Deutsche Börse AG achieved its second strongest quarter ever in terms of sales revenue and EBITA in Q3/2008.
Sales revenue rose by 10 percent to €616.1 million (Q3/2007: €561.9 million), reflecting both stable revenue performance in the third 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 €55.7 million (Q3/2007: €59.2 million) in net interest income from banking business. Total costs amounted to €311.2 million in the third quarter, 13 percent up on the prior year (Q3/2007: €274.5 million) due to the consolidation of ISE. Excluding ISE, costs would have decreased 2 percent. EBITA in the third quarter increased by 5 percent to €385.0 million (Q3/2007: €368.3 million). The net financial result of the Group in the third quarter was negatively impacted by a currency effect of around €7 million related to the ISE financing. In total, the financing of ISE results in a positive currency effect of around €18 million in 2008. With the full redemption of the interim financing for ISE in July 2008, the target financing structure has been implemented. There will be no further currency effects affecting the income statement going forward. Based on the average number of 190.7 million shares outstanding, earnings per share in Q3/2008 rose by 10 percent to €1.35 (Q3/2007: €1.23 based on 194.1 million shares outstanding).
Dr. Reto Francioni, Chief Executive Officer of Deutsche Börse, said: "Our strong results for the third quarter 2008 are proof of the stability and sustainability of the business model of Deutsche Börse Group. By this means, Deutsche Börse can also contribute to the overall stability of the global financial markets infrastructure. Against this background, Deutsche Börse Group will continue to work intensively with all interested parties, including customers, central banks and regulators. It is essential to explore all possibilities to employ proven exchange technology and risk management tools also in other markets and asset classes."
Due to the excellent results in the first three quarters, Deutsche Börse achieved a new record result for the first nine months of 2008. Sales revenue increased by 12 percent to €1,846.1 million (Q1-3/2007: €1,647.5 million); an additional €179.2 million (Q1-3/2007: €167.3 million) was generated in the form of net interest income from the banking business. EBITA climbed by 20 percent to €1,185.9 million (Q1-3/2007: €990.4 million). Earnings per share (EPS) rose by 28 percent to total €4.23 (Q1-3/2007: €3.30).
Thomas Eichelmann, CFO of Deutsche Börse, commented, "Q3/2008 was our second strongest result ever despite weaker business activity in some areas of the Group during July and August. Based on the excellent development of our business in the first nine months, the strong volume development in October, paired with our strict cost management and the steps initiated to lower our effective Group tax rate, we are confident to achieve a new record result for the full year 2008. We will issue cost guidance for 2009 following the meeting of the Supervisory Board of Deutsche Börse AG in early December."
Sales revenue in the Xetra segment fell by 12 percent in the third quarter to €99.9 million (Q3/2007: €113.4 million), mainly owing to investor restraint in cash market trading due to uncertainty in the markets, in particular during the months of July and August. The trading volume on Xetra fell by 18 percent to €540.3 billion (Q3/2007: €602.2 billion), while the number of transactions rose by 15 percent to 55.8 million (Q3/2007: 48.7 million). The proportion of algorithmic trading on Xetra stood at 44 percent in the third quarter (Q3/2007:
42 percent). Floor trading volumes, excluding structured products, fell by 34 percent to €17.8 billion. Against the second quarter 2008, both Xetra and the Floor trading showed volume increases in Q3/2008. EBITA in the quarter displayed a drop of 27 percent to €56.7 million (Q3/2007: €77.8 million).
In the Eurex segment, sales revenue in the third quarter amounted to €257.5 million - a year-on-year increase of 36 percent (Q3/2007: €189.4 million). This rise was the result of the full consolidation of ISE. A total of 535.1 million contracts were traded on Eurex in the third quarter, a rise of 8 percent. 69 percent of these contracts were equity and index products and 31 percent interest rate products. A further 276.6 million contracts on US underlyings were traded on ISE, 29 percent more than in Q3/2007. EBITA displayed a rise of 21 percent to €153.0 million (Q3/2007: €126.4 million).
Total revenue in the Clearstream segment (including net interest income from banking business) declined by 3 percent to €244.9 million (Q3/2007: €252.2 million). The average value of securities held in custody increased year-on-year by 2 percent to €10.8 trillion (Q3/2007: €10.7 trillion). The number of settlement instructions saw a drop of 15 percent to 26.7 million primarily due to the decline in private investor activity (Q3/2007: 31.4 million). EBITA for this segment displayed a rise of 2 percent to €118.9 million in the third quarter (Q3/2007: €116.3 million).
Revenue development at Market Data & Analytics remained positive. Sales revenue increased by 9 percent to €46.1 million (Q3/2007: €42.3 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 30 percent to €30.5 million (Q3/2007: €23.5 million).
External sales revenue in the Information Technology segment fell by 2 percent to €23.4 million (Q3/2007: €23.8 million). The slight 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 7 percent to €31.9 million (Q3/2007: €29.7 million).