• For the first time since 2001, total revenues decreased (-10%) to USD 28 bn. All the types of exchanges and all the regions were affected.
• Trading revenues from both cash and derivative markets declined following the drop in volumes.
• Total costs also decreased (-5%) but to a lesser extent.
• Profitability then decreased sharply:
• Net income was down 25% at USD 9 billion
• Average net profit margin was 32% (against 39% in 2011)
• Nevertheless this increase was partly due to exceptional items:
• EBITDA decrease was less pronounced (-15%) than Net Income.
In 2012, the general environment was very unfavorable for exchanges worldwide:
- Equity volumes decreased by 22% in USD and by 14% in number of trades;
- For the first time since 2001, volumes also decreased sharply (-15%) on derivative markets (-19% for equity derivatives and -15% for Interest Rate derivatives)
In that context, trading revenues decreased sharply (-21% for cash markets and -14% for derivatives).
The activity on primary markets was also unfavorable. The total numbers of listed companies decreased by 0.2% and listing revenues were 1% down.
Financial income increased significantly (+15%) as well as revenues from “other services” (+5%). “Other services” include post-trade services for cash markets (+7.8%), market data revenues (+9.5%) and IT sales and services (+3.4%). Nevertheless, it was not sufficient to counterbalance the drop in trading revenues.
Looking only at the total net income for the industry can be quite misleading. The 25% increase was largely driven by exceptional items recorded by two exchanges (CME Group and LSE Group1). Starting from EBITDA and going down to the bottom line provides a more accurate picture of the financial health of the industry: