Euronext First Quarter 2004 Results: A Continued Strong Improvement In Profitability

Strong revenue growth: up 10.5% to €236.7m (compared to pro forma 2003)
Ongoing EBITA improvement: up 23%, to achieve an EBITA margin of 35 %
Increase in Profit before tax: up 26.3%
Increase in Net Profit: up 26 %
Dividend increase of 11 % on 2002
Commitment to strong share buy-back programme

Euronext NV reports its results for the first quarter of 2004. Compared to the same period in 2003, Euronext NV again delivered a 23% increase in its EBITA, to achieve total EBITA of € 82.4m.

All business lines, except for cash trading and information services, have delivered strong revenue growth (+10.5%), with revenue totalling €236.7 million. The derivatives business continued to deliver strong volume growth not only in STIR products but also in equity options, generating revenue growth of 17 %; the listing business benefited from a revival in the IPO market and registered a 42.8 % increase in revenues. This growth enabled Euronext NV again to deliver strong operating performance with an EBITA margin of 34.8 %, up 23 % year-on-year. EBITA totalled €82.4 million. The EBITA margin has been improved by 11.2 % on the 31.3 % EBITA margin achieved in Q1 2003.

The increase in costs of 4.9% year-on-year is largely due to GL Trade’s expansion through growth in the UK, Asia (Misys) and Italy (Glesia).

First quarter net profit was up 26%, from €33.5m in 2003 to €42.2m in 2004, driving the diluted EPS up to €0.35 this quarter (against €0.27 for the same quarter in 2003).

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