Hello, and welcome to the Euronext Completion of the Acquisition of the Borsa Italiana Group and Q1 2021 Results Call. My name is Rosie, and I'll be your coordinator for today's event. Please note this call is being recorded and for the duration, your lines will be on listen only. However, you will have the opportunity to ask I will now hand you over to Stephane Buschner, CEO and Chairman of the Managing Board to begin today's conference. Thank you.
Good morning, everybody, and thank you for joining us this morning on such a short notice as Euronext Today, the acquisition of the Borce Etienne Group and releases its Q1 2021 results. I am Stephane Bouchnard, CEO and Chairman of the Managing Board of Euronext. And today with me is Giorgio Modica, the Euronext CFO. I'd like to start with a few words about the position of the Bosteis and A Group, which closes today. And I will take you then through the highlights of the Q1 2021 before opening up for your questions together with Giorgio Modica, our CFO.
Today is a very important day for Euronext because today is the first day of a very Exciting new chapter, not just for Euronext as a company, but I believe for Euronext for European Capital Markets. With the completion of the acquisition of the Borstaliana Group, Euronext has successfully created the leading pan European market Infrastructure in Europe. Euronext will leverage these enhanced capabilities to build and strengthen the backbone of the Capital Markets Union in Europe to connect local economies with global markets. Clearly, with this acquisition, Euronext is now First, the number one venue for equity listing and financing in Europe with around 1900 companies totaling Approximately €5,100,000,000 of aggregate market capitalizations. Euronext is also the number one venue for cash, equities and ETF trading in Europe with €12,200,000,000 worth of average daily traded value on the basis of last year pro form a numbers.
Euronext is also a leading European government bonds trading platform, thanks to the integration of MTS to the Euronext trading offering. And Euronext is now a leading operator in post trade infrastructures with the development the acceleration of the Euronext of CSDs with Monte Titoli joining us, including also a multi asset class clearinghouse, CCNG. And in terms of CSDs, with the asset and the custody for an aggregate amount above €6,000,000,000 This transaction strengthens Euronext. It enhances its strategic prospects for future growth. It opens Opportunities for further product innovations, for further geographical expansion and for further business diversification.
Moving to Slide 5, about the new revenue profile of the group. The Borfait Alianae Group acquisition is transformational for Euronext, because first it significantly increases the scale of the group, But it also significantly diversifies the profile, the business profile of the group in terms of revenue mix and also in terms of geography. On a pro form a basis, we have now crossed the symbolic €1,000,000,000 revenue bar with for 2020 total revenue, A total amount of €1,400,000,000 approximately. Of this total revenue amount, 49% was non volume related revenue and 26% is generated in post trade operations. Italy is now the largest revenue contributor with 34% of the 2020 pro form a revenue.
The pro form a 2020 EBITDA for the combined group amounted to €790,000,000 representing a 58% EBITDA margin. Lastly, the pro form a 2020 adjusted net income amounted to €498,000,000 Moving to Slide 6 to focus on the financing of the transaction. The final purchase price paid to London Stock Exchange Group is €4,444,000,000 in cash. The difference With the amount originally stated, it's related to an agreed price adjustment mechanism to reflect The cash generated by the Boursaytaytayana Group since June 30, 2020. This transaction is financially compelling for shareholders.
We expect the acquisition to be mid single digit accretive on adjusted EPS before synergies And double digit accretive on adjusted EPS after run rate synergies in year 3. We expect to achieve a total amount of €60,000,000 of annual run rate pretax synergies by year 3, including €45,000,000 of annual run rate pretax cost synergies and €15,000,000 of annual run rate pre tax revenue synergies. Before discussing the refinancing of the transaction, I would like to highlight here The change in the Euronext shareholding structure that occurred with the completion of the transaction. GDP Equity and Intesa Sanpaolo to Italian cornerstone investors We come today Euronext shareholders through the subscription of a private placement for a total amount of EUR 579,000,000 with 6,600,000 of new ordinary shares. In addition, both GDP Equity and Intesa Sanpaolo Joined today, the Euronext reference shareholders of which by entering into a new reference shareholders agreement, including As of today, the reference shareholders sold 27.85 percent of Euronext Capital before the results of the rights issue offering.
