ESCHBORN (dpa-AFX) - Deutsche Borse remains on record course thanks to an acquisition and good business in many of its divisions. In the first three months, earnings climbed by 16 percent to 1.43 billion euros, mainly thanks to an acquisition, the DAX-listed company announced in Eschborn on Tuesday. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 13 percent to 875 million euros. While the increase in income was as expected, the operating result clearly exceeded experts' expectations. Theodor Weimer, who is still CEO of the company, also confirmed the forecasts for the current year

In his last year at the helm of the company, he would like to continue the record run and increase earnings once again. For 2024, he is forecasting growth in net revenue to more than 5.6 billion euros and an increase in operating profit to more than 3.2 billion euros. This would mean an increase in revenue of at least ten percent and an increase in operating profit of around nine percent. Deutsche Borse should also continue to grow strongly in the medium term. The Management Board is aiming for double-digit growth in turnover and earnings every year up to and including 2026.

The company also decided on Weimer's successor at the beginning of March. On October 1, Stephan Leithner will become Co-CEO of Deutsche Borse. At the turn of the year, the 57-year-old will take over the sole management of the Frankfurt-based market operator for at least five years. Former Deutsche Bank manager Leithner, who has been a member of the Deutsche Borse Management Board since 2018, was also appointed Deputy Chairman of the Management Board at the beginning of March.

Since taking office at the beginning of 2018, Weimer has primarily expanded the data and software solutions business through acquisitions, among other things. The biggest coup was the record acquisition of Danish software provider Simcorp for 3.9 billion euros in fall 2023. The former HVB manager has thus further reduced the Borsen operator's dependence on fluctuations on the financial markets. Almost ten percentage points or two thirds of the 16 percent increase in revenue was attributable to Simcorp.

"The main drivers of the organic growth of 6 percent were the strong demand for electricity derivatives as well as additional business with new customers and contract extensions with existing customers in the Investment Management Solutions segment in the Software Solutions division," the press release stated. The high demand for repo products, which market participants can use to obtain short-term liquidity, and strong fund business also contributed to the positive development of net proceeds.

The rise in interest rates also continued to have a positive effect. This led to higher net interest income in the fund and securities custody business. On the other hand, the lower fluctuations on the stock market had a negative impact. All in all, profit only increased by five million euros to 498 million euros. The lower increase compared to the increase in operating profit is due to interest expenses for bonds in connection with the Simcorp takeover. The company also had to pay more taxes.

The result was initially received positively on the financial market. The share price rose by 0.7 percent to 189.65 euros on the Tradegate trading platform. After a brief period of weakness, the Deutsche Borse share is thus approaching the record high of 194.55 euros reached in February. The future CEO Leithner has big shoes to fill on the capital market. Since Weimer took office, the share price has almost doubled. Deutsche Borse currently has a market capitalization of almost 36 billion euros, making it more valuable than Deutsche Bank with 31 billion euros or Commerzbank, which currently has 17 billion euros./zb/he