Deutsche Börse AG published its preliminary figures for the fourth quarter and the financial year 2012 on Tuesday. Net revenue declined by 9 per cent in financial year 2012 to €1,932.3 million (2011: €2,121.4 million) due to the challenging market environment.
As a result of historically low key interest rates, net interest income from the banking business decreased to €52.0 million (2011: €75.1 million), in spite of higher average customer cash deposits.
Operating costs were down slightly year-on-year, amounting to €958.6 million (2011: €962.2 million). They include costs for efficiency programmes of €23.1 million (2011: €1.1 million); expenses of €13.1 million were incurred in 2012 for the prohibited merger with NYSE Euronext (2011: €82.2 million). Adjusted for these one-off effects, costs increased by 5 per cent to €922.4 million (2011: €878.7 million) in line with the company's full-year cost guidance.
The result from Deutsche Börse Group's equity investments amounted to €-4.3 million (2011: income €3.6 million). It was generated primarily by Scoach Holding S.A., Direct Edge Holdings, LLC and European Energy Exchange AG. The positive contributions made by these companies were offset by an impairment loss of €10.8 million recognised on the Group's interest in Quadriserv Inc., which resulted in total in a negative result from equity investments.
Mainly because of lower net revenue, Deutsche Börse Group's earnings before interest and tax (EBIT) declined to €969.4 million (2011: €1,162.8 million). Adjusted for the one-off effects mentioned above, the Group's EBIT amounted to €1,005.6 million (2011: €1,246.1 million).
The Group's financial result for the financial year 2012 was €-132.7 million (2011: €-3.8 million). The significant decrease is primarily due to Deutsche Börse AG's agreement with SIX Group AG to acquire all the shares in Eurex Zürich AG. Under the terms of the agreement, part of the purchase price was to be settled in shares of Deutsche Börse AG. The equity component of the purchase price liability was definitively measured at fair value through profit and loss on 1 February 2012. The rise in the price of Deutsche Börse AG shares between 31 December 2011 and 1 February 2012 led to a non-cash, tax-neutral expense of €26.3 million on the measurement of the equity component and an expense of €1.1 million on the compounding of the discounted cash component. For 2011, there had been non-cash, tax-neutral income of €80.8 million on the measurement of the equity component and an expense of €3.4 million on the compounding of the discount on the cash component.
In addition, at the end of September 2012, Deutsche Börse AG placed a corporate bond totaling a volume of €600 million. In this context, Deutsche Börse AG submitted an offer to the holders of existing euro bonds for the repurchase of these bonds which was accepted with a principal amount of €309.2 million. The placement of the corporate bond and the concurrent buy-back of part of the existing euro bonds resulted in one-off effects of €12.4 million in the fourth quarter 2012. Adjusted for these two effects the financial result 2012 amounted to €-92.9 million (2011: €-81.2 million).
The effective Group tax rate was 26.0 per cent in 2012 (2011: 26.0 per cent). It is calculated after adjustments for the above-mentioned one-off effects made to the operating costs and the financial result. In addition, the Group tax rate was adjusted by non-recurring income from the reversal of deferred tax liabilities for STOXX Ltd. amounting to €20.7 million as a result of a decision by the Swiss financial authorities, half of which accrues to SIX Group, and by non-recurring income amounting to €37.1 million from the recognition of deferred tax assets due to the ability in the future to offset loss carryforwards in connection with the acquisition of all remaining shares in Eurex.
Thus net income of the Group amounted to €645.0 million (2011: €855.2 million). Excluding the above mentioned one-off effects net income stood at €660.9 million (2011: €839.5 million).
The Executive Board of Deutsche Börse AG proposes a dividend of 2.10 € per share for the financial year 2012. The measure is subject to the formal approval of the Supervisory Board of Deutsche Börse AG, which today already expressed its support, and of the shareholders of Deutsche Börse AG at the Annual General Meeting on 15 May 2013.
Preliminary results Q4/2012
In the fourth quarter of 2012, Deutsche Börse generated net revenue of €447.7 million (Q4/2011: €510.1 million). Net interest income from its banking business decreased to €8.4 million (Q4/2011: €19.3 million). Operating costs stood at €253.7 million (2011: €269.0 million). Adjusted for costs related to the prohibited merger with NYSE Euronext and costs for efficiency measures, operating costs were €247.1 million (Q4/2011: €240.8 million). EBIT in the last quarter of 2012 was €185.2 million, compared to €230.9 million in the previous year. Excluding one-off effects, EBIT was €191.8 million (Q4/2011: €259.1 million). The basic earnings per share in the fourth quarter of 2012 were €0.82 compared with €0.78 in Q4/2011. Adjusted for one-off effects made to operating costs, the financial result and tax, basic earnings per share were €0.64 in the fourth quarter 2012 (Q4/2011: €0.90).