Moving to slide 7 for an update on the refinancing of the transaction, I just wanted to highlight the following. The transaction is to be financed through EUR 3,700,000,000 drawdown from the bridge loan facility, €300,000,000 of use of our own cash, €600,000,000 approximately of proceeds from the private placements described by GDP Equity I need to start some follow. The bridge loan facility will be refinanced through first, the launch of a capital Increased by way of a rights offer for a total amount of €1,800,000,000 and the issuance of new debt for €1,800,000,000 Euronext reference holders have announced their support for the rights issue, and they will either fully subscribe to the rights offer or execute a cash notable transaction. Moving now to the transitions of our Q1 2021 results. As you have seen it, We have decided to anticipate the results of these Q1 numbers to launch our right issue offering during favorable market conditions.
Euronext reported a very strong start of the year, with growth in revenue and adjusted EPS. This strong performance is to be compared with Q1 2020 when, as you may remember, trading volumes were exceptionally high due to the market volatility as the pandemic hit. In Q1 2021, revenue increased by €12,400,000 up plus 5.2 percent to €249,200,000 And this clearly this clear solid performance was driven By two factors, strong organic growth in non trading activities, especially in listing and in post trade, But also continued benefit from recent acquisitions with the BP Securities in Copenhagen having joined Euronext last August. And thus, despite the tough comparison, as you remember that Q1 2020 trading volumes and revenue were extremely high to the COVID-nineteen market volatility, this is still a very good quarter. This overall performance translated into An increase in the share of non volume related revenue in OMIC to 53% of total revenues that cover 132% of operating expenses excluding D and A.
On the cost side though, the reported increase is mainly related to the consolidation of BP Security costs in Copenhagen. However, integration is on track with €4,500,000 of run rate cash cost synergies already delivered 8 months following the acquisitions of this company in Denmark. So it's approximately 64% of the targeted Cost synergies that have already been delivered 8 months only after the acquisition. On a like for like basis at group level, The 4% growth in cost is related to cost for the preparation of the acquisition of the Boursite Arena Group And the mechanic adjustment of the long term sensitive plant computation, leading to higher staff costs. We continue to deliver on our cost discipline Despite those two elements and in addition, we over delivered on targeted €12,000,000 of cost synergies for Oslo VPS.
1 year ahead of schedule, we have delivered €13,800,000 of synergies delivered in less than 2 years following the acquisition in Norway. This translated at group level in a group EBITDA and EBITDA margin of 59.7 percent in Q1 2021. This EBITDA margin, which is lower than the CHF 63,400,000 that we delivered in Q1 2020, It's due to the dilutive impact of some new acquisitions that are under integration. However, on a like for like basis and at current constant Currencies, the Euronext EBITDA margin in Q1 twenty twenty one was 61.5%. This solid performance translated into a +6.2 percent increase in adjusted net income to €106,900,000 or €1.53 per share on the basis of the number of shares before the transactions we are announcing today.
On a reported basis, net income was up 2.2 percent to CHF98,200,000. I now hand over to Giorgio Modica for the detailed review of our business.
Thank you, Stephane, and good morning, everyone. I'm now on Slide 11. In the Q1 of 2021, Euronext consolidated revenue reached EUR 249,200,000 With an increase of €12,400,000 or 5.2 percent. These results were driven by contribution of our recent acquisition, Notably, VP Securities and by the organic growth in post trade listing and advanced data services. On a like for like basis and at constant currencies, Excluding the impact of Norpool, Ticker, $0.03 and VP Securities, Euronet consolidated revenue was down 3.7% In the Q1 of 2021, mainly due to a tough Q1 2020 comparison.
