Q3/2018: Deutsche Börse AG posts significant growth

Deutsche Börse AG published its results for the third quarter of 2018 on Monday. The company generated adjusted net revenue of €651.4 million, an increase of 13 per cent compared to the previous year (Q3/2017: €576.3 million). At €260.1 million (Q3/2017: €247.4 million), adjusted operating costs were up 5 per cent year-on-year. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) stood at €395.1 million, up 19 per cent on the previous year (Q3/2017: €333.1 million). Adjusted net profit for the period attributable to Deutsche Börse AG shareholders (hereinafter referred to as “net profit”) thus rose by 21 per cent, to €239.6 million (Q3/2017: €198.1 million). Basic earnings per share, adjusted for exceptional items, amounted to €1.30, up 23 per cent year-on-year (Q3/2017: €1.06).

Deutsche Börse AG generated adjusted net revenue of €2,030.0 million for the first nine months of 2018 (Q1–3/2017: €1,823.3 million) – an 11 per cent year-on-year increase. As part of that, the company achieved secular net revenue growth of approximately 7 per cent. In addition, cyclical effects such as increased volatility and higher interest rates in the US boosted net revenue, as did consolidation effects. Adjusted operating costs rose by 5 per cent year-on-year, as planned, to €777.5 million (Q1–3/2017: €737.9 million). The increase was primarily due to inflation effects, as well as to higher variable and share-based remuneration. This translated into Group EBITDA of €1,258.7 million (Q1–3/2017: €1,092.8 million) and net profit of €772.2 million (Q1–3/2017: €663.1 million). Both figures were up year-on-year, by 15 per cent and 16 per cent, respectively. Basic earnings per share, adjusted for exceptional items, amounted to €4.17 in the first nine months (Q1–3/2017: €3.55) – a 17 per cent increase.

Gregor Pottmeyer, Chief Financial Officer of Deutsche Börse AG, commented: “We maintained net revenue growth at double-digit rates during the third quarter, mainly driven by strong secular growth and positive cyclical effects. Adding the strong beginning of the fourth quarter, we are making very good progress towards meeting our full-year targets, and confirm our guidance for the full year.”

Results for Q3/2018

Net revenue for the third quarter of 2018 increased compared to the same quarter of the previous year, by 15 per cent to €660.7 million (Q3/2017: €576.3 million). All nine reporting segments recorded growth rates, some of them being significant. The highest growth rates were achieved in the EEX (commodities), 360T (foreign exchange), Data, IFS (investment fund services), Clearstream (post-trading) and Eurex (financial derivatives) segments. Growth rates in the 360T and Data segments benefited from the con¬solidation of the US foreign exchange trading platform GTX and the particularly low comparative figures for the previous year, respectively. Net revenue in the Clearstream segment includes €9.3 million in non-recurring income from insurance benefits. Adjusted consolidated net revenue totalled €651.4 million, up 13 per cent.

Net interest income from banking business posted another marked increase, to €48.6 million (Q3/2017: €32.1 million), largely attributable to the higher level of US interest rates, and to a fee adjustment for cash collateral management at Eurex, which was introduced with effect from 1 April 2018.

At €289.1 million, operating costs were higher than in the previous year (Q3/2017: €263.3 million); the figure included exceptional items in the amount of €29.0 million (Q3/2017: €15.9 million). Exceptional items mainly comprised costs for the restructur-ing announced within the framework of the “Roadmap 2020” strategy programme, and for litigations. Adjusted for these exceptional items, operating costs increased by 5 per cent, to €260.1 million (Q3/2017: €247.4 million). The result from equity investments amounted to €3.8 million (Q3/2017: €4.2 million).

Deutsche Börse Group’s EBITDA was €375.4 million for the quarter under review (Q3/2017: €317.2 million). Excluding the exceptional items set out above, consolidated EBITDA amounted to €395.1 million (Q3/2017: €333.1 million). Depreciation, amortisation and impairment losses amounted to €44.1 million (Q3/2017: €43.8 million). The Group’s financial result was €–15.1 million (Q3/2017: €–19.1 million). The adjusted effective Group tax rate of 27.0 per cent was in line with expectations. Accordingly, net profit stood at €225.0 million (Q3/2017: €204.3 million); excluding the exceptional items set out above, it was €239.6 million (Q3/2017: €198.1 million). Basic earnings per share amounted to €1.22 (Q3/2017: €1.09). Adjusted for exceptional items, basic earnings per share stood at €1.30 (Q3/2017: €1.06).

Further information:

Please find attached our consolidated income statement and segment reporting for the third quarter and the first nine months of 2018. For further details, please refer to the quarterly statement for Q3/2018.