Euronext Nv Unsp/Adr

Hello and welcome to the Euronext second quarter 2026 results conference call. On today's call, we have Stéphane Boujnah, CEO and Chairman of the Managing Board, and Giorgio Modica, CFO. Please note this conference is being recorded and for the duration of the call, your lines will be on listen only. However, you will have the opportunity to ask questions at the end of the call. This can be done by pressing pound key five on your telephone keypad to enter the queue. I will now hand you over to your host, Stéphane Boujnah, to begin today's conference. Please go ahead, sir.

Good morning, everybody, and thank you for joining us for Euronext's second quarter 2026 results call. I am Stéphane Boujnah, CEO and chairman of the managing board of Euronext. And I will start with the highlights of this record quarter. Then Giorgio Modica, the Euronext Group CFO, will cover the main business and financial highlights of the second quarter of the year. I'm now on slide four and I will start with the overview of the second quarter 2026 highlights. As we have done for over two years now, Euronext extended the double digit growth trajectory. We delivered double-digit growth across revenue, double-digit growth in EBITDA, double-digit growth in net income, and double-digit growth in EPS. This is our ninth quarter of double-digit growth. The excellent performance translated into record underlying revenue and income of $544.4 million, up almost 17%, up 16.9% year-on-year. This compares to what was already a very strong quarter last year. This growth was driven by all segments and was evidenced by clear operating leverage. Or adjusted EBITDA increased faster than revenue and reached a record level of €360 million, up 21% plus 1% compared to last year, which was already a strong quarter. As a result, Euronext adjusted the bid-to-margin reach 66.1% and this represents a plus 2.3 percentage point improvement compared to the second quarter of 2025 despite continued investments in growth and in making the company fit for the future. Adjusted net income increased by 19.9% to 245 million euro. Adjusted earnings per share rose by plus 19.8% to 2.42 euros, highlighting our consistent value creation for shareholders. This remarkable performance demonstrates once again the resilience of our diversified business and the growing revenue contribution of our strategic initiatives. Euronext has never been so strong. Non-volume-related revenues accounted for 58% of total revenue and income and increased by plus 15.2% year-on-year. So non-volume-related revenue did contribute a lot to this double-digit growth because they did grow by double-digit by plus 15.2%. This robust performance was driven by the contributions of Admin Control and Euronext Athens, alongside commercial expansion and sustainable growth in custody and settlement. But it was also driven by the strong results of a renewed momentum in primary markets and also in advanced data solutions. Volume-related revenue increased by plus 19.2%, driven by record volumes across asset classes. Resilient revenue capture and market share improvement and the full results, the full first quarter of the contribution of our strategic initiatives in Power Futures. We consistently diversify our volume-related revenue by adding new products and expanding into new geographies. Our underlying expenses, excluding DNA, amounted to $184.4 million. representing an increase of 9.5% compared to last year. This increase reflects our investments in innovation and talents to support long-term growth and to build the company fit for the future, as well as the impact of the acquisitions of Euronext Athens and Alien Control. But please, I want to highlight that excluding the impact from acquisitions, from the change of perimeter, or underlying cost base grew only by plus 3.5%. So operating leverage, cost management discipline has remained a fundamental feature of the organization, even in the context of this double digit growth of Topline. Net debt to last 12 months adjusted EBITDA stood at 1.3 times at the end of June 2026. Normalized for cash in transit at Norpool, our leverage was right in the middle of our target range of 1 to 2 times. This performance was achieved despite significant cash outflows of over 700 million related to the dividend payment and the redemption of our 2026 bonds. So the cash flow generation and the balance sheet management has remained, again, in Q2, a significant continuous feature of the company. Turning to slide five, I want to take a few minutes to demonstrate that Euronext is today stronger than ever. In Q2 2026, we further reinforced our leadership in European capital markets. We recorded the best second quarter for listing and follow-ons in three years, powered by a simpler and faster listing process. Nearly half of Euronext's new listings were international listings from companies not headquartered in Euronext countries, notably from Canada, Australia, Spain, and the Czech Republic. We were pleased to welcome Seb Balker, the first listing of a global shipping company on Euronext Athens and the largest capital raise also in Greece in over a decade. These developments illustrate the continued momentum in the Greek market, As we progress with the integration, the continuous rally towards Greek assets, the continuous success of the Greek economy, and therefore the continuous opportunity for making Athens a listing venue for the shipping sector. But beyond Athens, overall in listing, it's quite clear that Gioronext has become the IPO market and the IPO magnet for international companies. The execution of our strategic plans also delivered tangible results. Q2 2026 marks the first full quarter contribution of Power Futures. Thanks to our integrated value chain, we are able to capture the benefits of this new asset class across trading, clearing, data and technology. And this success in the Nordic and Baltic region is going to continue to be deployed above and beyond this region. Euronext has recorded growing retail investor participation since the start of the year. The number of non-professional users for OData products has more than doubled year on year, reaching close to 9 million users. The retail participation in ETFs increased by 87% over the same period. We are confident that supportive national initiatives will further reinforce this upward trend for more consistent retail participation in tour markets. The European Commission's market integration and supervision package marks a real step forward to reduce fragmentation and to improve scalability for EU market infrastructures. Over the past few weeks, the six finance ministers of Europe's largest economies in Germany, France, Italy, Spain, Poland, and the Netherlands, and also the European Parliament rapporteur, Mr. Markus Weber, have explicitly called for central supervisions and wide-ranging changes to market structure. A growing number of EU countries are implementing initiatives to increase retail participation to the elite market, in particular through pension reform reforms. These developments are encouraging and are closely aligned with the Euronext long-standing vision. As you can understand, Hacking significantly ahead of the Innovate for Growth 2027 financial targets, we are progressing. We are also nearing the completion of all the industrial projects of Innovate for Growth 2027. We have successfully started the client onboarding to our renewed fixed income clearing franchise in May 2026. In June 2026, we announced a partnership with BNY to further enhance the collateral management capabilities of Euronext Clearing. Over the second half of the year, we will accelerate client onboarding, building an updated risk framework and our new sponsored access model for buy-side clients. As the September 2026 go-live of our CSD expansion approaches, The first clients have confirmed that they will use the model from day one. These early adopters laid the foundation for broad-based market adoption. Preparations for the first issuer migration are also progressing well, and market participants clearly recognize the value of a competitive post-trade model. At the end of June 2026, Our cash position exceeded €1 billion and our leverage stood at 1.3 times that debt to EBITDA. These financial trends provide us with significant strategy flexibility for the coming quarters. So we deliver once again, device diversified growth, once again, discipline cost management, once again, solid execution of our organic growth initiatives, and once again, ambitious plan to make the company fit for the future. I will now hand over to Giorgio for the business and financial review of Q2 2026.

