Euronext Announce $323 Million Share Buyback Programme

In line with this new capital allocation policy with a focus on shareholders’ returns and strategic flexibility, Euronext, the leading European capital market infrastructure, on Thursday said that it will launch a $323.27 million maximum share repurchase programme on 11 November 2024.

Releasing its new three-year strategic plan “Innovate for Growth 2027,” Euronext said that the plan sets out the Group’s ambition to leverage Euronext’s presence on the entire capital markets value chain in Europe to accelerate growth through innovation and efficiency.

Euronext CEO and Chairman Stéphane Boujnah said that the present Euronext was fundamentally different from Euronext in 2020. And, for the past four years, Euronext has profoundly transformed capital markets in Europe.

“We have achieved our ‘Growth for Impact 2024’ targets a full quarter in advance, thanks to strong integration capabilities, solid organic growth and continuous cost discipline. Euronext now covers the entire capital markets value chain in Europe, with a global outreach,” he said.

“We are fully equipped to take advantage of tailwinds and capture opportunities on both volume and non-volume businesses,” he said and added that Innovate for Growth 2027 frames Euronext’s potential for the acceleration of the Group’s growth.

Three Priorities

Euronext’s strategy relies on three priorities: (i) accelerate growth in non-volume business, (ii) expand the FICC1 trading and clearing franchise and (iii) build upon our leadership in trading. Our strategy will provide a stronger value proposition for investors, issuers and market participants globally.

“ESG will continue to be embedded in all our businesses, and we will scale up our ESG ambition, with a Net Zero commitment to be set by 2027. We have consolidated and offered best-in-class technology across European capital markets. Now, we will enhance our operational excellence and innovation capabilities through AI,” he said.

This plan is an inflection point for Euronext towards faster organic growth. Its financial guidance reflects Group’s ambition to accelerate its growth and invest to seize future opportunities. Euronext’s organic revenue growth is expected to be above 5% on average per year between 2023 and 2027. Adjusted EBITDA growth is expected to be above 5% on average per year between 2023 and 2027.

“The Group will continue to execute external growth opportunities, in line with its investment criteria of ROCE above WACC in years 3 to 5. We are announcing today an updated capital allocation policy with attractive returns for shareholders and strategic flexibility,” he said.

“By 2027, Euronext will be larger, stronger and more diversified. Our leadership will be extended to new activities and asset classes in Europe. The Group will be positioned as the unique and most efficient gateway to European capital markets for listing, trading, clearing, settlement and custody. By 2027, Euronext will be the undisputed backbone of the European Savings and Investments Union,” he added.