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According to the preliminary figures the sales revenues climbed by 18 percent to €2,185.2 million in 2007 (2006: €1,854.2 million). The company earned a further €230.8 million in net interest income from banking business (2006: €150.7 million). Costs of €1,323.5 million were 'in-line' with the company's guidance and include exceptional items such as provisions for the restructuring and efficiency program targeting €100 million in cost savings per annum as well as provisions for stock based compensation against the background of a 95 percent share price increase in 2007. EBITA (Earnings before interest, tax and goodwill impairment) increased 31 percent to €1,345.9 million (2006: €1,029.1 million) and includes a non-taxable book gain of some €120 million from the sale of property in Luxembourg in the fourth quarter. The net income for 2007 reached €911.7 million, as against €668.7 million in the previous year. Basic earnings per share, calculated on the basis of a weighted average number of 194.1 million shares outstanding, increased by 40 percent to €4.70 (2006: €3.36 on the basis of 198.9 million shares outstanding).
Based on the strong start to the current financial year and the cost guidance in place for 2008 the company reiterates its expectation to achieve a new record result in 2008. The Executive Board of Deutsche Börse AG proposes to increase the dividend from €1.70 to €2.10 per share. This would correspond to a dividend distribution ratio of 51 percent, adjusted to exclude the gain on the sale of property. Continuing past practice, Deutsche Börse aims for a full distribution of profits to shareholders in 2008 through dividends and share buybacks, subject to rating requirements and financing needs for investment projects. Furthermore, the company plans to cancel 5 million shares from the shares held in treasury prior to the Annual General Meeting in May 2008. This measure will reduce the number of shares in the company from 200 million to 195 million.
In addition, the Executive Board of Deutsche Börse AG has completed a review of potential options to further increase the financial flexibility of the Group. In its discussions with the rating agencies, the company identified several options that could enhance Deutsche Börse’s debt capacity by several hundred million euros, while maintaining Clearstream’s AA credit rating. The Executive Board will discuss these options with the Supervisory Board in its next meeting in March 2008.