Thank you Stéphane and good morning everyone. Let's now focus on the driver of performance for this quarter. I am now on slide 7. This quarter we deliver record results with double digit growth across all five of our revenue and income lines. This performance reflects the strength of our diversified business model Discipline execution and the contribution of Euronext Athens. Total revenue and income in the second quarter of 2026 reached 544.4 million euros, up 16.9% compared to last year. 58% of revenue and income was non-volume related. This part of our revenue covered 170% of underlying operating expenses, excluding DNA. Let's take a closer look at the key drivers behind this contribution and continued growth trajectory beginning with non-volume related revenue and income on slide 8. Non-volume related businesses grew 15.2% compared to last year. Security services revenue reached 96.9 million euros this quarter, a solid 12.5% increase The increase was also supported by the steady Settlement Activity, growing demand for added value services and Euronext Athens. Other post-trade revenue increased by 1.7% compared to Q2 2025 to €8.8 million, explained by higher guaranteed deposit and the contribution from Power Futures. Net treasury income was up 12.5% compared to the second quarter 2025 at 22.5 million euros. The increase is driven by a combination of higher cash deposit linked to the power, future clearing, higher volatility and average spread. Turning to capital markets and data solution, I am now on slide eight. Nine. Revenue reached 193.8 million euros, marking a 17.2% increase compared to the second quarter of 2025. Primary market generated 54.2 million of revenue, up 16.4% compared to the second quarter of 2025. This renewed momentum was driven by the strongest admission activity and follow-on transactions since 2023, Despite a volatile market environment, the performance was also supported by the contribution of Euronext Athens with the first listing of a global shipping company and the largest full-on capital raise in more than a decade. Advanced data solution revenue grew to €72.3 billion, up 11% compared to the second quarter of 2025. This performance reflects record Retail Demand, the strong growth of the index franchise and the continued commercialization of new data products. Corporate and investor solution and technology services reported 67.3 million euros of underlying revenue in the second quarter of 2026, up 25.4%. This performance is driven by the growth in SaaS activity, record revenue in investor solution, and a steady upward trend in colocation services. Finally, in the second quarter of 2026, it was the last period impacted by the recognition of admin control contract liability under IFRS 3. This resulted in a 0.9 million reduction in reported revenue for the quarter with no impact, I want to remind you, no impact on cash flows. For reference, this adjustment amounted to 0.6 million per month and was applied until mid-May 2026, which marked 12 months since the closing of the admin control acquisition. Moving to slide 10, our volume-related revenue saw an increase of 19.2% compared to last year. Revenue from fixed markets reached 98.4 million euros, delivering a 12.3% increase compared to the second quarter of 2025. Fixed income trading and clearing revenue grew by 8.2% to 55.9 million euros. This reflects strong growth in MTS cash volume, reaching a record quarter at 64.9 billion euros in average daily volume. The performance was also supported by the continued internalization of MTS model and to the performance in the dealer to client space. Commodity trading and clearing revenue increased by 27.2% to 34 million euros in the second quarter of 2026. This performance was supported by the first full quarter contribution from Euronext Norpool Power Future and continuous structural growth in the intraday power trading. FX trading revenue reached 8.5 million euros down 7.9% compared to the same quarter last year. This performance reflects normalization in volatility and the impact from the US dollar depreciation on reported figures. Like for like and at current currencies, revenue decreased by 5.6%. Continuing with the review of our volume-related revenue, I'm now on slide 11. Equity market revenue increased by 24.9%. Giorgio Modica, Yianos Kontopoulos, Øivind Amundsen, Fabrizio Testa, Manuel Bento, Rene van Vlerken, Stéphane Boujnah, Benoit Van den Hove, Daryl Byrne reflecting a 22.7% increase year on year on a pro forma basis including Athens. This quarter Euronext reached an average revenue capture on cash trading of 0.50 basis point. Euronext market share on cash equity averaged 66.2%. The performance this quarter was also supported by the growth in ETF and the contribution from Euronext Athens. Lastly, financial derivative trading and clearing revenue was at 14.1 million euros, a 10.2% increase compared to the second quarter of 2025. These reflect resilient revenue capture and the contribution of Euronext Athens. I'm now moving to slide 13 for the EBIT average. Euronext reported EBITDA for the quarter grew by 20.6% to 354.5 million euros. This was driven by 45.9 million of organic revenue growth at constant currencies and 33.3% million of additional revenue from Euronext Athens and admin control. When we look at costs, Euronext reported 5.4 million of additional cost at cost and perimeter, and 12.1 million euros cost from change of scope. In the second quarter, 2026 non-underlying expenses were 4.6 million, mostly related to the integration of Euronext Athens and admin control. Adding the 0.9 million of non-underlying revenue Link to the IFRS 3 adjustment we just discussed earlier, total non-underlying items, including DNA, accounted for 5.5 million this quarter. To conclude with this slide, Euronext adjusted EBITDA for the quarter grew 21.1% to 360 million euros, with an adjusted EBITDA margin of 66.1%, up 2.3 points compared to Q2 2025. Moving on net income on slide 14, adjusted net income this quarter reached 245 million euros. Depreciation and amortization increased by 5.1 million euros in the second quarter of 2026 plus 10.6% higher than in the second quarter of 2025. This increase is mostly explained by the inclusion of the PPA purchase price allocation related to Euronext Athens and admin control. Net financing expense increased by 1.8 million. 0.9 million of this increase is linked to the non-cash interest expense recorded in our P&L related to the convertible bond issue in May 2025. The rest of the increase is mainly explained by higher interest expense linked to the anticipated bond refinancing executed in May 2025. Income tax increased by 16.6 million euros as a result of the higher profit before tax this quarter. Effective tax rate amounted to 26.4% for the quarter. Share of non-controlling interest increased by 4.6 million euros mostly due to the strong performance of MTS and Norpool as well as the contribution of Euronext Athens. As a result, the reported net income share of parent company shareholders reached 218.8 million euros in the second quarter of 2026, up 19.1% compared to the second quarter 2025. Reported EPS basic was at 2.16 euro per share, up 19.3% compared to the same quarter last year. Adjusted net income share of parent company shareholders was up 19.9% to 245 million. Moreover, adjusted EPS basic was at 2.42 euro per share this quarter, up 19.8% compared to the same quarter last year. I conclude now with the cash flow generation and leverage on slide 15. In the second quarter of 2026, Euronext reported net cash flow from operating activities at 185.5 million euros compared to 135 million in the second quarter of 2025. Excluding the impact of working capital, net cash flow operating activities accounted for 57.3% of EBITDA in the second quarter of 2026 versus 52.3% in the same quarter last year. As a reminder, in May 2026, we paid 322 million of dividends to Euronext shareholders and redeemed 386 million euros of bond outstanding. We also paid 89 million dollars to Nasdaq for the migration of the power futures. Net debt to EBITDA, as reminded by Stéphane, was at 1.3 times at the end of the quarter. These include 228 million euros of cash in transit at Norpool at the end of the quarter. Excluding these elements, leverage at the end of the quarter was at 1.5 times. And with this, I conclude and I give back the floor to Stéphane.

