EURONEXT_Registration_Document_2017
5
OPERATING AND FINANCIAL REVIEW
Overview
EURONEXT 2016 REVENUE BY GEOGRAPHY
Settlement & Custody Revenue from Interbolsa in Portugal was €19.6 million in 2016; in line with the €19.7 million achieved in 2015. Market Solutions & Other Revenue from market solutions decreased by -3.3% in 2016, to €33.0million (2015: €34.1million). The decrease in software solution revenue during the transition to Optiq® platformwas partially offset by the introduction of a new Market Abuse regulation compliance service in July 2016.
Belgium 6.0%
0.1%
Portugal 6.9%
United Kingdom
27.6% The Netherlands
59.4%
France
Operating Expenses
YEAR ENDED
31 DECEMBER 2016
31 DECEMBER 2015
In thousands of euros
Salaries and employee benefits
(99,776)
(112,218)
Depreciation and amortisation
(15,088)
(17,071)
Other operational expenses
(112,766)
(122,487)
TOTAL OPERATING EXPENSES
(227,630)
(251,776)
Euronext’s restructuring activities, and to a decrease in share based payment expenses related to an unconditional grant of 63,609 RSU’s, resulting in immediate vesting and recognition of the related expenses in the comparative period. Depreciation and Amortisation Depreciation and Amortisation decreased by €-2.0 million, or -12%, to €15.1 million in 2016, compared to €17.1 million in 2015. This decrease is mainly related to the end of the accelerated depreciation of assets in conjunction with the Company’s relocations in Paris and Brussels in 2015.
Euronext operating expenses in 2016 were €227.6 million, compared to €251.8 million in 2015, a decrease of €-24.2 million or -9.6%. The overall cost decrease in 2016 was due to strong cost discipline following Euronext’s cost reduction program and also included €3.3 million from releases of accruals. Euronext operating expenses comprise salaries and employee benefits, depreciation and amortisation, and other operational expenses. Salaries and Employee Benefits Salaries and Employee Benefits decreased by €-12.4 million, or -11%, to €99.8 million in 2016, compared to €112.2 million in2015. This decrease is attributable to the reduction in headcount following
Other Operational Expenses
2016
2015
In thousands of euros
Systems and communications
(17,099)
(18,582)
Professional services
(38,382)
(39,599)
Clearing expenses
(26,311)
(27,757)
Accommodation
(10,237)
(13,622)
Other expenses
(20,737)
(22,927)
TOTAL
(112,766)
(122,487)
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www.euronext.com
2017 REGISTRATION DOCUMENT
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