Now looking at the different business lines. Post trade activity revenue increased 61.2 percent to EUR 63,200,000 as a result of the contribution of EP Securities activity and the strong organic growth notably in our CSDs in Norway and Denmark. Listing revenue growth was driven by the strong performance of Corporate Services and by Equity Listing as we recorded an excellent quarter for new listings. Advanced Data Service revenues increased EUR 36,500,000 or 4.8%, driven by the good performance of indices and ESG products. Trading revenue decreased, reflecting lower Trading volumes compare to an exceptional market environment in the Q1 of 2020.
This was partially offset In cash trading by higher revenue capture and improved market share. Lastly, in our Q1 2021, Non volume related revenue accounted for 53% of total group revenue, reflecting the good performance of non trading activities And particularly, the increased proportion of post trade activities in our revenue mix. These non volume related revenue covered 132 percent of our operating cost ex D and A compared to 119% last year. Moving to the next slide, Slide 12 for Listing. The growth engine of this quarter were corporate services And Primary Equity Listing.
Listing revenue grew 9.4% to $38,800,000 In particular, Corporate Services continue to report strong organic performance with $9,100,000 revenue this quarter. This strong growth in excess of 30% from last year reflects continued commercial development and increased demand for our digital offering. With regard to equity listing, Q1 2021 was the Best first quarter for new listing since the Q1 of 2015. The momentum initiated in Q4 2020 and continued with 37 new listing on Euronext this quarter, of which 4 large caps And 33 SMEs listing this quarter, including several tech and innovative companies. Now in this respect, I would like to highlight that what you see in the P and L is impacted by IFRS 15.
As you know, IPO's revenues and follow on are spread over a period of time. The negative impact Year on year of IFRS 16, this quarter is in excess of EUR 10,000,000. So this gives you A sense of the actual business performance, which is not fully reflected in the P and L, you will see a sign of that In the cash flow conversion of EBITDA, it's under 25% due to, as we will see, Changes in working capital in Norpul, if we exclude those, the cash conversion is 89%, and here is where you see The actual contribution of the listing business. Secondary market activity reported a solid first quarter That's for the continuation of the growth momentum in ESG Listing. Moving to our trading business on Slide 13.
I would like to start with the cash trading. ADV decreased 20.7%, reflecting lower trading volumes due to Lower volatility compared to an exceptional Q1 2020. This decrease of volumes partially offset By good revenue capture translated in a 13.7% decrease In cash trading revenue to a total of €69,800,000 The average fee over the quarter reached 0 point 56 basis points compared to 0.5 basis points in the Q1 of 2020. Average market share on cash trading was 70.4% in the Q1 this year compared to 69.9% Same quarter 1 year ago. Moving to derivative trading.
Derivative trading revenue was down 25.7% To EUR 11,700,000 in the Q1 of 2021. Average daily volumes were down 20.6 Percent. This notably reflects a decline in derivative trading as trading member Reduced exposure to this product due to a risk off approach. Commodity product reported a record quarter in Q1 2021 with average daily volume increasing 8.5% to 84,000 lots, Resulting from the high volatility on the agricultural market. Average fee on derivative this quarter was €0.27 per lot, down from the Q1 2020, notably due to the decrease in index future trading volumes.
Continuing with trading on Slide 14, Euronext reported average daily volumes of $21,400,000,000 in the Q1 2021, Down 17.1% compared to Q1 2020, resulting from a less volatile trading environment. As a result and at constant currency, spot FX trading revenue decreased 17.5% to EUR 6,100,000. Powertrading reported €8,400,000 in revenue, reflecting the usual business seasonality. In Q1 2021, average daily volumes of day ahead was 2.94 terawatt hour, While average daily volumes of the intraday market was 0.06 terawatt hour. Moving to Slide 15 and post trade.
Revenue from our post trade activity Increased 61.2 percent to EUR 63,200,000. Clearing revenue was down 11% in the first Quarter 2021 to EUR 17,100,000 reflecting lower cleared and lower treasury income. Custody settlement and other post trade reported strong results on revenue to EUR 46,100,000, Mainly reflecting the consolidation of VP Securities and strong organic growth, as I mentioned, in the Nordics. Moving to the next slide, Slide 16. Advanced Data Services revenue was up 4.8 percent to 36 €500,000 driven by the good performance of indices and ESG products and a solid core business activity.
