DEUTSCHE BÖRSE AG Publication of results
Q1/2024: Deutsche Börse Group starts the financial year 2024 as planned with further considerable growth
Overview of quarterly results | Comparability of figures |
- Net revenue rose in the first quarter of 2024 by 16 per cent to €1,427.3 million and EBITDA by 13 per cent to €875.3 million.
- The strong increase in net revenue is due to organic growth of 6 per cent, as well as the contribution from SimCorp of 10 per cent.
- Net profit for the period attributable to Deutsche Börse AG shareholders came to €497.6 million and earnings per share before purchase price allocations rose by 7 per cent to €2.89.
- Due to the performance in the first quarter of 2024 and the outlook for the remainder of the year, we confirm our guidance for 2024.
Overview of material events
-
On 8 March 2024, theSupervisory Board of Deutsche Börse AG appointed Stephan Leithner as CEO of Deutsche Börse AGfor a period of five years effective 1 October 2024. Theodor Weimer and Stephan Leithner will lead together as Co-CEOsin the period from 1 October 2024 until
31 December 2024. - Thesharebuy-backprogramme announced by Deutsche Börse AG in an ad hoc statement on 6 November 2023began on 2 January 2024. By
31 March 2024, a total of 1,547,967 shares had been bought back for some €289 million.
Deutsche Börse Group slightly modified the allocation of net revenue within its segment reporting with effect from the first quarter of 2024.
- In the Trading & Clearing segment, Financial Derivatives unit, net revenue from interest rate derivatives, OTC clearing and the repo business, which was previously reported under "Other" are now reported collectively under the heading of "Fixed Income".
- In addition, in the Financial Derivatives unit, Margin fees, which were previously reported separately, will henceforth be allocated to "Equities" and "Fixed Income" according to the economic affiliation.
- In the Fund Services segment, the net interest income is now presented separately and no longer under the heading "Other".
- Because the expertise in digital assets is pooled in the Trading & Clearing segment, the activities from Crypto Finance and Deutsche Börse Digital Exchange (DBDX), which was previously reported under "Cash Equities", is now shown in the FX & Digital Assets unit.
Results of operations
Market participants focused on the central banks and their monetary policy in the first quarter of 2024. Both the Federal Reserve and the ECB kept rates at their current level and would not be drawn on the timing of the first interest rate cut. Average interest rates were higher than in the same quarter of the previous year, so net interest income went up significantly, despite slightly
Deutsche Börse Group - Quarterly statement Q1/2024 | 1 |
Publication of results
lower cash balances. At the same time, persistently high interest rates resulted in a need for refinancing solutions and so to strong demand for repo products. Trading in interest rate derivatives received a boost, as market expectations of possible interest rate cuts were postponed due to still high inflation rates and solid economic growth. Stock market volatility was significantly below the same quarter of the previous year. The trading volume of equity index derivatives returned to its long-term average as a result, after the insolvency of some US banks and consolidation on the Swiss banking market in March 2023 had caused a brief rise in hedging requirements and so particularly high trading volumes. In addition, lower power prices and gains in market share by EEX resulted in new record trading volumes for power derivatives.
Against this backdrop, net revenue in the first quarter of 2024 rose by 16 per cent to €1,427.3 million (Q1/23: €1,231.2 million). About 10 per cent of the growth is due to the consolidation of SimCorp. Main drivers of the 6 per cent organic growth were the strong demand for power derivatives in the Commodities unit, as well as additional business with new customers and contract renewals with existing customers in the Software Solutions unit of the Investment Management Solutions segment. High demand for repo products in the Trading & Clearing segment in the Financial Derivatives unit and strong funds business also contributed to the good net revenue performance.
Higher net interest income in Fund Services and Securities Services segments offset the decline in revenue due to lower volatility on equity markets.
Operating costs went up 25 per cent in the first quarter to €564.5 million (Q1/23: €452.7 million). The increase is largely attributed to the effects of consolidating SimCorp. From an organic perspective, costs were up by around 4 per cent, whereby lower share-based payments offset increases due to costs to achieve synergies, inflation and investments.
This boosted earnings before interest, tax, depreciation and amortisation (EBITDA) by 13 per cent to €875.3 million (Q1/23: €772.1 million).
This includes the result from financial investments of €12.5 million (Q1/23: €-6.4 million), which benefited from the positive performance of various minority investments.
Amortisation and depreciation came to €117.5 million (Q1/23: €88.3 million). The increase is largely due to the consolidation of SimCorp and the purchase price allocation for the transaction.
The financial result of €-42.1 million (Q1/23: €-9.1 million) was driven mainly by interest expenses on the bonds issued to finance the SimCorp acquisition.
Net profit attributable to Deutsche Börse AG shareholders for the first quarter of 2024 was therefore €497.6 million (Q1/23: €473.3 million), which represents an increase of 5 per cent over the same quarter of the previous year. Earnings per share came to €2.70 (Q1/23: €2.58) for an average of 184.2 million shares. Earnings per share before purchase price allocations (cash EPS) were €2.89 (Q1/23: €2.70), an increase of 7 per cent.
