on-year, reaching EUR6.59 per share.
• Euronext NV (EUXTF) announced the acquisition of Nasdaq's Nordic Power Future business, expected to enhance its market position in the Nordic and Baltic regions.
• The company launched innovative financial derivatives, including cash-settled Mini Futures on European government bonds, set to be available for trading in September 2025.

Negative Points

• 2025 is projected to be an investment year, with increased costs expected to support strategic growth projects.
• The company faces currency headwinds, particularly from the depreciation of the Norwegian kroner, impacting listing revenue growth.
• Despite strong overall performance, the clearing revenue showed relative weakness compared to trading volumes in Q4.
• There is uncertainty regarding the cost implications of transitioning to a T+1 settlement cycle by 2027, as indicated by the European Commission.
• The integration of Nasdaq's Nordic Power Future business may involve additional costs, although these are expected to be minimal.

Q & A Highlights

Q: On costs, you're guiding for an additional 5% cost growth this year. Is this expected to be repeated in 2026, or is it a one-off investment for this period? A: The 5% cost increase is recurring as we are building new teams and technology to support Euronext's expansion and deliver our 2027 ambitions. The goal is to maximize EBITDA growth by 2027. The investment focus is on systems, communication, professional services, and hiring new teams.

Q: Can you provide more color on the partnership with Euroclear and its expected impact on the business? A: The partnership with Euroclear Bank is to enhance our collateral management capabilities in Euronext clearing. It is non-exclusive and aims to optimize how clearing members deposit margins, allowing for non-euro collateral acceptance. This is expected to support our repo clearing activity across Europe.

Q: Regarding the investment expenditure of EUR30 million, how much of that is being deployed in 2025, and how might the cost base flex with incremental revenue? A: The plan is to ramp up as much as possible in 2025 to deliver the run rate for 2027. The investment portion is largely fixed, and the objective is to maximize revenue and minimize costs by 2027.

Q: Could you provide an update on the integration of Nasdaq Nordic and its expected impact on your business? A: We are acquiring the open interest of power derivatives from Nasdaq, which will be traded in Amsterdam and cleared in Rome. This acquisition accelerates our strategic initiative to launch a power derivatives business in Europe, providing a competitive alternative to the incumbent provider.

Q: On the T+1 settlement discussion, do you expect this to trigger any unplanned upfront investments, and which P&L line items might be impacted? A: We welcome the migration to T+1 settlement by 2027. Euronext is ready for this migration, and we do not expect any additional costs or P&L impact from this transition.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.