Proceeding now with Investor Services, revenue was up 19% to EUR 2,300,000 This quarter reflecting continued commercial traction. Lastly, on Technology Solution and other revenue decreased 11% In the Q1 2021 to EUR 11,900,000 reflecting a decrease in North Pool Shipping And cost recovery revenue offsetting by higher SFT and colocation revenues. Moving to Slide 18, and let's start with the EBITDA bridge. Euronext EBITDA for the quarter was stable at EUR 148,700,000. The EBITDA margin decreased to 59 point 7 percent in the Q1 of 2021, down 3.7 points, reflecting lower trading revenues The dilutive impact of recently acquired companies not being yet fully integrated.
On a like for like basis, The EBITDA margin was 61.5 percent this quarter, down 2.9 points. From a revenue perspective, revenue at cost and perimeter decreased €8,300,000 compared to last year, reflecting lower trading volumes compared To an exceptional Q1 2020. Looking at costs, group costs excluding D and A We're up EUR 13,700,000 to EUR 100,400,000 as a result of $3,400,000 of organic cost growth reflecting primarily staff costs related to LTI performance And cost for the preparation of the Borsa Italiana acquisition, partially offset by the continued cost control and synergy rollout And EUR 10,200,000 cost of consolidated acquisitions. Moving to Slide 19, So the net income, the net income increased this quarter 2.2 percent to EUR 98,200,000 resulting from the following elements: D and A mechanically increased impacted by consolidation of the recent acquisitions and NPPA. Dollars 3,600,000 of exceptional costs were reported in Q1 2021, primarily in relation to the acquisition of the Bors Itliana Group.
Net financing expenses for Q1 2021 was EUR 2,800,000 higher Compared to last year, reflecting the bond tap issue in June 2020 and the financing costs related to the Bors Itliana transaction. Results from equity investment increased to EUR 11,700,000 mainly resulting from the dividend received from Euroclear And from the contribution of LCHSA. Lastly, income tax decreased, translating into an effective tax rate of 27.4 percent for the quarter compared to 28.1 percent last year. Adjusted PPA, an exceptional item, adjusted net income was up 6.2% to 106,900,000 Translating into an adjusted EPS of EUR 1.53 per share this quarter. To conclude with financial, let's move to Slide 20.
Over the quarter, as I was mentioning while discussing about Listing, 125 percent of EBITDA was converted into net operating cash flow compared to 34% last year. This reflects A large positive change in working capital at North Pool. Excluding this positive impact, Around 89% of EBITDA would have been converted into net operating cash flow. And again, part of this very positive performance It's linked to the good performance of the listing business. Our net debt stands At the end of the Q1 at EUR 526,000,000 representing a net leverage of onetime.
Please note that this does not include the impact of BOSS Itliana acquisition. Lastly, Our liquidity position remains very strong, above EUR 1,100,000,000 including the undrawn RCF of EUR 400,000,000. It's fair to say that these as of today, this facility has been replaced with a new RCF For a total of EUR 600,000,000 that replaced the Forman 1 and is more In line with the new size of the group. Moving to Slide 22 for a trading update on the Bors Itayana Group. Despite, as we said, the very tough comparison base of Q1 2020, Bors Itliana revenue was stable compared to last year As the growth in Capital Markets and Information Services partially offset lower postpaid and technology service revenues, Operating expenses excluding D and A decreased by 5.1%, while EBITDA was up 3.4% $276,800,000 translating into a 61.9 percent EBITDA margin this quarter.
We will consolidate as of 29 April 2021 BOS Itliana in the Euronext Group account. And with that, I now hand the floor back to Stephane Bouchner.
Thank you, Georgiou, and thank you again for your participation to this call Convened on such a short notice, we were pleased to share with you our strong Q1 2021 in terms of performance. We will organize a deal roadshow to talk to eligible investors and shareholders about the right issue offering. And in addition, we will organize an Investor Day in Q4 2021 to share with you our updated strategy for the combined group. We are now available for your questions with Giorgio Modica.
