Euronext announced its results for the full year of 2014. Third party annual revenue increased by 9% on an adjusted basis to €458.5 million (FY 2013 adjusted: €420.5m) or +18.6% on a reported basis.
Article continues below
eak]
That was driven by sustained listing activity and strong revenues from cash trading and from market data businesses throughout the year. This revenue includes €36 million from the derivatives clearing contract with LCH.Clearnet which came into force on April 1, 2014 (adjusted clearing revenue for 2013: €33.8 million).
Operational expenses excluding Depreciation & Amortization decreased by 11.4% on an adjusted basis to €267.1 million (2013 adjusted: €301.6 million) and by -5.2% on a reported basis (2013 reported: €281.8 million), thanks to very strong cost discipline.
These expenses include € 20.3 million of costs related to the contract with LCH.Clearnet above mentioned (2013: €19.8 million if this contract had been in place at that time).
As a result of this strong activity combined with a reduced cost base, the EBITDA margin increased strongly in 2014 to 45.8% compared to 41.5% in 2013 adjusted and reported. In 2013 this number included €95 million of ICE transitional revenue and other income while these revenues were limited to €34 million this year.
These 2014 revenues reflect primarily the IT support services provided to Liffe for €22.5 million for the operation of its derivatives exchanges in the UK and in the US. The impact of the Cannon Bridge House sublease rent in London was €8.5 million in 2014.
These transitional revenues are not expected to be recurring beyond the fiscal year 2014.
Depreciation and Amortization decreased by € 3.3 million, from € 19.9 million in 2013 to €16.6 million this year. As already explained during the year, this is due to the end of the amortization of the historic Euronext UTP value in April 2014.
Full year 2014 operating profit before exceptional items was €208.8 million, a 7.6% increase compared to last year on an adjusted basis.
€44.6 million of exceptional costs were booked in 2014, with new decisions in Q4 2014: decisions were made during the last quarter of the year to exit the disaster recovery site of the Cannon Bridge House building in London at the end of 2015 and to relocate the Paris head office to La Defense. Exceptional costs also include restructuring costs linked to the separation programme.
The result from equity investment of €4.6 million for 2014 relates to company's direct and indirect stakes in Euroclear. It should be compared to a loss of €18 million in 2013 due to an impairment of Sicovam holding, partially offset by a gain on partial disposal of the LCH.Clearnet stake. ■