Deutsche Börse claims 'stable' Q2

Deutsche Börse AG published its figures for the second quarter of 2012 on Thursday. The Company's sales revenue rose to €555.0 million.

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This corresponds to a 5 percent increase compared with the second quarter of 2011 (€528.6 million), now that 100 percent of Eurex's sales revenue is attributable to Deutsche Börse following its full acquisition. Despite an overall weak financial market environment, the Company's net revenue remained stable at €506.7 million. This is mainly the result of the considerable increase of trading volumes in index derivative products as well as the Eurex acquisition. The Group's operating costs declined by 2 percent year-on-year to €228.9 million and include exceptional items of around €5 million mainly for efficiency measures. Adjusted for special factors, earnings per share amounted to €1.01 in the second quarter of 2012.

In a comparison of the half-yearly figures, net revenue declined slightly from €1,032.7 million in the prior-year period to €1,013.6 million as a result of the challenging market environment. Adjusted operating costs in the first half of 2012 amounted to €449.7 million, an 8 percent increase year-on-year, mainly as a result of the investments in growth initiatives as part of the Group's strategic positioning. This resulted in an adjusted EBIT of €566.6 million and adjusted earnings per share of €2.02.

Gregor Pottmeyer, Deutsche Börse AG's CFO and Executive Board member for human resources: "Despite the weak capital market environment in the first half of the year, Deutsche Börse AG once again recorded stable results thanks to its diversified business model. A major contributing factor was the full acquisition of Eurex, which has proved to be a strategically sound step. However, it will be increasingly challenging to generate growth in the current fiscal year because of the weaker market environment and the ongoing uncertainty amongst market participants." 

Results for Q2/2012

Deutsche Börse Group's net revenue in the second quarter of 2012 remained stable at €506.7 million, compared with €506.4 million in the second quarter of 2011. Net interest income from banking business amounted to €13.6 million (Q2/2011: €18.5 million). This decline as against the previous year is due to lower interest rate levels.

Operating costs were €228.9 million, a 2 percent decrease on the previous year (Q2/2011: €233.1 million), and contain costs of €4.8 million for efficiency programmes (Q2/2011: €-2.6 million) and costs of €0.1 million (Q2/2011: €18.8 million) relating to the prohibited merger with NYSE Euronext.

At €1.0 million, the result from equity investments was down on the prior-year figure (€5.7 million). It is attributable primarily to Scoach Holding S.A., Direct Edge Holdings, LLC and European Energy Exchange AG. As a result, Deutsche Börse Group generated earnings before interest and taxes (EBIT) of €278.8 million (Q2/2011: €279.0 million). The additional EBIT due to the Eurex acquisition amounted to €21.8 million. Adjusted for exceptional items, EBIT amounted to €283.7 million in the second quarter of 2012 (Q2/2011: €295.2 million).

The financial result for the second quarter of 2012 amounted to €-21.8 million (Q2/2011: €-17.4 million). This mainly reflects interest payments on outstanding bonds.

Non-controlling interests in net income for the period - which indicate the share of the profit or loss of subsidiaries attributable to minority shareholders - amounted to €4.0 million for the quarter (Q2/2011: €5.5 million). Consolidated net income for the second quarter of 2012 was €186.2 million, compared to €180.5 million in the second quarter of 2011. Basic earnings per share, based on a weighted average of 188.6 million shares outstanding, were €0.99 (Q2/2011: €0.97 for 186.0 million shares outstanding). Adjusted for exceptional items, consolidated net income for the period amounted to €189.8 million (Q2/2011: €200.0 million) and earnings per share were €1.01 in the second quarter of 2012 (Q2/2011: €1.08).

Results for H1/2012

Consolidated net revenue for the first six months of 2012 was €1,013.6 million (H1/2011: €1,032.7 million). Operating costs amounted to €477.5 million (H1/2011: €444.9 million, up 7 percent). Adjusted for restructuring expenses and costs related to the proposed business combination with NYSE Euronext, total costs were up 8 percent year-on-year to €449.7 million (H1/2011: €415.1 million). In the first half of the year, EBIT was €538.8 million (H1/2011: €598.1 million, down 10 percent). Consolidated net income for the period amounted to €332.4 million in the first half of 2012, as against €394.6 million in the prior-year period, a decline of 16 percent. Basic earnings per share amounted to €1.76 (H1/2011: €2.12, down 17 percent). 

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