Thank you, Giorgio. These first seven months of the year clearly demonstrate the strength and stability of our diversified business model. In June 2026, the assets under custody in Euronext Securities exceeded 8.1 trillion. This is a plus 10.5% increase compared to June 2025. We welcome the largest capital raise in Greece in over a decade. and we continue to record very dynamic listing and follow-on activity in July. As we continue to integrate market and broaden our product offerings, our co-location services are also becoming increasingly relevant for multi-assets clients. Our volume-related business continues to demonstrate the benefits of our diversification strategy. June recorded the highest daily volumes ever for the intraday power market. We also further reinforced our position in Power Futures and reached the highest monthly volumes ever since the launch. On the 8th of July, we achieved a new milestone in fixed income with over $100 billion traded in a single day on our MTS Cash Markets. This very strong trend continues to be supported by sustainable growth in non-Italian government debt traded and by the expansion of our D2C platform. The volume of non-Italian government debt traded on NTS cash that day exceeded the total value traded on the platform, on the NTS platform, four years ago. And this is a sign of the increasing diversification of the NTS business beyond the Italian debt. We are also proud to announce that Euronext has been appointed as the official administrator of the key reference benchmark indices for the French sovereign debt market based on MTS data. This appointment reflects the confidence public authorities and market players place in Euronext in servicing the French sovereign debt market, and this is extremely encouraging for future development. On 15 July, we recorded the highest daily value traded ever in agricultural commodities, with close to 390,000 lots traded in a single day. On 13 April, we introduced extended trading hours, which were well adopted by the market, and we are already seeing the positive impact of these extended trading hours. Our scalable model, integrated value chain, discipline execution position is ideally there to deliver the next level of growth for European capital markets. Because we do deliver consistent financial performance. We do deliver consistent operating leverage and discipline execution on operations. We do deliver strategic initiatives. We do deliver A solid cash flow generation and balance sheet position and we remain extremely determined and ambitious to build the company fit for the future and to invest accordingly. So thank you for your attention and we are now ready to take your questions.

If you wish to ask a question, please dial pound key 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key 6 on your telephone keypad. We kindly ask you to limit the number of questions to two per analyst. The first question comes from Andrew Lowe from Citi. Please unmute your mic and go ahead.

Hi. Thanks for taking the question. I wanted to start with your MTS business. You hopefully shared some stats about volumes in the international business. I think that was on a particular day. So I was hoping that you'd be willing to share So a little bit more on the volume and revenue that you're generating outside of Italy, particularly Spain and Portugal. So could you maybe give us some more data there? That would be really helpful. And then how much of your future growth within this business do you expect to come from new markets versus deepening penetration within your existing markets? And then finally on this topic, could we just unpick your comments a bit on the developments in France and negotiations with the French debt management office? What are your expectations for what this may mean with your MTS opportunity within France? And the second question was just if we could get any feedback from your CSD offering in your expanded markets, which you are currently on trial with, and what should we expect from your launch in September?

Okay, I will briefly answer your question on the development in France, but I'll give the floor to expert Nicola Rivard who is going to walk you through the details of this decision on indices. I will then give the floor to Giorgio who will address your specific question on the non-Italian business developments within the MTS world. and Pierre Davout will provide you with an update as to where we are on the CSD offering. On the development in France, let's be clear. It's a first step because we are making a real breakthrough on indices administration, but it is a signal that things are improving in the direction of making MTS much closer than ever to the debt management offices. We are not yet Where we want to be, to have MTS as a recognized platform for trading, the secondary trading, the liquidity of the French sovereign debt. But we are making progress in that direction, hence this move that Nicolas Rivard is going to explain to you.

