Huw Jones

LONDON (Reuters – Euronext is achieving savings quicker than anticipated for potential acquisitions. But, Stephane Boujnah the CEO of pan-European exchange Stephane Boujnah stated on Thursday that no target “actionable”.

Euronext purchased the Milan exchange last January, making it Europe’s largest stock trading platform, Boujnah explained.

Faster-than-anticipated savings and a billion euros in surplus cash means the exchange has more flexibility when it comes to mergers and acquisitions, he added.

Boujnah said to Reuters, “We do not at the moment have an identifiable, actionable target.”

Boujnah said that Euroclear (the pan-European settlement company in which Euronext holds a stake) was not an appropriate target for an actionable takeover.

He stated that the top priorities now include promoting new technology listing segments and increasing exchange presence in sustainability, governance, or environment, as well as enhancing its social, governance, or governance (ESG), areas.

Euronext posted fourth quarter 2021 revenues and income of 372 million euros. This was an increase of 59.5% due to the Borsa acquisition. Comparable to 98.6m euros during the same quarter in 2020, operating profit rose 150.6m euros to 150.6m euros.

Euronext stated that the 2022 operating costs will average 622 millions euros. This compares to an annualized fourth quarter 2021 cost of 627million euros.

Borsa Italiana savings and other factors accounted for 10 million Euros in annualized savings last year. This was out of a goal of 100 millions by the end of 2024. It helped to reduce Euronext’s net debt.

Euronext did not estimate 2022 savings.

Boujnah said that Milan would not be subject to mandatory layoffs, but any staff reductions will only occur on an individual basis. He also stated that Italy is likely to see more of its resources in the future.

For 2021, the exchange will pay a dividend of 1.93 Euros per share.

Euronext stated that the move of the main server of the company from Basildon in England to Bergamo, Italy was within reach.

Boujnah reported that large and medium customers as well as most smaller ones have all signed on to the new server.