Derivatives keep Euronext on target

A 4% rise in derivatives trading activity helped pan-European exchange Euronext meet analyst expectations in its first set of results following an initial public offering earlier this year.

Euronext, created through the combination of the Paris, Brussels and Amsterdam bourses, saw net profts rise 6.3% to Eur109.4 million based on relatively flat sales of Eur354.4 million.

With revenues down in the exchange's core cash markets and clearing businesses, due to the slowdown in the world economy, the 4% rise in derivatives revenues to Eur44.1 million helped push the exchange's results to the top end of analyst expectations. Euronext officials said that options volumes were up sharply – 28.9% to 149 million contracts – as participants took advantage of higher market volatility.

"In a difficult market environment we have demonstrated the resilience and financial strength of our business, and achieved further milestones in our integration," said Euronext chief executive Jean-Francois Theodore. "Given the state of the world financial markets and the traditionally slower summer months, we expect revenues in the second half to be slightly lower than in the first half."

The company also saw sales of financial information and logistics rise 10% to 75.8 million. Shares in Euronext are in the Eur19-Eur20 range, well below their listing price of Eur24. This is in part due to confusion on whether Euronext is an exchange, technology firm or services company.