Thank you. And the first question comes from the line of Benjamin Goy from Deutsche Bank. Please go ahead.
Yes, hi, good morning. Two questions, please. So as the amount of synergies have been reiterated, I was just wondering, so effectively so far this is an outside in view And only this morning you could start to do a deeper due diligence on the cost and revenue synergy potential. And we might get more information on that on the mentioned Q4 Investor Day. And then secondly,
We have spoken in
the past about the clearinghouse and its strategic potential for the group, but I'm more interested today in the data center. So maybe you can share a bit of the potential for the P and L you have from owning your own data center and what contractual obligations Basically determine the timing of realizing those. Thank you.
On the synergies, I think your the answer is in your question. It's exactly as you said. We reiterate the synergies Announced on the 9th October, we are going to spend a lot of time with our new colleagues to refine those numbers to move from a sort of Quasi, a top down approach to a more bottom up approach of both revenue synergies and cost synergies. This exercise will be very granular And we'll be concluded by commitments and guidance in terms of The growth profile for the combined entity when we release our new strategic plan in Q4 probably in October 2021. On the data center, what we can communicate is what I've said In qualitative terms, which is that this is, a, the largest IT project for Euronext since The optic development of the new trading platform, which was launched in 20 16.
2nd, that the date for delivery is Q2 2022. 3rd, that we have an ongoing dialogue With regulators and with the clients that are contributing to making this migration a success.
Thank you. And probably is it too early to give a range what the potential could be out of
The potential, sorry?
The potential of only your own data center for the P and L.
No, it's too early. That will be part of the overall presentation Of the group strategy and the group profile in Q4.
Fair enough. Thank you.
The next question comes from the line of Ian White from Autonomous Research. Please go ahead.
Hi, morning. Thanks for the presentation. A couple of questions from me, please. First of all, can you provide us with any help On the licensing of one off costs related to the Bosto Italiana acquisition.
Sorry, Your line is breaking up. Could you repeat the question?
Yes. I was hoping can you hear me okay now?
Yes, hardly. So could you speak very close to the microphone and slowly and that should be okay, but go ahead.
Sure. I was wondering if you can provide us with any help on the phasing of one off costs related to Borsa Italiana, So particularly the transaction related expenses and the guided restructuring charges to achieve the synergies. That's question 1, please. Secondly, I was wondering if you can give us any help at this stage With the likely amounts for intangibles amortization Borsa Italiana, particularly related to previous acquisitions. And when you look through The amortization of acquisition intangibles, when thinking about dividend payouts for 2021, Your policy, I think, refers to reported net income.
Hopefully, those questions were clear, but those are my two questions, please.
Yes. Your questions were very clear. So for your first question, You have a part of the answer in our universal registration document. In that document, What you will find are is the impact of the transaction. And more specifically, you will find a Part of the transaction cost, more specifically around €30,000,000 of cost in exceptional And €15,000,000 in financing costs.
Those are transaction costs. On top of that, there are going to be other costs Which will not impact the P and L in one go, but are going to face over time. And those are mostly related to the fee related to the takeout And the refinancing of the transaction, the biggest part of which is going to be the fees to The underwriters of the rights issue. And these amounts that you don't see reflected in the pro form a P and L 2020 that you In the universal registration document, it shall amount to around €35,000,000 So in total, the total envelope of transaction cost is going to be around €75,000,000 I hope that was clear. When it comes to your second question, you should assume That again, significant information, you can find it in the universal a registration document.
So the PPA amortization is going to amount on a yearly basis €255,800,000 But the short answer to your question is that today BOS The transaction, this number will increase to around 80, which means that on a quarterly basis, you should expect on top Of our D and A, an additional EUR 20,000,000.
Understood. That's helpful. Just on the first question, I was Also wondering if you could help us with restructuring charges to achieve synergies and anything around the timing of that please, if possible.
