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Deutsche Börse achieves 19 percent rise in earnings in Q2/2008
Deutsche Börse AG achieved new record second-quarter results in Q2/2008.Sales revenue rose by 8 percent to €585.5 million (Q2/2007: €542.5 million), reflecting both stable revenue performance in the second quarter in the Group's two largest business areas, Eurex and Clearstream, and the consolidation of the International Securities Exchange (ISE). The Company accrued a further €59.2 million (Q2/2007: €62.0 million) in net interest income from banking business.
Total costs amounted to €297.0 million in the second quarter, 5 percent down on the prior year (Q2/2007: €311.9 million) despite the consolidation of the ISE.Total costs include amortization of intangible assets of approximately €10 million in connection with ISE. EBITA in the second quarter increased by 17 percent to €375.1 million (Q2/2007: €321.8 million). Based on the average number of 192.1 million shares outstanding, earnings per share in Q2/2008 rose by 19 percent to €1.30 (Q2/2007: €1.09 based on 194.1 million shares outstanding).
Thomas Eichelmann, CFO of Deutsche Börse, said, "The results for the second quarter 2008 are further proof of the earnings power of Deutsche Börse Group.
Despite weaker business activity in some areas of the Group due to the general uncertainty in financial markets, we were able to increase our earnings in the second quarter also without the additional contribution of ISE. The record results for the first half of the year confirm our expectation for earnings growth in 2008 against the previous year."
Due to the excellent results in the first two quarters of 2008, the Company achieved a new record result for H1/2008. Sales revenue in the first six months of 2008 increased by 13 percent to €1,230.0 million (H1/2007: €1,085.6 million), with the Company accruing a further €123.5 million (H1/2007:€108.1 million) in net interest income from banking business. EBITA climbed by 29 percent to €800.9 million (H1/2007: €622.1 million). Earnings per share rose by 39 percent to €2.88 (H1/2007: €2.07).
The CEO of Deutsche Börse Group, Dr. Reto Francioni, commented on the mid-year figures: "Deutsche Börse Group continued to be well on track in the first half of 2008. We work efficiently and successfully in current unfavorable market conditions. Thus, we make an important contribution to stabilize the financial system."
Segment reporting Sales revenue in the Xetra segment fell by 14 percent in the second quarter to €91.2 million (Q2/2007: €105.5 million), mainly owing to investor restraint in cash market trading due to uncertainty in the markets. In particular the trading activity of private investors in floor trading was down considerably.
The trading volume on Xetra fell by 21 percent to €475.8 billion (Q2/2007:€602.2 billion), although the number of transactions actually rose by 15 percent to 46.6 million (Q2/2007: 40.5 million). The proportion of algorithmic trading on Xetra stood at 40 percent in the second quarter (Q2/2007: 39 percent). Floor trading volume fell by 41 percent to €16.2 billion. EBITA displayed a drop of 17 percent to €51.4 million (Q2/2007: €62.0 million).
In the Eurex segment, sales revenue in the second quarter amounted to €233.2 million - a year-on-year increase of 30 percent (Q2/2007: €179.3 million).
This rise was the result of the full consolidation of ISE. A total of 577 million contracts were traded on Eurex in the second quarter, a rise of 15 percent.72 percent of these contracts were equity and index products and 28 percent interest rate products. A further 245 million contracts on US underlyings were traded on the ISE, 34 percent more than in Q2/2007. EBITA displayed a rise of 30 percent to €138.9 million (Q2/2007: €106.7 million).
Total revenue in the Clearstream segment (including net interest income from banking business) declined by 1 percent to €250.8 million (Q2/2007: €253.0 million). The average value of securities held in custody increased year-on-year by 2 percent to €10.7 trillion (Q2/2007: €10.5 trillion). The number of settlement instructions saw a drop of 13 percent to 26.4 million primarily due to the decline in private investor activity (Q2/2007: 30.2 million). EBITA for this segment displayed a rise of 27 percent to €133.8 million in the second quarter (Q2/2007: €105.4 million).
Revenue development at Market Data & Analytics remained positive. Sales revenue increased by 12 percent to €45.7 million (Q2/2007: €40.7 million). The revenue rise is primarily attributable to new subscriptions for price and trading data for the cash and futures markets, as well as the growth in index products.
EBITA displayed a rise of 41 percent to €26.3 million (Q2/2007: €18.6 million).
External sales revenue in the Information Technology segment fell by 8 percent to €23.8 million (Q2/2007: €26.0 million). The decrease was mainly due to the lower volumes recorded on the trading platforms operated by the Information
Technology segment for external clients. EBITA displayed a year-on-year rise of 13 percent to €29.0 million (Q2/2007: €25.7 million).
H1/ 2007 Sales revenue1 (€m)
Consolidated net income for the period(€m)
Earnings per share(in €)
1) External sales revenue excluding net interest income from banking business
2) Includes ISE revenues of €53.3 million
3) Includes ISE costs of €34.1 million
4) Includes ISE EBITA of €20.4 million
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