Deutsche Börse increases revenue and earnings in Q2 2017

Deutsche Börse revenues

Deutsche Börse AG has published its results for the second quarter of 2017 on Wednesday.

Here are some of the highlights:

  • Q2/2017: net revenue amounted to €623.6 million (+4%), adjusted EBITDA to €379.5 million (+7%), and adjusted net income to €232.8 million (+7%)
  • H1/2017: net revenue of €1,247.0 million (+3%); adjusted EBITDA of €759.7 million (+6%) and adjusted net income of €465.0 million (+6%)
  • From the Group’s view it is still possible to achieve the lower end of its earnings guidance for 2017, subject to a positive development in the cyclical environment in H2/2017

Net revenue stood at €623.6 million, an increase of 4 per cent year-on-year (Q2/2016: €600.7 million). The increase was largely driven by positive developments in the Clearstream segment as well as the growth in interest rate derivatives trading volumes at Eurex. These positive developments largely offset the growth-hampering effects of an ongoing low volatility environment, which led to lower trading activities on the cash market and in equity and index derivatives at Eurex.

Adjusted operating costs were flat with €245.4 million (Q2/2016: €245.1 million) despite higher share-based compensation. Costs were adjusted for €26.0 million non-recurring effects mainly relating 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 profit for the period attributable to Deutsche Börse AG shareholders (hereinafter referred to as “net income”) stood at €232.8 million, rising by 7 per cent year-on-year (Q2/2016: €218.5 million). Net income was adjusted for non-recurring tax provisions of €33.0 million related to the settlement reached with the U.S. Office of Foreign Assets Control (OFAC) in 2013.

In the first half of 2017, Deutsche Börse achieved structural growth of around 5 per cent, in-line with its plan. However, this was off-set by a cyclical net decline and negative consolidation effects which amounted to 2 per cent in total. Therefore, net revenue in H1/2017 increased by 3 per cent and totalled €1,247.0 million (H1/2016: 1,211.2 million). Adjusted operating costs decreased slightly. Including depreciation, total costs increased slightly due to higher share-based compensation. Net income amounted to €465.0 million (+6%).

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

With our structural growth initiatives we have been progressing as planned in the first six months. However, we could not completely compensate for cyclical effects. Even though business development was slightly below our expectations, from our point of view it is still possible to achieve the lower end of our earnings forecast for the full year – provided that the cyclical environment improves in the second half of the year.

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