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.

Read this next

Retail FX

FF Simple and Smart Trades says Goodbye to CySEC authorization

The Cyprus Securities and Exchange Commission (CySEC) confirmed that it has wholly withdrawn the Cyprus Investment Firm (CIF) licenses of FF Simple and Smart Trades Investment Services Ltd.

Crypto Insider

Shining the Light in Crypto’s Dark Places

Something changed in regulators’ minds after the November crash of the FTX crypto exchange.

Executive Moves

Financial Commission Adds Sam Low to Dispute Resolution Committee

The Financial Commission (FinaCom PLC), a dispute resolution service that caters to the financial services industry, has appointed Sam Low as the newest member of its Dispute Resolution Committee (DRC).

Digital Assets, Uncategorized

De-facto owner of Bithumb exchange arrested in South Korea

South Korean prosecutors have arrested Kang Jong-Hyun, the anonymous chairman and owner of the country’s largest cryptocurrency exchange, Bithumb, on charges of embezzlement and stock manipulation.

Retail FX

Interactive Brokers volumes snap three-month losing streak

Electronic brokerage firm Interactive Brokers LLC (NASDAQ:IBKR) said its trading volumes rose in January, an indication that investor confidence in the financial markets is rebounding after having been fairly mixed over the past few months.

Digital Assets

VVF invests $5 million in Everscale, a potential Layer 2 solution for Venom blockchain

“For us, this is a strategic investment aimed at the technological development of projects and teams around technologies that we focus on and actively develop. In particular, we are talking about the Venom blockchain project and its ecosystem, which is planned to be launched soon and for which Everscale is a potential Layer 2 solution.”

Institutional FX

FXSpotStream volume ends string of declines on January rebound

Trading volumes on institutional FX platforms surged in January as traders increased their bets on central bankers’ policy with evidence mounting that inflation and economic growth are both losing momentum.

Industry News

DeFi firm Aurox launches SEC-compliant crowdfunding campaign on tZERO

“This is a great opportunity for us to raise capital from our community and the broader public on a leading fully regulated platform. We are confident that the tZERO Markets platform will provide us with the exposure and reach we need to attract a diverse investors to support our business growth.”

Industry News

Morgan Stanley launches ETF platform with six ESG-focused products by Calvert

“These new ETFs will resonate strongly with investors who seek competitive investment results while promoting positive change and supporting companies that are leaders in improving long-term shareholder value and societal outcomes.”