The pan-European market infrastructure Euronext has released its financial metrics for the first quarter of 2023.
According to the results, forex trading revenue in the first three months of the year fell 11.7% to €6.3 million from the €7.2 recorded in the first quarter of last year.
In addition, there was a 6% fall when compared to the previous quarter of 2022. This decline is attributed to a 13% decrease in spot FX volume reported by Euronext FX, the group’s electronic communication network for forex trading. The total volume declined to $1.4 trillion, and the average daily volume fell by 14.4% to $21 billion.
Euronext’s trading revenue was also down by 14.5% YoY at €128.9 million, compared to the same period during the previous year.
Cash trading declined by 23.7% to €71.7 million, as well as derivatives trading by 7.4% to €14.9 million. However, fixed income strengthened by 7% to €26.2 million and power trading by 8.4% to €9.8 million.
The company’s consolidated revenue and income came in at €372.3 million, down 5.9% compared to Q1 2022. The decline was attributed to “the strong comparison base for equity-related trading and FX rate variation effects, partially offset by the robust performance of non-volume related activities and better performance of fixed income and power trading activities.”
In the first quarter of 2023, non-volume related revenue comprised 58% of the underlying Group revenue, an increase from 55% in the same period of 2022. This change reflects the expansion into non-volume related activities and the trading activity experienced in Q1 2022 due to volatility spikes, the exchange operator explained. The ratio of underlying operating expenses (excluding depreciation and amortization) to non-volume related revenue was 141% in Q1 2023, down from 151% in Q1 2022.
Stéphane Boujnah, Chief Executive Officer and Chairman of the Managing Board of Euronext, said:
Stéphane Boujnah
This first quarter of 2023 demonstrated the robustness of Euronext’s diversified business. We recorded a solid performance in the first quarter of 2023 despite a first quarter of 2022 that was marked by unprecedented volatility on volumes due to geopolitical events resulting in a strong comparison basis.
We continued to operate in accordance with our cost discipline, in line with our 2023 cost guidance. Overall, this translated into the second highest adjusted net income ever, at €147.1 million.
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