Euronext full year net profit jumps 50.8%
<ul><li>Revenues: EUR1,102.2m up 14.6%<li>Costs: up 7.7%, including corporate deals costs (EUR47.6m)<li>EBITA: EUR409.0m up 28.4%, margin of 37.1%<li>Net Profit: EUR361.8m up 50.8%<li>Increase of the diluted EPS by 49.4%, at EUR3.23<li>The tender offer has been opened from 15 February until 21 March</ul>
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Euronext NV announced today its results for the full year 2006. They are the strongest ever. As already reported, the Euronext revenues reached an all-time record of €1,102m, an increase of 14.6% compared to last year. The increase is mainly explained by the ongoing positive market conditions for nearly every business unit.
Operating expenses grew by 7.7% during the period mainly due to the advisory costs linked to the corporate deals, which totalled €47.6m since the beginning of the year. As a result, the profit from operations ("EBITA") reached €409.0m, i.e. an increase of 28.4% compared to the previous record level in 2005 and the EBITA margin stood at 37.1%, a substantial improvement compared to 33.1% in 2005 on a restated basis(1). Excluding above advisory costs, EBITA and EBITA margin would have respectively amounted to €456.6m and 41.4%.
The net financing income remained stable year on year at €11.5m despite €445m paid in dividend and repayment of capital in the middle of last year. As reported earlier in 2006, a capital gain of €15.5m was booked in relation to the sale of CIK to Euroclear as of 1 January 2006. Finally, the income from associates was multiplied by 2.9 between 2005 and 2006, driven by the performance of LCH.Clearnet (€36.9m) and AEMS (€15.4m).
During the period, the profit before tax amounted to €489.6m, up 37.0% year-on-year and the net profit jumped by 50.8% (compared to its restated level in 2005) from €240m to €361.8m. On a per share basis, the diluted earnings stood at €3.23, +49.4% compared to diluted EPS at the end of 2005.
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