Deutsche Börse Group sees 9% growth in net revenue

Publishing its financial report for the quarter and full year of 2020, Deutsche Börse Group has revealed its net revenue grew by 9% to €3,213.8 million. Five per cent of the growth was said to have resulted from secular growth as forecast. Highlights included an increase in earnings before tax, depreciation and amortisation from €1,678.3 million in 2019, to €1,877.3 million in 2020.

It should be noted that the exceptionally precarious market environment of last year influenced the findings of the financial report, the unfolding of the COVID-19 pandemic having a significant impact on segment earnings. As such, Deutsche Börse saw an increase in earnings in the first quarter of 2020 while markets became more and more subdued as the pandemic persisted, and interest rates fell to unprecedented lows worldwide.

Results from strategic investments rose considerably to €24.3 million (2019: €6.7 million). An increase said to have stemmed largely from a mark-up in the equity method valuation of Tradegate AG Wertpapierhandelsbank (Xetra segment), which documented a solid performance in the reporting year. The report also found that net profit for the period attributable to Deutsche Börse Group shareholders increased by 9%, rising to €1,204.3 million, reaching company guidance of €1.20 billion. The figure was reached after adjustments for exceptional terms.

Deutsche Börse

Deutsche Börse AG’s Executive Board proposes an increase of the dividend for 2020 to €3.00 per share, compared to 2019’s €2.90 per share. These rates remain within the range set by Deutsche Börse Group’s dividend policy as they are equivalent to a distribution ratio of 46% of the adjusted net profit.

In line with its new mid-term plan, Compass 2023, Deutsche Börse Group expects secular net revenue growth of five per cent for 2021. Cyclical net revenue is likely to decline in the current year due to the exceptionally high volatility and the US interest rate cuts in the first quarter of 2020.  Nevertheless, Deutsche Börse expects in 2021 that net revenue will rise to around €3.5 billion, alongside an increase of EBITDA (reported) to about €2.0 billion.

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

Theodor Weimer, Deutsche Börse AG

Theodor Weimer

During a very difficult year 2020, for the world as well as for everyone individually, always overshadowed by COVID-19, Deutsche Börse reliably delivered strong results. We want to continue growing organically as well as inorganically, but not at the expense of our high profitability.

Earlier in February Deutsche Börse announced that its General Counsel since 2018, Michael Lappe, will leave the company on 30 July and that Bettina Kramer-Braun is going to take his place.

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