Thank you, Stéphane. So just to give a bit of context, the CNO or TEC index is a family of Daily Referent Traits for the French Government Bonds and each corresponding to a defined maturity. They were established by the French Bond Market Standardization Committee and Euronext is very proud to have been appointed as the administrator and the calculator of those benchmarks together with the AFT, so the Agence France-Tresor, the Banque de France and the CNO. So I think it's a testimony of Euronext's credibility and relevance in the French market and together we are going to develop this family of NDCs and increase its relevance in the French market. There are already billions of structured products using this index family as underlying and this is a starting point as mentioned by Stéphane that we intend to explore further.

Now, when it comes to MTS, what is important to highlight is that the key features of the MTS model is to attract The OTC trading from primary dealers into our electronic platform. So the adoption and the growth in Europe mainly comes from countries using that approach, which means incentivizing trading on the platform. And we have seen that happening quite consistently in the two countries that we mentioned, which are Portugal and Spain. The reason why we mention those examples is not to give you or give the data points, but is that the growth of the overall business is so strong, if we consider the peak that we reach of 100 billion per day, that the growth that we're achieving in other markets might seem to a certain extent limited by the growth of the core market. So what we wanted to point out is that even if excluding the growth of the core market, which remains Italy, now the international business is as large as Italy was some years ago. So we keep not splitting it, but it's to give you a sense that in five years we were able to grow the international business by the same amount of the business we bought. Then going forward, what is the space for further expansion? Again, it's keep pushing other countries to adopt the same model, which is, in our view, the best to reduce spreads and give visibility to investors and improve liquidity. And Stéphane commented on France. And clearly another area of expansion and growth is keep pushing the dealer-to-client services that we are offering in competition with other players.

Pierre Davout? Yes, so I will maybe share four points on where we are with the CSD expansion project. The first point is that the project will be delivered on the 21st of September. The testing phase is going well. The technology risks are behind us. The regulatory risks are behind us. So the new offering will arrive on the 21st of September. The second point is that we'll have early adopter. Market participants have already confirmed to us they will use the platform day one. And we also expect first issuers to adopt the model shortly after the 21st of September go live. The third point is that we see more clients confirm to us they are interested to join the platform once the platform is live and we demonstrate its production is stable and works well. The last point is that this is not a migration. This is a gradual ramp up, a gradual adoption by clients. So we expect this adoption to take time. It's a slow but powerful project. It's a scalable project. We offer a new product to the clients that creates value for them, that simplifies their operations on the European market. And we expect clients to adopt the product at their own pace gradually over the next quarters.

Thanks very much, really helpful.

The next question comes from Michael Werner of UBS. Please unmute your mic and go ahead.

Thank you for the presentation. Two questions please. One, a bit of a follow-up on the previous one. I was just wondering if you can, I think you mentioned that you need to share and convince and entice. I was just wondering in Spain and Portugal how that's being implemented or executed by MTS. Is this a revenue sharing? Is it profit sharing? And ultimately, what portion of the economics are currently shared with the larger broker dealer group? That's the first question. Second question, I think you alluded to some A.I. generated efficiencies on the call last quarter and indicated that management would have the choice whether to redeploy those resources or ultimately use them to kind of slow cost growth going forward. I was just wondering where you are in those discussions and whether you know you're ready or when you think you might be ready to provide us the market with You know the size of those efficiency gains. Thank you.

Thank you for your question. I will address the AI question in relation to the cost base of the group and the allocation of additional capacities created by AI. And Giorgio will answer your question on the relationship between MTS and broker dealers in the context of the expansion of the MTS business beyond Italy. On your AI question, We don't want to share numbers today for two reasons. The time for the revised cost guidance has not come. It may come in November when we release our Q3 numbers and when, as we have done for a certain number of years now, we clarify our decision on allocation of capital for for the following months and the cost guidance revised if needed. So that's the first reason. The second reason is that this is significant working progress. What I can tell you loud and clear is that the level of efficiency that AI is about to generate at Euronext is clearer and larger today than when we last spoke together about this development three months ago. And the question about what do we do with those gains, do we allocate them to shareholders through revised guidance and cost, or do we allocate it to shareholders but in the future through stronger investment in a new project, is still ongoing. What I can tell you is that for the moment, A significant part of the AI gains are reinvested in what I call making the company fit for the future. We are investing in two new initiatives, one of them being a development of a platform to deliver Digital assets trading. I don't like the language digital asset because the current assets are already digitalized. Let's call it digital decentralized assets, tokens. And we are very active in that direction. But I believe that in November, when we are likely to share with you the final picture of our course guidance for the rest of the year, then we will be in a position to be more specific and decisions will be much clearer. But the direction of travel is extremely encouraging.

I take the follow-up question of MTS. And just to be clear, incentives are not incentives that Euronext or MTS provides to the primary dealers. They are incentives that the DMO, the debt management office of a country, decides to provide to the best performers in the order book of an electronic trading platform. So to try to be more clear, DMOs have in front of them two options, two key options. The first one is to give a mandate to primary dealers who then execute secondary liquidity over the counter. And this is not the model of MTS. The model of MTS is to concentrate liquidity into an electronic order book within which DMOs can actually check and assess real time the performance of the primary dealers in providing liquidity. And according to the performance, they can attribute incentives that they decide upon. So it is not as is a model for the DMOs. Then today, MTS already covers 20 markets in Europe. And what we're trying to do and the engine of this international growth comes from a cooperation with those European DMOs to try to explain to them the advantages of the model in terms of reduced spread and increased liquidity and transparencies. and in certain countries we already are getting very strong successes and those are the ones we share with you, which is Portugal and Spain. But again, key messages is the incentives are not from us to our clients, it's from the DMOs to the primary dealers who are best executing on our electronic platform.

Thank you, that's helpful. Cheers.

