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Deutsche Börse CEO Werner Seifert commented: "The results for the first quarter again underline the strength of our business strategy, the advantages of our business model, the skills and experience of our team and our strong competitive position."
Deutsche Börse also announced the full scope of its Capital Management Program outlining its capital management and distribution policy going forward. With this program, Deutsche Börse will distribute funds not required for the Group’s operating business to shareholders, subject to specific investment needs and capitalization requirements. In total, Deutsche Börse aims to distribute approximately 1.5 billion euros to shareholders by May 2007, including approximately 800 million euros in 2005.
The distribution of funds is anticipated to occur through an increase in the company’s dividend payout ratio to at least 50 percent complemented by an ongoing share buy back program. Under its current share repurchase program commenced on 13 April, Deutsche Börse has bought back 3.01 million shares or a total volume of 180.82 million euros, as of 28 April.
This program is the result of an intensive review, which considered the Group‘s capital needs from legal, regulatory, credit rating and economic capital perspectives. In particular, to ensure the continued success of its Eurex central counterparty and Clearstream custody businesses, which account for more than half of Group sales and operating cash flow, Deutsche Börse believes it is necessary that the Group maintains strong "AA" credit ratings. Deutsche Börse will continue to review its capital requirements as part of the company’s regular planning process.
Mathias Hlubek, Chief Financial Officer: "The first quarter was the Group’s strongest quarter ever: As the main contributor to this record result, Clearstream’s performance highlights the strengths of our integrated and scalable business model. In addition, our Capital Management Program underlines our commitment to deliver attractive returns for shareholders based on the continuing success of our business model."
Segment reporting shows Clearstream maintains its position as the strongest segment in terms of revenues. Revenues (sales revenue and net interest income from banking business) increased by eight percent to €178.0 million (Q1/ 2004: €164.6 million). Supported by lower costs, EBITA in the Clearstream segment rose by 33 percent to €61.7 million (Q1/2004: €46.4 million).
The Eurex segment achieved a new record in the first quarter with sales revenue of €125.5 million (Q1/2004: €106.9 million). This record was achieved thanks to an eight percent increase in trading volumes in the first quarter and a higher distribution of Eurex’s result to Deutsche Börse. From the beginning of 2005, Deutsche Börse’s economic share in Eurex increased to 85 percent from 80 percent. EBITA climbed by 28 percent to €68.9 million (Q1/2004: €53.8 million).
The Xetra segment contributed sales revenue of €59.1 million in the first quarter after €65.2 million in Q1/2004. This quarter was the third-best ever quarterly result for the segment. EBITA reached €27.0 million (Q1/2004: €33.8 million). The decline was attributable to the lower volume of trading on the pan-European trading platform Xetra and on the trading floor of the Frankfurt Stock Exchange (FWB).
The Market Data & Analytics segment continued to grow in the first quarter of this year as well, increasing sales revenue by 9 percent to €31.8 million (Q1/ 2004: €29.2 million). EBITA climbed by 6 percent to €11.0 million (Q1/2004: €10.4 million).
The Information Technology business segment generated external revenue of €31.0 million in the first quarter (Q1/2004: €31.8 million). EBITA reached €17.4 million following €18.8 million in the first quarter of last year. The modest decline in external revenue was due to a lower volume of contract notes in floor trading on German exchanges.
