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Screenshot of a breaking news alert e-mail from Q2 2017
Deutsche Börse AG published its results for the third quarter of 2017 on Thursday, indicating that:
- Net revenue of €576 million (+3%)
- Adjusted EBITDA of €333 million (+5%)
- Adjusted net income for the period at €198 million (+4%)
Carsten Kengeter has informed earlier the Supervisory Board of Deutsche Börse AG (DBAG) that he would like to step down as Chief Executive Officer of DBAG effective 31 December 2017.
The company generated net revenue of €576.3 million, an increase of 3 per cent compared to the previous year (Q3/2016: €558.5 million). The increase was largely driven by positive developments in the Clearstream segment, as well as by growth generated in the index business of the Market Data + Services segment.
Against this background, the weak index derivatives business caused by low equity market volatility was more than offset. Adjusted operating costs of €247.4 million were only slightly higher year-on-year (Q3/2016: €244.8 million), largely due to ongoing enhancements of operating efficiency. Costs were adjusted for €15.9 million in non-recurring expenses, mainly related to M&A and restructuring expenses as well as provisions for litigations.
Depreciation, amortisation and impairment losses increased due to higher investments in future growth. Adjusted net income for the period attributable to Deutsche Börse AG shareholders (referred to below as net income for the period) stood at €198.1 million, rising by 4 per cent year-on-year (Q3/2016: €190.7 million).
Net income for the period was adjusted for non-recurring tax income of €18.0 million related to Group-internal restructuring measures. Basic earnings per share, adjusted for non-recurring effects, amounted to €1.06 (Q3/2016: €1.02).
During the first nine months of 2017, Deutsche Börse Group achieved secular net revenue growth of 5 per cent, in line with expectations. However, this was offset by a cyclical net decline and negative consolidation effects which amounted to 2 percentage points in total. Therefore, net revenue increased by 3 per cent and totalled €1,823.3 million (Q1–3/2016: 1,769.7 million). Adjusted net income rose by 5 per cent, to €663.1 million (Q1–3/2016: €630.5 million).
Gregor Pottmeyer, Chief Financial Officer of Deutsche Börse AG, commented:
Our secular growth initiatives are well on track. However, due to prevailing negative cyclical effects, we will very likely not be able to fully meet our targets for the financial year 2017. Nonetheless, the Group remains very well positioned to benefit from secular and cyclical growth over the medium term. Deutsche Börse Group therefore affirms its forecast for annual earnings growth of between 10 per cent and 15 per cent for 2018 and 2019.
The full quarterly statement can be seen here.