The next question comes from Grace Dargan of Barclays. Please unmute your mic and go ahead.

Hi, good morning. Thank you very much for taking my questions. Maybe if I could ask one on the CSD expansion again, just coming back on that and then on the data solutions. So maybe firstly on the CSD, framing it in a slightly different way. What would you consider a good result for your CSD expansion into 27 and what would you consider to be more of a disappointment both I guess qualitatively and if you can give us any quantitative thoughts around that and then secondly the data solutions kind of technology services obviously quite strong in the quarter and is there anything particularly lumpy in there how should we be thinking about that going forward thank you

Repeat your second question on data because I'm not sure I understood it.

Basically, just within your data solutions, should we be thinking about that as a run rate going forward or was there anything particularly lumpy in the revenue we should be thinking about?

Okay, so Nicolas Rivard is going to answer your question on the momentum of data solutions beyond the last quarter. And I'll provide some explanation to what's the definition of success for the CXD expansion. I think Pierre Davout articulated in a very transparent manner where we are. For me, the definition of success is the successful delivery of an industrial project That is live and where early adopters are demonstrating that this is the right solution and the most competitive solution when it comes to new technology, fit, competitive business model and integrated value chain. And in this respect, we are close to what is the first level of success. Then the definition of success over time will be the ramp up of adoption by issuers. Clearly, We are building a new market player. It will be successful, but it will take time because, as Pierre said, it's not a migration where on Friday you are on one system and on Monday you are on a new one. We are creating an alternative to an incumbent. Impact and success have already been delivered because the incumbents have already massively reduced their prices to prevent our projects from being successful. So we have clients who thank us already by telling us, thank you for creating something new because you are pushing the price down. But the success is not only the dynamic in the market, it's not only a product platform that goes live, it's also that following the first players, we get the second layer of followers. But in any market, we have clients who tell us, I will come because your value proposition is compelling, but I don't want to be the guinea pigs of this project. And you have other players who say, I want to be among the first ones because I'm not satisfied with the current situation. So I do need something new immediately. So we are delivering something that will work. We are delivering something that will make money. We are delivering something that will have a ramp up, the speed of which is not known for the moment, but it will be progressive. And the reason why we don't share numbers The reason why you will never get specific guidance on that project is not because we are more cautious on this project than any other one. We don't deliver specific guidance on power derivatives, revenue generation, despite the fact that it has been an amazing success. What we want to convey is that each disruption to the existing markets by creating a new offering As phase one, which is building a project, phase two, which is getting early adopters and phase three, which is ramp up. And that's what we are going to do. I'm sorry for answering you in something which may be a bit too long, but I really prefer to be roughly correct rather than precisely wrong by giving you numbers that we don't want to share and that do not exist for the moment.

So on your second question on data solution, so let me share two highlights. The first one is this performance in the quarter was not driven by a specific one-off. It was performed by the strong performance and growth of a large number of underlying businesses. The first one being the index business, which has performed very well In this quarter and show a continued growth. The second one is, as already alluded to by Giorgio, is a strong participation, the continued strong participation of retail investor on the market, on Euronext market and looking at Euronext data. We are in the quarter averaging close to 9 million retail investor looking at Euronext data, which is a growth of 50% 5-0 year on year. and more than double since the beginning of 2024. And this has been sustained over the quarter. And also the strong success of non-real-time and current product that we deliver to the market. and also solid real-time market data demand. And the second point is that I will not elaborate on the future, so I cannot comment on the growth of moving forward, but what we have seen, and I rated the point number one, it has been driven by several cylinders as part of the data solution business.

Understood. Thank you very much. The next question comes from Benjamin Goy of Deutsche Bank. Please unmute your mic and go ahead.

Good morning. Two questions just from my side. First, on Greece, which in the first half grew more than 50% revenues, just wondering how much better is this versus your initial plan and whether you see the first revenue synergies now with Greece being part of a large integrated exchange. And secondly, similar on a recent acquisition, Admin Control, Up until recently, it looked like the revenue growth was accelerating at admin control. I was just wondering whether you can give an update on the rollout of activities and how this business is shaping up now more than India after punctualization. Thank you.

So I'll take your two questions. On Greece, the success, the performance of ATEX or Euronext Athens is significantly higher than what we had anticipated when we acquired the company in November last year and then when we launched our offer during the summer one year ago. This is the outcome of a combination of factors, mainly three of them. The first one is that, like everywhere, the equity markets benefit from the current boom on volatility. Second, there is a country-specific momentum with a rally from the rest of the world towards Greek assets, recovery of the Greek economy. We have been working very hard with the ATEX teams to build new product offerings and particularly to help them in the IPO momentum. And honestly, the fact that we were able together to attract IPOs of shipping companies, one of them has already taken place during Q2. Two others are scheduled for September. The outcome of the combination of efforts of the legacy listing teams of Atten Stock Exchange and the listing teams of Euronext as a group. So that's very encouraging, but all the All the meters of the success of the Athens Exchange are green. And this is also a testimony of the great success of the Greek economy, which is recovering at an impressive pace. As you know, Greece is celebrating, like Portugal, their third year of budget surplus. and Greece borrows for 10 years at a cost which is cheaper than the one of the UK and France. So this acquisition was timely and we invested at the right price in the right place. When it comes to synergies, we are very encouraged by the first work we have done in the country. As you know, we are committed to deliver 12 million of run rate synergies by the end of 28. But we will be probably able to do, as we have done in other countries in other similar situations in the past, better because we are finding a situation which is very encouraging with Extremely talented workforce, great opportunities of revenue synergies, flexibility on cost synergies, and we are very encouraging. As you know, the next milestone is the migration of the trading technologies and the connection of the Greek capital markets with our single technology pool, a single technology platform, a single liquidity pool, a single order book. In June 27, but between now and June 27, there will be also significant work done across other revenue generation and other cost items. And on admin control, We are integrating admin control within the rest of the group. They are now fully part of our corporate solutions. The sales force is integrated. We are deploying admin control in a very aggressive manner in non-Nordic geographies, in particular in France. And the success of admin control going forward is very much related to the fact that it is now Fully integrated when it comes to generating clients lead and following up on those leads to transform client interest into clients invoicing through a single integrated commercial workforce. So we are very encouraged also that this integration of admin control within our corporate solutions structure is going to create a situation where we would be much more reactive to address churns when and if it comes because as you know in any SaaS business this is the only way to be able to be agile and timely when it comes to adjusting to churn situations.

