Euronext today released its new three-year strategic plan, “Growth for Impact 2024”. It sets out the Group’s ambition to build the leading market infrastructure in Europe. The Group aims to make an impact on its industry and its ecosystem to shape capital markets for future generations.
The “Growth for Impact 2024” strategic plan translates into the following 2024 financial targets:
- Revenue growth: +3% to +4% CAGR (compared to +2% to +3% CAGR in the previous plan);
- EBITDA growth: +5% to +6% CAGR;
- CAPEX (unchanged): between 3% to 5% of total revenue;
- Dividend policy (unchanged): pay-out at 50% of reported net income for the period;
- Targeted 2024 pre-tax run-rate synergies for the Borsa Italiana Group acquisition are increased by 67%, to €100 million, mainly thanks to the European expansion of CC&G clearing activities and the migration of Euronext’s Core Data Centre. More than 55% of the synergies are related to growth projects. Total implementation costs are estimated at €160 million.
The “Growth for Impact 2024” strategic plan envisages the following strategic priorities:
- Leverage Euronext’s integrated value chain, through the European expansion of CC&G clearing activities, the Core Data Centre migration to the European Union, and the international expansion of MTS;
- Pan-Europeanise Euronext CSDs through the expansion of services across its four CSDs in Portugal, Norway, Denmark and Italy, the harmonisation of processes and enhancement of the client experience;
- Build upon Euronext’s leadership in Europe, to further develop its leading listing and trading venues, to accelerate the delivery of innovative products and services thanks to technology, and to scale up advanced data services, corporate and investor services;
- Empower sustainable finance through an ambitious climate commitment for Euronext that aims to make a tangible impact on its partners and clients, with the launch of the Fit for 1.5° climate commitment, and also through an enhanced inclusive people strategy; and
- Execute value-creative M&A by continuing to seek external diversification opportunities, in line with Euronext’s strict investment criteria and its commitment to maintain an investment grade rating.
Stéphane Boujnah, CEO and Chairman of the Managing Board of Euronext said:
“Today, we are determined to leverage Euronext’s integrated value chain, by seizing the opportunities linked to the Borsa Italiana Group’s integration, notably through the European expansion of CC&G clearing activities and the migration of our Core Data Centre to Italy. Those growth projects allow us to materially increase the synergies related to the acquisition of the Borsa Italiana Group. The integration of the Borsa Italiana Group teams within Euronext is going very well. Thanks to our shared vision and complementary activities, we have already delivered a fully coordinated organisation”.