Euronext NV is targeting organic compound annual revenue growth of 2% to 3% during fiscal years 2019 to 2022, driven by diversification, organic growth and cross-cycle trading growth in line with European GDP.
The pan-European stock exchange group is also aiming for organic EBITDA margin to grow above 60% in 2022, excluding potential acquisitions, as part of its three-year strategic plan while it continues to seek external diversification opportunities. The projections are based on 2018 pro forma revenue of €734 million, including the fiscal year figures of Oslo Børs VPS Holding ASA and Euronext Dublin.
Euronext expects a €12 million one-off hit related to internal project costs during the three years. Capital expenditure is projected to remain between 3% and 5% of revenue.
Meanwhile, the stock exchange group expects €12 million of run-rate cost synergies by 2022 at Oslo Børs VPS and expects to incur €18 million in restructuring expenses. Euronext raised its stake to over 90% in Oslo Børs in June.