By Huw Jones
LONDON (Reuters) -Pan-European stock and derivatives exchange Euronext on Thursday said it would launch a 200 million euro ($219.88 million) share buyback that would not crimp its ability to make acquisitions if need be.
Euronext, which operates bourses across the continent including in Paris, Amsterdam and Dublin, said its adjusted earnings per share were flat in the quarter at 1.34 euro.
The programme to buy back about 3% of its ordinary shares over the 12 months from July 31.
“We believe that a capital allocation programme in the form of a share repurchase programme of this size does not create any particular tension neither on the rating, nor on the deleveraging, or even the possibility to explore other acquisitions,” Euronext CEO Stephane Boujnah told reporters.
The company would maintain its dividend policy of 50% of reported net income.
Revenue eased 1.8% to 368.1 million euros as trading in shares and derivatives slowed 13.3% and 12.6% respectively on the same quarter in 2022, when trading was heavier following Russia’s invasion of Ukraine.
However, its data services unit delivered “record revenue” of 56.9 million euros, up 9.4% on last year, the company said, citing factors including a growing client base and strong performance of its data solutions business.
“Euronext reported a solid performance for the second quarter of 2023, demonstrating the success and the resilience of our business model as a consequence of our diversification strategy, despite a low-volume environment,” the company said in a statement.
It added that savings from the integration of the Milan Exchange were on target, putting the exchange “well on track” to deliver 115 million euros ($126.39 million) in cumulated savings by the end of 2024.
Adjusted operating profit eased 4.4% to 197.8 million euros from the second quarter of 2022, though net income rose 0.9% to 120 million euros.
More than half of new European listings and the largest initial public offering in Europe took place on Euronext in the second quarter, but revenue from listings little changed at 55.1 million euros, the company said.
($1 = 0.9093 euros)
(Reporting by Huw Jones; Editing by Emma Rumney and David Evans)