Thank you very much.

Next question comes from Oliver Carruthers of Goldman Sachs. Please unmute your mic and go ahead.

Hi there. Morning. Oliver Carruthers from Goldman Sachs. I've got two questions, please. So the rise of retail is clearly becoming a more important theme for Europe, as you're calling out with this result. If we look at the US, it's helped drive growth in the short-dated options market, now single stock futures, and also the rise of international retail is driving demand for extended hours trading. Could you, Stéphane, perhaps share your thoughts on how some of these developments that we're seeing in the US might make their way into Europe and what it could mean for Euronext? So that's the first question. And the second question also on retail. Does the consolidated tape coming into effect, I think in September, affect the retail data revenues for you? I know you're going to be part of the consortium of providers with Euro CTP, but I understood this data was going to be free, pre and post rate data for retail. So if you could clarify the incremental advanced data solutions revenues that you're seeing from retail that'd be great thank you

Okay, so I'll let Nicolas answer your question about the way we intend to capture the renewed interest of retail investors because that was your first question and what we are going to do and why we do some of the things that have been done in the US and why we don't do other things that are done in the US. On the consolidated tape, as you know, Euro CTP has been selected by ESMA to run it. We are monitoring closely the launch of this consolidated tape. At this stage, we don't foresee any material impact on our revenues because this is just a really preliminary stage of consolidated tape. As you know, there is a debate with the new regulatory package as to whether or not moving on to a new consolidated debt should be considered or not. The consensus within the Member States is to and to wait and see how the current consolidated TEP will develop before going to a new consolidated TEP environment. That's the current consensus in the United States. So we have to handle the current one, which is not live yet. The provider has been selected, but the consolidated TEP is not live yet. For the moment, we don't foresee any material impact on our revenue base in the context that Nicolas Rivard described before. Now, Nicolas is going to answer your question on the retail participation in particular, and also Camille Beudin, who is in charge of our diversity business and now covering all the derivatives.

Thank you, Stéphane. Thank you for your question. On the retail, indeed, I think we shared a number of KPIs showing the strong retail participation in the cash equity market and also exemplified by the data consumption from those participants. So a couple of data points. What we are doing and what we have done successfully to capture and to support the growth of retail investors is First, to expand the assets that can be traded on Euronext on Optic platform from our retail broker and retail investor already connected to Euronext. So on Euronext, on Optic, you can trade basically All European assets on cash equity and you can trade almost all U.S. stocks. It has been a very successful endeavor since we expanded this market called Global Equity Market. The growth has been 73% year-on-year, so 73% year-on-year, and the growth is continuing. So that's the first answer to your question, is to allow our client to trade as many stocks as they want on our platform without changing their setup. The second one, and I think you referred to it in your question, is what we do on 24-7. As you would imagine, we are in constant dialogue with our clients. As you rightly said, it is mainly driven, 24-7, 24-5 discussion is mainly driven by retail demand, and possibly retail demand from other geographies, by the way. At the moment, we don't see a huge consensus to expand beyond what we call extended trading hours. We already provide a trading up until 8.30 to 10 p.m., depending on the asset class. And of course, much more for the FX business, 24-7. That being said, we monitor the situation. are looking at the recent development in the US and digital asset space to assess what we could expand, what we could implement more, but it's a bit early to comment further on that.

On the derivatives franchise, we are innovating for retail participants. We've launched in May mini equity options, extending the range with weekly expiries and additional blue chip underlyings. We are very encouraged By the traction we are getting with more than 600k lots traded on this product and we are also launching a mini ETF option based on highly traded usage ETF which are a retail oriented product when it comes to more globally for the commodities franchise and to your point around trading hours we've extended trading hours for The commodities market and the MATIF in particular by two hours earlier this year in April. And again, here we are very encouraged by the results we are seeing because the volumes traded in the, let's say, end of afternoon session after 6.30 have been significant. Today, more than 5% of our volumes are traded during this extended trading hours.

Thank you.

Next question comes from Thomas Mills of Jefferies. Please unmute your mic and go ahead.

Hi, good morning. Can you tell us if you've had any repricing across your business in the second quarter and whether there are any repricings on the horizon that we should be thinking about? And my second question is on NTI. Obviously a nice contribution there in the second quarter, helped no doubt by volatility and spread considerations. But could you give us a sense of how much of the uplift is coming from the commodities derivatives business? Thank you.

So I let Giorgio comment on the NTI question. On the repricing question, there is no repricing season. There is ongoing adjustment of pricing to competitive realities that are moving pieces and that are very different in the various projects and various products that we trade. So we are in a position to adjust prices, which is fundamentally different All the solutions we provide to our clients. What I can tell you is that we try to remain competitive and to offer the best options to our clients. And we try to make sure that the clients do pay for value we create to them. But sorry again for being roughly correct rather than precisely wrong. But in some areas, our prices will be adjusted upwards to reflect the value In some areas, the prices will be adjusted downwards because the competitive pressure is some situation that we have not chosen and to which we need to adapt.

Now, on the NTI. Simply, if we look at the performance year on year, so comparing the second quarter of 26 with the second quarter of 25, Out of the three elements that you mentioned, which means volumes, volatility, and spreads, the key element that plays into the double-digit growth was the improvement in the spreads. If we look at quarter-on-quarter, Q1 and Q2, the key delta of the performance is more linked to the volume, and in this, the migration of Power Future plays a key role.

