A strong showing in software sales and derivatives trading failed to halt a 5.1% year-on-year slide in Euronext second quarter revenues caused by slumping worldwide financial markets.
Revenues for the second quarter of 2004 reached €225.9m, compared to the €238m achieved during the same period in 2003 as cash market trading activity fell by 14.5%. The effects of cheaper tarrifs further eroded revenues (down 26.2% in total), as Euronext responded to increased competition by lopping 13.7% off the average fee per trade.
The exchange took solace from a strong performance by GL Trade, which reported 19.7% growth in quarterly revenues to €37m, and by the contribution from Euronext.liffe Market Solutions (€9.8m in Q2, 2004).
Derivatives trading also turned in a stellar performance as revenues increased from €79.1m in Q2, 2003 to €83.1m this quarter. Equity derivatives products have been progressing strongly (+26.1% in Q2, 2004 compared to Q2,2003) and faster than the short term interest rate products (+7.8%), leading to a lower average fee per contract.