Deutsche Börse AG Publishes Results For Q2/2013 - Net Revenue Of €497.1 Million -Operating Costs Of €234.1 Million After Adjustments - Adjusted Earnings Per Share Of €0.97

Deutsche Börse AG published its figures for the second quarter of 2013 on Thursday. The Group generated net revenue of €497.1 million, up 3 per cent on the first quarter of 2013. The increase is attributable to a slight improvement in the business environment. However, net revenue was down slightly on the prior-year quarter (Q2/2012: €506.7 million) in light of the ongoing difficult capital market environment. The Group’s operating costs amounted to €234.1 million, adjusted for special items (Q2/2012: €224.0 million). The planned year-on-year increase in operating costs was attributable to higher investments in growth initiatives and infrastructure. Adjusted for special items, earnings per share amounted to €0.97 in the second quarter of 2013 (Q2/2012: €1.01).

With this, the Group generated net revenue of €981.4 million in the first half of 2013. Adjusted operating costs in the first half of 2013 amounted to €463.6 million. This resulted in an adjusted EBIT of €523.8 million and adjusted earnings per share of €1.89.

Gregor Pottmeyer, Deutsche Börse AG’s CFO and Executive Board member for human resources, said: “Deutsche Börse Group continued the positive trend seen in the first quarter and recorded a further sequential increase in net revenue and earnings. The efficiency measures announced in February 2013 are being implemented as planned. Hence, the company is well positioned to systematically drive forward the development of infrastructure and expansion into new growth areas.”

Results for Q2/2013
Deutsche Börse Group’s net revenue in the second quarter of 2013 improved compared with the first quarter; however, slower business activity in equity- and index-based derivatives in particular resulted in a decline of 2 per cent to €497.1 million (Q2/2012: €506.7 million) compared to the previous year. Net interest income from banking business, a component of net revenue, decreased to €11.2 million (Q2/2012: €13.6 million) due to continuing low interest rates.

Operating costs totalled €243.8 million in the reporting period, up on the previous year (Q2/2012: €228.9 million). However, this item included costs for efficiency programmes and for mergers and acquisitions of €9.7 million (Q2/2012: €4.9 million). Adjusted for these one-off effects, costs increased by 5 per cent to €234.1 million (Q2/2012: €224.0 million) as a result of higher investments, and were thus in line with the company’s planning.

The result from Deutsche Börse Group’s equity investments amounted to €3.0 million (Q2/2012: €1.0 million). It was generated primarily by European Energy Exchange AG, Scoach Holding S.A. and Direct Edge Holdings, LLC.

Overall, Deutsche Börse Group’s earnings before interest and tax (EBIT) declined to €256.3 million in the reporting period (Q2/2012: €278.8 million). Excluding the special items mentioned above, the Group's EBIT was €266.0 million (Q2/2012: €283.7 million).

The Group’s financial result for Q2/2013 was €–20.1 million, as against €–21.8 million in the second quarter of 2012. The decrease is mainly a result of the successfully completed refinancing of long term interest bearing liabilities in the second quarter.

The adjusted effective Group tax rate stood unchanged at 26.0 per cent in the second quarter of 2013 (Q2/2012: 26.0 per cent).

As a result, the Group’s consolidated net income for the period amounted to €171.0 million in the second quarter of 2013 (Q2/2012: €186.2 million). Excluding the special items mentioned above, consolidated net income totalled €178.2 million (Q2/2012: €189.8 million). Basic earnings per share were €0.93 based on 184.1 million shares outstanding (Q2/2012: €0.99 based on 188.6 million shares outstanding) and adjusted earnings per share were €0.97 (Q2/2012: €1.01).

Results for H1/2013
Aggregate net revenue for the first half of 2013 was €981.4 million (H1/2012: €1,013.6 million). Operating costs rose by 13 per cent compared with the first six months of 2012 to €539.1 million (H1/2012: €477.5 million). At €463.6 million, adjusted for the costs of efficiency programmes and for mergers and acquisitions, operating costs were up 3 per cent year-on-year (H1/2012: €449.7 million). EBIT in the first half of the year was down 17 per cent on the prior-year figure, at €448.3 million (H1/2012: €538.8 million). Excluding the special factors mentioned above, EBIT was €523.8 million (H1/2012: €566.6 million). Consolidated net income for the period was €292.2 million in the first half of 2013, as against €332.4 million in the comparable prior-year period. At €348.1 million, adjusted consolidated net income was down 8 per cent on the first half of 2012 (H1/2012: €380.4 million). Basic earnings per share amounted to €1.59 (H1/2012: €1.76). Adjusted for special factors EPS amounted to €1.89 – a decrease of 6 per cent compared with the prior-year period (H1/2012: €2.02).