Now unfortunately, I cannot help you with the debt phasing. The target is over a 3 year horizon, and we will finalize you. We are just starting. As you know, I mean, this phase that we have been leaving has been full of constraints as Bors Itliana was under So we will need to finalize the plan, as you know, before the Q4 of this year, And then we will have a better view, but usually we do not communicate on very specific phasing. However, I believe it's fair to say like in all You should expect front loading of restructuring costs.
Thanks for your help. You got that.
The next question comes from the line of Arnaud Kiebler from Exane. Please go ahead.
Yes. Good morning. I have three questions, please. Firstly, on costs of Borsitelina, ex D and A. This quarter Borsitelina reported €47,000,000 of costs.
It's a bit better than what had been expected. I was wondering if something had changed in the parameters of costs in the parameters of the cost being transferred or if there are any one off impacts or And the €47,000,000 is a good level or a good run rate level to look at at pre synergies? My second question is on LCH and the potential transfer Of clearing activity there, since you're giving an update on the data center, How should we think about that on the LCH side? And my third question, I suppose, is coming back to the data center. Could you Perhaps tell us what the cost today of using external data centers is pre moving them to 3?
Thank you.
Okay. I'll answer the question on clearing and Giorgio will answer your question on the cost Of Borce Italiana. And on the data center, current cost to the extent we can cover this level of granularity. On the first question on LCH, we have an agreement live With the LTH STAYLTH Limited until 20 27 for the clearing of the Euronext flows. This is a structured relationship Where we sit at the Board of LCHSA, and we have 11.1% of the shares in LCHSA, We have a strong preemption right in the event of change of control of LCHSA.
So we have a solid and productive Cooperative relationship with LCH LSA, LCH Limited and LSC Group. In parallel to that, starting today, we own 100% indirectly of CCNG, Multi Asset Class Clearing House, which for the moment Has been used for the sole purpose of building and integrating silo in Europe. Our plans are the following. We want to embark into an ambition to Europeanize the business of CCNG While doing things in a rational manner because there will not be a binary Transfer of business from NCHSA to CCNG because it is just not possible and it's maybe not What is advisable or what is expected from our clients. So basically, we are going to spend the few months analyzing very carefully where we can create value for the Euronext group, considering the fact that we have 2 different Leggs in terms of clearing, one leg within LCHSA, another leg with CCNG, which are totally different clearinghouses.
1 is very European one, the other and big, and the other one is more local. And we are going to analyze in detail What it means in terms of reopening the CCNG business in terms of incremental technological CapEx, in terms incremental capital requirements to be added in the event of expansion Of the size of the clearing operations of CCNG, what it means in terms of incentives for clients Considering the various segments of the assets, we clear cash equity clearing is different from derivatives clearing, which is different from Some of these clearing that are different in terms of what are physically settled and the other ones that are cash settled, which is different from hypoglyric. They are different business models, And we need to face those analyses and so forth. So we've come out with a solution which will not be A or B or binary, and it's too early to factor numbers and to take commitment because the granular analysis has not started yet, although we have already few intuitions that we want to validate With the teams, but we'll continue to have a good cooperative relationships with the LST Group and we'll continue to be committed to develop CCNG.
So the answer to your question, the data center cost, it is not very easy because there are different layers of Cost for different services, because clearly there is a cost for the data center itself. Then there is a cost related to what is called the co location. But to that component, Euronext Receives as well a share of revenue and then there are as well revenue related to the connection. But to simplify things, what I can say is that the cost of the infrastructure today And the cost we pay to ICE is a high single digit 1,000,000 number to low double digit €1,000,000 number.
Thank you.
Our next question comes from the line of Haley Tam from Credit Suisse. Please go ahead.
Good morning. Thank you very much for the Could I ask one about the Bors Italiana and the 2 sort of smaller ones about the results themselves today? So in terms of Bors Italiana, obviously looking forward to the investor update in Q4, it's very clear that there are lots of different opportunities, the data center, CC and G revenue synergies cost induced that we can look to add value with this transaction. But I just wondered, given The stable revenue at Bors Italiana year on year that you showed us in Q1 and the very modest growth in EBITDA despite cutting costs, Is it fair just to say without any of those extra initiatives that this is a deal which would not Fundamentally changed the organic growth rate for UNX. So it's really your ability to deliver those extra things that we should be focused on.
