Deutsche Börse registers 10% rise in net profit in 2019

Maria Nikolova

The Exchange saw adjusted net profit rise 10% year on year in 2019, reaching €1.1 billion.

Deutsche Börse AG has published its preliminary results for the fourth quarter and the full year 2019, with the results revealing a rise in earnings in line with expectations.

The Group generated net revenue of €2,936.0 million in 2019, up 6% from the preceding year, with around 5% attributable to secular factors and 1% to consolidation effects. The cyclical environment was largely neutral in 2019.

At €1,129.5 million, operating costs were up 8% year-on-year, after adjusting the previous year’s figures for the impact of IFRS 16. The increase was largely due to higher levels of investment (especially for growth initiatives), as well as consolidation effects. Excluding consolidation effects, adjusted operating costs were up by 5%.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to €1,813.2 million.

In 2019, adjusted net profit attributable to Deutsche Börse shareholders increased by 10% to €1,105.6 million. Basic earnings per share, adjusted for non-recurring effects, rose by 11% from the year before to €6.03.

In the final quarter of 2019, Deutsche Börse Group’s adjusted EBITDA declined by 2%, to €410.5 million (Q4/2018: €419.9 million). Adjusted depreciation, amortisation and impairment losses totalled €61.7 million during the quarter (Q4/2018: €63.2 million).

In the fourth quarter of 2019, adjusted net profit attributable to Deutsche Börse AG shareholders amounted to €242.4 million, up 5% on the figure for the same quarter of the previous year (Q4/2018: €230.5 million). Basic earnings per share, adjusted for non-recurring effects, rose by 6% to €1.32.

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

Within the framework of implementing its “Roadmap 2020” growth strategy, Deutsche Börse Group plans a further increase in net revenue from secular growth opportunities of at least 5% in 2020, with adjusted 2020 net profit expected to rise to around €1.20 billion.

The Executive Board is proposing a 7% dividend increase for 2019, to €2.90 per share (2018: €2.70 per share). The dividend proposal requires formal approval by the Supervisory Board of Deutsche Börse AG (which has already expressed its support), and by Deutsche Börse AG’s shareholders at the Annual General Meeting on May 19, 2020.

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