Gregor Pottmeyer, CFO of Deutsche Börse AG, commented on the results as follows: "We once again significantly increased our net revenue in the first quarter. Our diversified business model has enabled us to achieve further secular growth, and we saw the additional revenue contribution from SimCorp. We have also made substantial progress in combining the business units in the new Investment Management Solutions segment and realising synergies. In doing so, we have created an important basis for achieving our financial targets in the current year and beyond."
Deutsche Börse Group - Quarterly statement Q1/2024 | 2 |
Publication of results
Risk report
On pages 64 to 82 of its Annual Report 2023, Deutsche Börse Group comprehensively outlines the framework, strategy, principles, organisation, processes, methods and concepts behind its risk management, as well as the measures it implements to manage or reduce risks. A detailed description of the status of current litigation can be found inthe Annual Report 2023 on pages 223 to 226.
In view of Russia's ongoing war of aggression against Ukraine, the measures taken and the implementation of sanctions remain in place. The Group continues to manage this risk actively by means of constant monitoring and awareness training.
In terms of the Middle East conflict that broke out in October 2023, an analysis carried out across the Group did not identify any material effects on the overall risk profile.
There was no material change in the Group's risk position concerning legal disputes in the first quarter of 2024.
Report on expected developments
Given the performance in the first quarter of 2024 and the outlook for the remainder of the year, we confirm our guidance for 2024 as presented on pages 88 to 90 of the Annual Report 2023.
Report on post-balance sheet date events
The share buy-back programme announced by Deutsche Börse AG with a volume of €300 million was completed as planned on 19 April 2024.
Deutsche Börse Group - Quarterly statement Q1/2024 | 3 |
Publication of results
Consolidated income statement
01.01. - 31.03.
01.01. - 31.03.
in €m
Sales revenue
Treasury result from banking and similar business
Other operating income
Total revenue
Volume-related costs
Net revenue (total revenue less volume-related costs)
Staff costs
Other operating expenses
Operating costs
Result from financial investments
Earnings before interest, tax, depreciation and amortisation (EBITDA)
Depreciation, amortisation and impairment losses
Earnings before interest and tax (EBIT)
2024 |
1,454.9
261.5
9.0
1,725.4
- 298.1
1,427.3
- 395.8
- 168.7
- 564.5
12.5
875.3
- 117.5
757.8
2023 in €m
1,250.0 Earnings before interest and tax (EBIT)
226.9 Financial result
4.5 Earnings before tax (EBT)
1,481.4
Income tax expense
- 250.2 Net profit for the period
1,231.2 | Net profit for the period attributable to | |
Deutsche Börse AG shareholders | ||
Net profit for the period attributable to | ||
- 317.1 | ||
non-controlling interests | ||
- 135.6 | ||
- 452.7 |
Earnings per share (basic) (€) | ||
Earnings per share before purchase price allocations | ||
- 6.4 | ||
(Cash EPS) (€) | ||
772.1 | ||
- 88.3 | ||
683.8 | ||
20242023
757.8 683.8
- 42.1 | - 9.1 | |
715.7 674.7
- 191.7 | - 181.4 |
524.0 | 493.3 |
497.6 | 473.3 |
26.4 | 20.0 |
2.70 | 2.58 |
2.89 | 2.70 |
Deutsche Börse Group - Quarterly statement Q1/2024 | 4 |
Publication of results
Segment reporting | ||
Key indicators Investment Management Solutions segment | ||
01.01. - 31.03. | ||
in €m | 2024 | 2023 |
Net revenue | 300.0 | 156.7 | ||
Software Solutions | 161.4 | 19.9 | ||
On-premises | 70.4 | 0.0 | ||
SaaS (incl. Analytics) | 52.7 | 19.9 | ||
Other | 38.3 | 0.0 | ||
ESG & Index | 138.6 | 136.8 | ||
ESG | 59.8 | 56.9 | ||
Index | 51.5 | 50.5 | ||
Other | 27.3 | 29.4 | ||
Operating costs | - 200.7 | - 103.8 | ||
EBITDA | 106.1 | 52.7 | ||
Deutsche Börse Group - Quarterly statement Q1/2024
Key indicators Trading & Clearing segment | |||||||||
01.01. - 31.03. | |||||||||
Change | in €m | 2024 | 2023 | Change | |||||
91 % | Net revenue | 603.9 | 607.8 | - 1 % | |||||
711 % | Financial Derivatives | 330.7 | 357.6 | - 8 % | |||||
n.a. | Equities | 131.4 | 165.8 | - 21 % | |||||
165 % | Fixed Income | 142.6 | 142.6 | 0 % | |||||
n.a. | Other | 56.7 | 49.2 | 15 % | |||||
1 % | Commodities | 162.7 | 138.0 | 18 % | |||||
5 % | Power | 80.1 | 57.5 | 39 % | |||||
2 % | Gas | 25.4 | 27.1 | - 6 % | |||||
- 7 % | Other | 57.2 | 53.4 | 7 % | |||||
93 % | Cash Equities | 71.9 | 76.3 | - 6 % | |||||
101 % | Trading | 34.2 | 36.5 | - 6 % | |||||
