Deutsche Börse AG published its figures for the third quarter of 2015 on Wednesday. Net revenue of the Group increased by 20 per cent on the prior-year period to €594.4 million (Q3/2014: €495.6 million). This significant increase was driven primarily by persistently high equity market volatility, the positive development in custody and administration of securities, and the market data business. At €344.0 million in the reporting period, operating costs increased as planned year-on-year (Q3/2014: €274.0 million). This was mainly due to consolidation and exchange rate effects. Operating costs also included non-recurring items, which amounted to €31.2 million (Q3/2014: €8.0 million) and largely comprised costs of business combinations and efficiency programmes. Adjusted for these non-recurring factors, costs increased as planned to €312.8 million (Q3/2014: €266.0 million). Adjusted EBIT amounted to €283.1 million (Q3/2014: €233.2 million) and basic adjusted earnings per share were €1.03 (Q3/2014: €0.85).
In the first nine months of 2015, Deutsche Börse Group generated net revenue of €1,777.6 million, a year-on-year increase of 18 per cent (Q1–3/2014: €1,503.5 million). The Group’s adjusted operating costs rose as planned to €891.2 million in this period (Q1–3/2014: €758.7 million). As a result, adjusted EBIT amounted to €889.4 million (Q1–3/2014: €750.7 million) and adjusted basic earnings per share were €3.29 (Q1–3/2014: €2.75).
The Group completed the full acquisition of STOXX and the acquisition of 360T. To fund the two transactions, a hybrid bond with a principal amount of €600 million (term of 25.5 years; coupon of 2.75 per cent until February 2021), treasury shares amounting to €200 million and a bond with a principal amount of €500 million (term of 10 years; coupon of 1.625 per cent) were successfully placed in the market.
360T was included in Deutsche Börse AG’s consolidated financial statements effective since the beginning of October 2015. With no other changes in the projected costs the Group now expects operating costs, adjusted for non-recurring items, of €1,245 million for 2015 as a result of the consolidation of 360T. At the same time, the Group will generate additional net revenue of approximately €17 million until the end of the year.
Gregor Pottmeyer, Deutsche Börse AG’s CFO and Executive Board member for human resources, said: “In light of the continuing positive market environment, with double-digit growth rates in the trading business, as well as continuous growth at Clearstream and Market Data + Services, the Group is expecting net revenue at the upper end of the forecast range of €2.2 to €2.4 billion for full-year 2015. In addition, the Group has already made excellent progress with the implementation of the ‘Accelerate’ growth strategy announced at the end of July.”
Results for Q3/2015
Deutsche Börse Group’s net revenue increased by 20 per cent year-on-year to €594.4 million (Q3/2014: €495.6 million). The main drivers were increased stock market and interest rate volatility as well as the continuing positive development in custody and administration of securities (Clearstream) and the market data business (Market Data + Services). Net interest income from banking business, a component of net revenue, amounted to €13.9 million (Q3/2014: €9.3 million). In addition to income from the Clearstream segment, net interest income has also included interest income and expenses in the Eurex segment since the first quarter of 2015. This income is generated by the Group’s clearing houses from investing their clients’ cash collateral.
At €344.0 million in the reporting period, operating costs increased as planned year-on-year (Q3/2014: €274.0 million). In addition to the consolidation effects of €20.6 million, the increase is primarily attributable to higher personnel expenses of €18.4 million – mainly due to higher provisions for variable remuneration as well as costs in connection with the Stock Bonus Plan, which is linked to Deutsche Börse’s share price performance. There were also exchange rate effects of €6.2 million. Non-recurring items increased by €23.2 million year-on-year, mainly due to higher costs for business combinations as well as efficiency measures. Adjusted for these non-recurring factors, costs increased as planned by 18 per cent to €312.8 million (Q3/2014: €266.0 million).
The result from equity investments of €–0.7 million (Q3/2014: nil) was mainly due to an impairment loss on the shares of Bondcube Limited. The adjusted result from equity investments stood at €1.5 million (Q3/2014: €3.6 million).
Deutsche Börse Group’s earnings before interest and tax (EBIT) increased to €249.7 million in the reporting period (Q3/2014: €221.6 million). Excluding the non-recurring items mentioned above, the Group’s EBIT was €283.1 million, a rise of 21 per cent year-on-year (Q3/2014: €233.2 million).
The Group’s financial result was €–14.6 million (Q3/2014: €–13.7 million). The slight change is attributable to additional interest expense on the bond issued at the beginning of the third quarter of 2015 to fund the STOXX acquisition.
The adjusted effective Group tax rate for the third quarter of 2015 was 26.0 per cent, as planned (Q3/2014: 26.0 per cent). As a result, the Group’s consolidated net profit for the period amounted to €166.1 million (Q3/2014: €149.4 million). Excluding the non-recurring items mentioned above, consolidated net profit for the period totalled €191.4 million (Q3/2014: €155.9 million).
Basic earnings per share, based on a weighted average of 184.9 million shares, amounted to €0.90 (Q3/2014: €0.81). Adjusted for the non-recurring items mentioned above, basic earnings per share were €1.03, a 21 per cent increase year-on-year (Q3/2014: €0.85).
Further information: Attached, you will find the consolidated income statement and the segment reporting.
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