Unlocking Insights from ESEF Financial Data: Navigating Trends, Challenges, and Opportunities

An observatory of ESEF publications, brought to you by Corporatings

In today's digitally interconnected landscape, the apparition of the European Single Electronic Format (ESEF) is a revolution on the realm of corporate financial reporting. Ever since its implementation, a transformative evolution has been underway: all listed companies in Europe must now submit their annual reports in this digital format.

Amidst this changing landscape, this Corporatings study combines exclusive ESEF trends figures with expert testimonies to help you make sense of this new reporting reality.

Why This Guide Matters

How are European issuers handling this major paradigm shift? How does the digital format impact their financial communications? More importantly, how can companies and investors use ESEF reporting to gain a competitive edge?

Using our proprietary database, we have embarked on a comprehensive study encompassing the financial data of 2,364 European companies across 22 countries. Prepare to delve into the world of ESEF financial data and explore its publication trends, the challenges and opportunities inherent in this digital shift, and the obstacles that companies still grapple with.

Analyst Insights: A Paradigm Shift in Data Access

For financial experts, ESEF data has been a game-changer. "By facilitating access to issuer data, ESEF is already transforming the daily reality of professionals in the financial sector. Investors can now access a much larger quantity of information to make faster, better informed financial decisions", stresses Mathieu Caron, Head of Listing and Corporate Services at Euronext.

Financial analyst Boris Bourdet confirms: “Digital data stands as the sole viable alternative for analysts to access reliable, granular data while achieving significant productivity gains", thereby highlighting the pivotal role ESEF plays in increasing information accessibility from an investor's perspective.

Unveiling Anomalies: Focus on Scaling issues

Reporting issues can therefore have serious consequences for a company’s financial communications, since untrustworthy or non-comparable data will most likely lead investors to misunderstand the company's situation. The Corporatings Barometer provides an overview of anomalies encountered in ESEF disclosures, as well as areas for improvement with expert advice to help issuers and data users.

For instance, scale-related issues – such as mistakenly multiplying revenues by a thousand – increased from 2022 to 2023, appearing in 14.3% of the 2023 reports. Various other anomalies, such as sign issues, missing calculations or tagging inconsistencies, have posed significantchallenges for issuers these last few years.

Not only does the study offer an understandingof these anomalies, but it also showcases the transformative potential of ESEFin rectifying irregularities: using the right tools and with the right practices, ESEF data can be used to reinforce consistency from one year’s report to the next.

Corporatings’ Observatory: making the most of published data

Through data analysis and commentary by experts from key industry players such as Euronext and KPMG, Corporatings’ observatory paints the picture of a shifting landscape, where data quality remains a workin progress, but with highly promising signs for the future.

As Corporatings CEO Alexandre Prat-Fourcade puts it: "Although obstacles to optimal ESEF utilisation persist, there is a clear enhancement in data reliability when ESEF is embraced not merely asa regulatory mandate, but as an avenue for financial communication. It's heartening to witness data quality improve when ESEF is seen as an opportunity rather than a constraint." This study is an invitation to explore the new digital reality, where data isn’t just numbers but the gateway to insightful analysis and informed decision-making.

Join us in our journey through the world of ESEF financial data! Discover the complete observatory.