(Reuters) – Pan-European exchange Euronext (ENX.PA) reported a nearly 8 percent rise in first-quarter operating profit on Thursday despite a fall in revenue, as the company controlled its expenses.
Cost-cutting efforts in 2015 helped the company cut its quarterly expenses by 12.1 percent, excluding depreciation and amortisation, to 54.7 million euros, Euronext said in a statement.
Euronext, which operates bourses in Paris, Amsterdam, Brussels, London and Lisbon, posted a quarterly EBITDA margin of 56.8 percent, up from the 52.2 percent it reported a year ago.
The bourse operator has been vocal in warning its investors over falling listings and reduced trading activity and has turned to making itself a leaner company to compensate.
The company earlier reported no new listings in February due to highly volatile market conditions, compared with nine new listings in the period last year, that raised more than 2 billion euros.
Global markets have been erratic recently amid worries about China’s economy and falling oil and commodity prices.
Euronext said in April that current market conditions significantly slowed worldwide IPO activity during the first quarter of the year, which was the weakest first quarter since 2009.
Euronext’s employee count fell by 14 percent in 2015, according to the company’s annual report. For the coming year, the company is pursuing a simplification of its information technology systems, among other plans, to save costs.
In a bid to stay competitive, Euronext has been expanding its presence in agricultural commodities. The company made headway in signing wheat futures contracts in the Black Sea market and will launch nitrogen fertiliser futures for the European market this autumn.
Sources have told Reuters that the exchange operator could consider snapping up assets shed by Deutsche Boerse AG (DB1Gn.DE) and London Stock Exchange Group Plc (LSE.L) to satisfy antitrust authorities over their $ 30 billion merger deal.
Euronext will be reduced to minnow status among European bourses if the LSE-Deutsche Boerse deal goes ahead.
On Thursday, the company said it would release its “new strategic plan” at an investor meeting on May 13.
The company said operating profit before exceptional items rose to 68.1 million euros (53.83 million pounds) in the quarter ended March 31, from 63.3 million euros a year earlier.
Third party revenue fell 2.7 percent to 126.5 million euros in the quarter following a drop in trading activity and listings.
Euronext’s listing revenue fell 7.2 percent to 14.2 million euros in the quarter.
(Reporting by Noor Zainab Hussain and Vidya L Nathan in Bengaluru; Editing by Sunil Nair)