So I wonder if you could comment on that, please. And then the other questions, which are much simpler. In terms of the results from equity investments, can you confirm that the U. K. Dividend that received in Q1 was the 2019 dividend.
So to the extent that there was a 2020 dividend to be paid, we should still expect that perhaps in Q3 this year. And then in terms of the strong post trade, particularly settlement and custody performance in Q1, it was even better than Q4, I think. So Can you give us any color on how much of this was perhaps retail participation versus any seasonality and how reliable this number might be as a guide going forward? Thank you very much.
Okay. So let me start From the easier questions, so yes, I can confirm that what we have received It's in 2019 and in case there should be 2020, this is going to be again booked this year. On post trade, I can Pinpoint the 3 key KPIs that drive the performance of our Mainly post trade activities in the Nordics and some of those elements are related to the retail participation. So the first one is the number of accounts that keeps growing as and this is directly linked to retail participation as Based on that, more and more individual open account to manage their wealth. The second element is the increase of the value of the asset under custody, Which has increased.
And the third element is that the number of settlement transaction in line with the good market momentum is increasing as well. The combination of these three factors is the key driver of the group of and post trade. Then to your first question, the first thing that I would like to highlight is the fact that revenue was stable. I take it as a very strong sign of resilience. As you know for pretty much everyone including yourself, Q1 2020 is a very tough comparison to bid.
And in terms of market condition, a very favorable one For the market infrastructure. So this is the first element. The second element is that I believe that the growth profile of the group It's going to improve, and we will not rely uniquely on the reduction of cost. That clearly is going to remain in our DNA. The reason for that is that clearly what we want to do is use the Euronext network To use and sell Borsitaglana products and the other way around, and we believe that connecting markets can be very powerful.
I can make just a few examples. MTS, the push of MTS on a European basis or we already Gassed about the clearing opportunities. So again, this is going to be a story of growth As well as a story of remaining discipline on cost as we have always been.
Very clear. Thank you.
The next question comes from the line of Johannes Thormann from HSBC. Please go ahead.
Good morning, everybody. Three questions for myself left. First of all, could you elaborate a bit more on the increase in the Yield in the cash trading business, 2 56 bps. How sustainable do you think? Is it just a matter of Product mix just helped me understand the dynamics there.
Secondly, in the results from investments, Could you break down the contributions from LCH and Euroclear, if that is possible? And last but not least, could you Also explain if the decline in Market Solution is already reflecting the Scentivo sale or is this coming on top in the next quarter? Thank you.
Yes. So let me take the 3 questions. So the first question, The result of this increase is as well linked to the fact that this is the Q1 we have Oslo bourse. So as we discussed in February, there is a very good We had a very good performance at the end of last year when we migrated to uptick. This good performance keeps evolving.
And so So the increase is partially due to that and partially due to the trend that we have witnessed together in the last quarters. So As I commented already in February, we do not believe that F55 is long term sustainable. And I would keep the target that we already shared with you. At the end of last year, we said that 5 was sustainable. Now we believe that 52, 53 is sustainable.
And then we will need to monitor the situation going forward. When it comes to Market Solution, The decrease there is mainly linked to the decrease of you have a part of North Pole revenues in there. And especially, there is a revenue which is a cost to recharge the shipping cost. The major impact is Added to that, not to the sale of Scentivo. And this is an impact on the top line Of around EUR 1,000,000.
However, the impact on the margin is much, much lower because the margin there are some costs attached To the revenues. And sorry, your second question, can you remind me?
The second question was on the result on investments, please, EUR 11,700,000.
Yes. Absolutely. Yes, I can do that. €9,200,000 is the result from of the European dividend And 2.4 comes from LTHSA.
Thank you.
Our final question for today comes from the line of Martin Price from Jefferies. Please go ahead.