Other | 37.7 | 39.8 | - 5 % | ||||||
FX & Digital Assets | 38.6 | 35.9 | 8 % | ||||||
Operating costs | - 219.5 | - 208.8 | 5 % | ||||||
EBITDA | 390.0 | 394.1 | - 1 % | ||||||
5
Publication of results
Key indicators Fund Services segment | ||
01.01. - 31.03. | ||
in €m | 2024 | 2023 |
Net revenue | 117.6 | 106.1 | ||
Fund Processing | 60.2 | 51.6 | ||
Fund Distribution | 21.1 | 21.4 | ||
Net interest income from banking business | 16.3 | 11.2 | ||
Other | 20.0 | 21.9 | ||
Operating costs | - 48.4 | - 46.3 | ||
EBITDA | 69.2 | 59.3 | ||
Key indicators Securities Services segment | |||||||||
01.01. - 31.03. | |||||||||
Change | in €m | 2024 | 2023 | Change | |||||
11 % | Net revenue | 405.8 | 360.6 | 13 % | |||||
17 % | Custody | 161.0 | 154.5 | 4 % | |||||
- 1 % | Settlement | 32.8 | 29.4 | 12 % | |||||
46 % | Net interest income from banking business | 176.1 | 140.8 | 25 % | |||||
- 9 % | Other | 35.9 | 35.9 | 0 % | |||||
5 % | Operating costs | - 95.9 | - 93.8 | 2 % | |||||
17 % | EBITDA | 310.0 | 266.0 | 17 % | |||||
Deutsche Börse Group - Quarterly statement Q1/2024 | 6 |
Publication of results
Consolidated balance sheet
Consolidated balance sheet (extract) | Consolidated balance sheet (extract) | |||||||
in €m | 31 Mar 2024 | 31 Dec 2023 | in €m | |||||
ASSETS | 287,718.1 | 237,726.9 | EQUITY AND LIABILITIES | |||||
NON-CURRENT ASSETS | 25,485.4 | 23,416.7 | EQUITY | |||||
Intangible assets | 12,506.5 | 12,478.6 | Shareholders' equity | |||||
Property, plant and equipment | 579.0 | 605.6 | Non-controlling interests | |||||
Financial instruments held by central counterparties | 9,882.4 | 7,667.6 | ||||||
Other non-current assets | 2,517.5 | 2,664.9 | NON-CURRENT LIABILITIES | |||||
Financial instruments held by central counterparties | ||||||||
CURRENT ASSETS | 262,232.7 | 214,310.2 | Other non-current liabilities | |||||
Restricted bank balances | 56,919.8 | 53,669.4 | ||||||
Financial instruments held by central counterparties | 176,468.3 | 137,904.9 | CURRENT LIABILITIES | |||||
Other current assets | 28,844.6 | 22,735.9 | Cash deposits by market participants | |||||
Financial instruments held by central counterparties | ||||||||
Other current liabilities | ||||||||
31 Mar 2024 | 31 Dec 2023 |
287,718.1 | 237,726.9 |
10,321.7 | 10,100.2 |
9,856.0 | 9,661.5 |
465.7 | 438.7 |
18,371.5 | 16,206.7 |
9,882.4 | 7,667.6 |
8,489.1 | 8,539.1 |
259,024.9 | 211,420.1 |
56,651.1 | 53,401.3 |
176,272.3 | 137,341.9 |
26,101.5 | 20,676.9 |
Deutsche Börse Group - Quarterly statement Q1/2024 | 7 |
Publication of results
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Publication date 23 April 2024
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Cautionary note with regard to forward-lookingstatements: This document contains forward-looking statements and statements of future expectations that reflect management's current views and assumptions with respect to future events. Such statements are subject to known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied and that are beyond Deutsche Börse AG's ability to control or estimate precisely. In addition to statements which are forward-looking by reason of context, the words 'may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, potential, or continue' and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those statements due to, without limitation, (i) general economic conditions, (ii) future performance of financial markets, (iii) interest rate levels (iv) currency exchange rates (v) the behaviour of other market participants (vi) general competitive factors (vii) changes in laws and regulations (viii) changes in the policies of central banks, governmental regulators and/or (foreign) governments (ix) the ability to successfully integrate acquired and merged businesses and achieve anticipated synergies (x) reorganization measures, in each case on a local, national, regional and/or global basis. Deutsche Börse AG does not assume any obligation and does not intend to update any forward-looking statements to reflect events or circumstances after the date of these materials.
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All descriptions, examples and calculations contained in this document are for illustrative purposes only.
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Deutsche Börse Group - Quarterly statement Q1/2024 | 8 |
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Deutsche Börse AG published this content on 23 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 April 2024 17:01:11 UTC.
