Deutsche Börse is not growing so fast

FRANKFURT (dpa-AFX) – Deutsche Börse continued to benefit from strong trading in financial markets and heightened uncertainty resulting from the corona pandemic. Sales and operating profit rose again in the second quarter, but the high growth rate at the start of the year could not be sustained. In the three months preceding the end of June, turnover increased by 7% to 777.5 million euros, as announced by the group on Wednesday evening. Adjusted for special effects, earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 4% to 483 million euros. The group therefore behaved much as the experts had expected. It wasn’t enough on the stock market – the stock price fell.

This was not changed by the confirmed forecast, although it is often appreciated by investors, especially in times of crisis. Thus, profit adjusted for special effects for the current year should increase by 8% compared to the previous year to reach 1.2 billion euros. Profits must grow structurally – that is, without special effects such as favorable market conditions or buyouts – by 5%. The forecast is based on the assumption that higher-than-expected volatility-related activity in the first quarter will be more than offset by declines in particular areas, such as net interest income in the Clearstream segment, as and when as the year progresses.

The stock, in high demand for weeks and months, fell in the afternoon by around 5% to 157.10 euros, making it one of the lowest values ​​on the index. EuroStoxx 50 selection. . Last week, the newspaper reached the highest level in its almost 20-year history on the stock market at 170.15 euros. Due to the good corona-related business, Deutsche Börse shares have been skyrocketing for quite some time – since the start of the year, the share has risen just over ten percent and so is the one of the strongest standard values ​​in Germany and Europe.

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Since CEO Theodor Weimer took office in early 2018, the increase has been over 60%. The manager wishes to make the group less dependent on strong fluctuations in the stock markets and therefore, among other things, to develop the activity with foreign exchange transactions or data services. He insists again and again that size is very important to the success of exchange traders. At the same time, however, it slows down expectations of major buyouts or mergers. These are not on the agenda. There was no news regarding the presentation of quarterly figures.

Investors like to hear that after all, all large-scale merger attempts like the London Stock Exchange have so far failed. There is no need to fundamentally change direction or change things. On the contrary, autonomous growth remains a priority. The most important division is and remains the Eurex derivatives exchange, where investors can hedge against price fluctuations in financial markets around the world. In the second quarter, revenue increased 6% to just under 272 million euros and profit adjusted for special effects increased 4% to 192 million euros.

In the Xetra segment, which trades in shares, among others, Deutsche Börse achieved a turnover of 94 million euros in the last quarter, 19% more than the previous year. The division’s operating profit increased by a quarter to 60 million euros. In the end, Group-wide profit fell 4% to 257 million euros. The slightly higher impairments are mainly due to the Qontigo segment, the index division of the company. Deutsche Börse only strengthened this activity in 2019 with the acquisition of Axioma.

CFO Gregor Pottmeyer was happy with the result. “Even in an environment characterized by mild cyclical headwinds in the second quarter, we were once again able to achieve our planned and structurally determined net sales growth,” he said. “In order to continue to grow on our own in the future, we continue to invest more in organic growth, new technologies and regulatory requirements.” During an investor day on November 18, he wanted to announce how Weimer imagines the medium-term future of Deutsche Börse. This was actually scheduled for May, but then had to be postponed due to the corona pandemic.

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