The next question comes from Hubert Lam of Bank of America. Please unmute your mic and go ahead.

Hi, good morning. I've got two questions. Firstly, on fixed income, can you talk a bit more about the growth into the D2C business and more about the traction you're gaining there? Second question is a follow-up on advanced data solutions. Can you talk about how much of the revenues is subscription-based, just to get a sense in terms of the sustainability of that business? Thank you.

So, Giorgio is going to answer your question on the fixed income unit client business development, and Nicolas is going to answer your question on advanced data.

Okay, so let me start on the question on MTS. The first element I wanted to highlight is the fact that we are progressively expanding our offering. We are strong in government bonds, we are getting traction in credits and we launched beginning next year our top offering in collaboration with clients. The growth that we are seeing actually is quite significant with growth rates in volumes and revenues which are the double digits. If you want a bit, the element that I just alluded to is that the overall growth of the underlying core business, which means that the D2D is so high that to a certain extent these remain in the overall portfolio. as a minority portion. So it's a nice business, it's growing double digit, but again, as everything else is growing at tremendous speed, the relative weights of the component remain fairly similar.

And on your second question with regard to advanced data solution, The extreme vast majority of the business is subscription-based. I mean, if you think about the way we charge in our commercial model, which is public, it's driven by the number of the subscription to different market data products, real-time, non-real-time. And the only few exceptions, but again, it's very small compared to the size of the business, is some more volume-driven indices and subscriptions that we have. So the vast majority is subscription-based.

Thank you.

The next question comes from Arnaud Giblat from BNP Baipa. Susan, you may can go ahead.

Yeah, good morning. Could we come back to Euronext Securities, please? I think last quarter you mentioned that you had three firm commitments from issuers to shift over and a handful which were deeply considering this. I'm just wondering what sort of progress has been made on issuers committing to move, if any. And secondly, a similar sort of question specifically on custody. I'm just wondering what the situation there is. Have there been some larger, if you could name perhaps any custodians that have firmly committed to move and how this is evolving? Thanks.

Thank you Arnaud and thank you for your support. So we give the floor to Pierre Davout who is going to answer your two questions. The first one on the onboarding of new issuers and the second one on the momentum with custodians.

Thank you for the question. So on the first point, we are on track actually. The first issuer migrations that we announced in the past quarter, issuers have confirmed to us they want to move. We are organizing the migrations and we expect the migrations to expect shortly after the go-live of the 21st of September. and we also see further issuers who are interested to move to Euronext securities as soon as the first wave has been executed and they have seen their peers successfully moving to Euronext securities. On the point related to the custodians, so we, as you remember, we announced a couple of weeks ago that a number of leading custodians were actively participating to the testing phase in order for them to be ready to allow their own clients to use Euronext securities. We are still progressing on that. We expect actually the largest settlement agent to be ready either day one or shortly after day one, two loader clients to become able to use Euronext Securities. Now the decision will come from the underlying clients and as we explained earlier in the call, we expect these decisions from underlying clients

The next question comes from Ian White of Autonomous Research. Please unmute your mic and go ahead.

Hi there. Thanks for taking my questions. I had a couple of follow-ups in areas that we've already been pleased. Just firstly, on your next appointment as administrator for those reference indices for French sovereign debt, can you just explain to us how that specific change might enhance your strategic position in the French government bond market? I'm thinking about the relevance of MTS prices for market participants and the impact that can have on trading volumes, direct license fees. and potentially the opportunity it might give you to launch listed derivatives contracts. Maybe you could just help us a little bit in those areas, please. Secondly, on the CSD expansion, by share of traded value, what portion of market participants designated an alternative CSD during the testing phase and ahead of the go-live What was the figure of your new settlement model in September, please? What was that figure, if you're able to share that? Thank you.

So we will not reply because we don't communicate on the second question, because that will really be in a territory that would be precisely wrong rather than roughly correct. And I think we have covered the momentum in a very clear way. The project will be live in September. We have early adopters. We have a momentum of clients who don't want to be guinea pigs and who are in a quasi-wait-and-see mood, but who have confirmed that as soon as the project is launched, they will come. We have the relationship with the custodians that have been described. But Pierre, I mean, we have all the information that you refer to, but we don't want to Thank you for your question. Let me clarify a couple of things. The first one is this family of NDC.

was already existing and was already active data. The difference from yesterday to today is that as this family of indices is more and more used as an underlying for structured product as a start, The French Authority and the French Bond Market Standardization Committee appointed Euronext as the administrator and the calculator to help grow this family of NDCs and to exploit this family of NDCs. So we are very happy with the trust. We think that its position, Euronext, has been more relevant in the French sovereign yield curve. And that's an important step. So the family was pre-existent, but indeed, as you rightly mentioned, the goal is to develop this family of NDCs and to develop the product which are using this family as an underlying. So that's the first step, as mentioned by Stéphane, and we will take it from there to grow A, the index of business, and B, leverage this as a potential further expansion in the French sovereign debt.

The next question comes from Julien Delbovolsi of ABN AMRO AutoBHF. Please unmute your mic and go ahead.

Good morning, gentlemen, and thanks for taking my question. I have just one left on the revenue capture. So this one came to 0.5 bps, which is down a bit from the recent levels. And I think Giorgio mentioned that that is mainly from the ETFs enlarged or the size. I'm just wondering, where do you think revenue capture will settle in 2027 when you migrate the cash trading of ATEX to OPTIG? Should we expect the repricing of trading members up or down in the process? Thanks.

First, thank you for your question. The yield that we provide already includes ATEX, right? So it's already included in the number we provide to you. Now, with regard to the evolution of pricing in June 27, it's ongoing with the local community. It's not something that we We are ready to communicate at this stage. We will manage, obviously, the various participants, A, to grow the market and continue to boost the volumes, and B, continue to keep a high revenue capture. But at this stage, it's very early to share this information to you.

