Deutsche Börse achieves net profit growth of 6% for 2019

Deutsche Börse AG published its preliminary results for the fourth quarter and the full year 2019 on Monday.

The company reported the following results for the full year 2019:

  • Net revenue reached €2,936.0 million, marking a 6% increase since last year. Of those, 5% were attributed to secular factors and 1% to consolidation.
  • Operating costs were 8% up YoY which is largely due to higher levels of investment and consolidation.
  • Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) reached €1,813.2 million.
  • Adjusted net profit amount to €1,105.6 million, up by 10 %.
  • Basic earnings per share rose by 11 % and reached €6.03.

Deutsche Börse’s executive board has proposed a 7% dividend increase for 2019, to €2.90 per share (€2.70 per share for 2018). It’s equivalent ot48% distribution ratio of net profit and withing the range of the company’s dividend policy. The dividend proposal needs to be approved by the Supervisory Board and the company’s shareholders at the Annual General Meeting on 19 May 2020.

Deutsche Börse Group’s “Roadmap 2020” growth strategy intends a further increase in net revenue from secular growth of at least 5% for this year, with adjusted net profit expected to rise to around €1.20 billion in 2020.

Gregor Pottmeyer, Chief Financial Officer of Deutsche Börse AG, commented:

Gregor Pottmeyer

Gregor Pottmeyer

During the financial year under review, we achieved our targets of 5 per cent secular net revenue growth and a 10 per cent increase in adjusted net profit, as planned. Our shareholders will participate in this performance through a 7 per cent dividend increase, to €2.90 per share.

Theodor Weimer, Chief Executive Officer of Deutsche Börse AG, stated:

Following a strong previous year, we succeeded in achieving further very solid growth in 2019. Furthermore, the focus on external growth has come to fruition during 2019 – with the acquisitions of Axioma and UBS Fondcenter. We will continue to consistently pursue our strategy during the current financial year, anticipating adjusted net profit growth to around €1.20 billion.

The company’s net revenue of Q4 2019 amounted to €756.6 million, marking a 2% increase YoY (€740.4 million for Q4 in 2018). The main contributors to structural growth were Eurex (financial derivatives) and IFS (investment fund services) divisions.

Adjusted operating costs made 9% increase YoY and reached €347.4 million (€318.5 million for Q4 2018). Operating costs amounted €32.8 million (€140.4 million in Q4 2018), mainly made of costs for acquisitions and for measures to reduce structural costs introduced within the scope of “Roadmap 2020”.

EBITA decreased by 2% to €410.5 million (€419.9 million for Q4 2018). Adjusted depreciation, amortisation and impairment losses amounted to €61.7 million (€63.2 million for Q4 2018).

Deutsche Börse’s financial result in 2019 was €–8.4 million (€–28.4 million for Q4 2018). The YoY reduction was mostly attributed to lower provisions for interest on potential tax back-payments. The adjusted tax rate was 26% (27% for Q4 2018).

The adjusted net profit attributed to the shareholders reached €242.4 million for Q4 2019 (€230.5 million for Q4 2018). Basic earnings per share, adjusted for non-recurring effects, increased by 6% to €1.32.

The company reported a 17.75% increase of the cash markets turnover for January 2020 earlier this month.

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