Good morning. Thanks for taking my questions. I'm afraid I've got 3 quick ones. The first was just a follow-up On the clearing agreement with LCH, as you've stated, that runs through to at least 2027. I was just wondering if you could confirm whether Do you have the option to terminate that agreement early should you wish to do so?
Second question is on the data center migration. I was just wondering if you could comment on what sort of feedback you've had so far from market participants on the proposed relocation. And finally, clearly, you're in the process now of integrating a very large and complex deal and deleveraging. Just also conscious that you're an ambitious management team. So I wonder if you could provide us with a quick update on how you're thinking about scope for further M and A, perhaps Bolt on deals over the next 2 or 3 years.
Thank you. Okay. So the agreements with LCHSA and LCH Limited and LSEK in respect of clearing that was signed in 2017 Provides for windows of early terminations in the case of certain sets of your consensus, one of them being the fact that Euronext would buy At King House, obviously, those windows come with break up cost and the closer you get to the Termination of date of the agreement, the smaller those breakup costs, etcetera, there is also the mechanics driven By those windows, but those windows have been negotiated in 2017. The second question It's about the feedback from market participants in terms of migration of data center. Migrating the data center is a cooperative exercise Because as you know, some of our largest clients are committed or determined to co locate Their own servers next to the Euronext Core Data Center, to the extent that it encapsulates the trading engine and for all the clients that are sensitive to latency, This is an important element of the colocation motivation.
In this respect, they will have to be part of that exercise. We have great and productive discussions with all of them. All of them understand that post Brexit and in the context of an agreement that is So there's a sort of a termination date with the current provider. We had to wait options and We work together with them in a very productive manner as they will be partners of this Migration, just like the regulators will be partners to this migration. But we are moving to what is very important, A platform which is rated for our Level 4 platform, which has exactly the same performance standards as the one we are using Today, near London, the only difference which is noticeable is that it is because it's a relatively new platform, it is Fully 100 percent renewable energy and at a time where everyone is becoming conscious of energy consumptions For physical infrastructure, and as you know, the passenger consume a lot of energy.
The combination of some natural cooling systems there plus what is more relevant, the fact that 100% of the energy used by this platform is renewable through hydro and solar panels Makes the profile of this provider extremely attractive to many of our clients Because the energy is auto produced. And as you know, all our clients have To be super focused on their own carbon footprint, which is mainly driven by their providers' carbon footprint. So I just want to emphasize this point as a differentiated factor for the new data center that will be located within the EU In Bergamo. 3rd point on what's next. Clearly, the core priority of Euronext for the next 18 months or so is to integrate bauxite andiana to extract The synergies in terms of cost and revenues to maximize cash flow generations and then to deleverage the group so that as quickly as possible The very significant cash flow generation of this group can be used for further expansion.
We believe that in the two areas That have been the 2 avenues of growth of Euronext, I. E, Expand the federal model by welcoming within Eurex other European platforms and the diversification of our top line into new Businesses and new asset classes, in those two areas, there are still opportunities. Clearly, we will be focusing more on larger opportunities than on the smaller ones we focused on 2016 2017. Clearly, the number of yields, the bigger you look at them is more discrete or finite than when you look That's much smaller, a universe of much smaller targets. But Euronext is going to grow.
We continue to grow significantly. Clearly, there are many things that will be easier for us when we are a company north to, let's say, approximately €800,000,000 of EBITDA. And we are going to continue growing. We have some ideas on what could be the opportunities for further growth, but we have To stay conscious and cautious about the fact that the top priority in order to create value for our shareholders is now to focus on Integration, extraction of synergies, both cost and revenue, maximization of free cash flow generation and then a Virgin Company, I don't think there is anything more important we can do to create value for shareholders than doing that for the next 18 months. But we are going to remain a growth project in many respects.
That's very helpful. Thanks, Stefan.
We have no further questions now. So I will hand back to Stefan Buschner for any closing remarks. Thank you.
Well, if there are no further questions, I thank you very much for your time. I wish you a good day. And