And maybe I would compliment saying that the drivers are always the same, which means that increased volumes usually come under reduction in the revenue capture. Increased orders size are again a push for lower revenue capture, which means that keeping 0.5 with 16.7 billion ADV and with record high level of Trade size is quite of exceptionally strong performance. So you see that as a decrease, but when volume grow 20% and order size increase as well, it is quite remarkable. I wanted to highlight that because you should always look at revenue capture with the volumes.

Thanks a million, just to follow up if I may.

Okay, please follow up.

Yes, I think my line was muted. Sorry for that. Yes, on the also revenue capture, Giorgio, I thought that we have different pricing schemes, especially if you kind of look across the entire, let's say, market participant spectrum. And I thought that the brokers in retail trading volumes, those guys, they usually pay the higher price, so to speak. So wondering now how that the 0.5 pips now that we see exchange Q2 How is that skewed, if you can quantify that, please, from the high retail volume that you've seen in the quarter?

I mean, I understand your question. It's truly intricate, I would say, if we need to cut all the elements. What I would do for simplicity is just to say that when volumes are very high, you should think that The participants in our order book who get, on average, a lower price are more frequent when the volumes are low. And therefore, in any event, if we need to pick the key elements that define the yield, the volume remains the key driver. So then, of course, we could further split it up, but it's far too complicated to do it during the cold. So for simplicity, Look at the correlation between, inverse correlation between volume growth and revenue capture, which remains the most relevant one.

The next question comes from Hervé Prouet of CEC Seed. Please unmute your mic and go ahead.

Yes, good morning. Thank you for the presentation. A lot of questions have been asked. I will have two. A general one, with nine consecutive quarters of double-digit growth revenue and EBITDA, what prevents you at this stage to increase your mid-term guidance 27 in InnoVet for growth, is my first question. And the second question is on ETF, ETF growth. especially in equity market cash equity trading and clearing I was wondering if you can give us a sense at what growth trajectory ETF is and how much portion ETF represents you know for example in cash equity trading and clearing out of the 118.5 millions you reported in cash equity trading clearing in a second quarter thank you

Thank you for the question. Nicolas will answer your question on the momentum on the ETF asset class and I will answer your question on the guidance. We are not going to revise the Innovate for Growth guidance for 2027. Despite the fact that anyone who computes the number since 2023 can observe that we are significantly ahead of the above 5% CAGR growth for the top-line ambition, the above 5% CAGR growth for the EBITDA ambition that we had committed to deliver in November 2024. We don't revise this guidance for the moment because as a matter of We are not in the business of entering into bovine gastric systems, so we are in the business of Under promising and over delivery and that's what we are going to do. We are very disciplined house. We have over the past 10 years multiplied by 10 the stock price. We have over the past 10 years paid more than 3 billion of dividend to our buy bank and over the past 10 years we have not posted one single impairment for any acquisition. So we will remain this type of company and at this stage we don't revise the guidance. We believe that the company has never been so strong and will continue to be strong. We are perfectly cognizant that some market conditions can evolve, but we are absolutely convinced that quarter after quarter we build a business that is more and more diversified and more and more resilient and more and more immune to external market conditions. When we get to a level where we believe that we have sufficient confidence for describing the future, where we are in a situation where we are in a visibility on the ambitious project we tried to develop in a quasi R&D format to make the company fit for the future, we will share with the markets the new expectations. But there is a fundamental difference between creating expectations, which is the conversation we are having this morning, for example, and what we do internally, which was much more ambitious, much more systematic, much more rigorous and much more intense. And the bridge between expectations that we create in a very cautious manner and the hard work that we are doing internally, the bridge is the cost guidance and the revenue mid-term guidance. So these will be adjusted in due course. As always, I think next time we speak, we will be in a position to give you a revised cost guidance, but that's not the moment to do it because, as I told you, the specificity of the cost guidance for this year is that we need to decide how we factor in So, what was an intuition last quarter on AI impact on the cost guidance is becoming now a process question, and we will be in a position to address this cost side in a very precise manner in November. and we'll see where we are on the overall development of the company and we'll see where we are because there are all sorts of moving pieces and we'll see how we translate the status of the company at that time into an externalized revised guidance on ETF.

Thank you for your question. I will give you a proxy to answer your question so that you can Answer fully the revenue question that we don't, the split that we don't share. Point number one, the business deliver a very strong performance as we said in Q2 2016. Volume reach a daily volume of 1.4 billion euros right out of the 16.7 billion euros that Giorgio added to previously, which is an increase of 46% year-on-year. This is one of the highest quarters ever, slightly down after the exceptional Q1 quarter. Interestingly, this growth was driven both from France and Italy, our two largest ETF venues. Of course, this activity is supported by continued economic and political uncertainty, but also by the success of the ETF. as a liquid and transparent instrument for portfolio diversification and rapid micro-allocation. One additional data point I want to share with you is the retail participation in ETF is increasing very significantly, 87% year-on-year, confirming the increased use of ETF by individual investors. And this has been supported also by the expansion of our flagship program, Best of Book, for Retail Investors in Italy in November 2025 and which brought additional adoption in this market so together with Euronext project and initiative around ETF for Europe to build one ETF market several countries the expansion of best of book to grow to support the growth of retail investor and the underlying driver of growth in the ETF market you would lead to the to this record performance and the record volume that we have since the beginning of 2026. Thank you.

Thank you for the answers.

There are no more questions at this time. I will now hand back to our speakers for their closing remarks.

Thank you very much for your time and as always the dream team of investor relations together with Giorgio, Judith, Margot are available at any time to help you better understanding the performance of the company and the development going forward. Thanks a lot. Have a good day and enjoy the summer break.