Deutsche Börse has reported net revenue of EUR484.3m for Q1 2013, above that of the third and fourth quarters of 2012 (Q3/2012: EUR471.0m, Q4/2012: EUR447.7m), but down slightly on the prior-year quarter (Q1/2012: EUR506.9m).
This was mainly due to historically low interest rates and reduced equity market volatility. Adjusted for special items mainly in connection with the efficiency measures announced in February, the group’s operating costs amounted to EUR229.5m (Q1/2012: EUR225.7m). The planned slight year-on-year increase of operating costs was attributable to higher investments in growth and infrastructure. Overall, the group recorded adjusted earnings per share of EUR0.92 (Q1/2012: EUR1.01).
In March, Deutsche Börse completed the refinancing of its non-current interest-bearing liabilities, a process it started last year. In September 2012, the company placed a bond with a volume of EUR600m, a maturity of ten years and an annual coupon of 2.375 per cent on the market. Another bond with a volume of EUR600m, a maturity of five years and an annual coupon of 1.125 per cent followed in March 2013.
Gregor Pottmeyer (pictured), Deutsche Börse’s chief financial officer and executive board member for human resources, says: “In the first quarter of 2013, the market environment saw a recovery compared with the second half of 2012, which resulted in a sequential increase of net revenue. In addition, we were able to further increase the revenue contribution of new products. The focus for the current financial year remains on infrastructure developments and tapping new growth areas as well as implementing the efficiency measures announced in February.”
Deutsche Börse Group’s net revenue in the first quarter of 2013 improved compared with the previous two quarters; however, historically low interest rates and reduced equity market volatility particularly meant that it declined by four per cent to EUR484.3m (Q1/2012: EUR506.9m). Net interest income from banking business, a component of net revenue, decreased to EUR8.2m (Q1/2012: EUR18.5m), in spite of higher average customer cash deposits.
Operating costs totalled EUR295.3m in the reporting period, an increase compared with the previous year (Q1/2012: EUR248.6m). However, this item included costs for efficiency programmes and for mergers and acquisitions of EUR65.8m (Q1/2012: EUR22.9m). Adjusted for these one-off effects, costs increased by two per cent to EUR229.5m (Q1/2012: EUR225.7m) as a result of higher investments, and were thus in line with the company’s planning.
The result from Deutsche Börse Group’s equity investments amounted to EUR3.0m (Q1/2012: EUR1.7m). It was generated primarily by Scoach, Direct Edge and European Energy Exchange.
Overall, Deutsche Börse Group’s earnings before interest and tax (EBIT) declined to EUR192.0m in the reporting period (Q1/2012: EUR260.0m). Excluding the special factors mentioned above, the group’s EBIT was EUR257.8m (Q1/2012: EUR282.9m).
The group’s financial result in the first quarter of 2013 amounted to EUR23.2m compared with EUR19.8m in the first quarter of 2012, whereby the prior-year figure has been adjusted for effects from the acquisition of all of the shares in Eurex Zürich.
The effective group tax rate was 26.0 per cent in the first quarter of 2013 (Q1/2012: 26.0 per cent). This figure has been adjusted for the above-mentioned special factors relating to operating costs and the financial result.
As a result, the group’s consolidated net income in the first quarter 2013 amounted to EUR121.2m (Q1/2012: EUR146.2m). Excluding the special factors mentioned above, consolidated net income equalled EUR169.9m (Q1/2012: EUR190.5m). Basic earnings per share were EUR0.66 based on 184.1 m shares (Q1/2012: EUR0.77 based on 188.7 m shares) and adjusted earnings per share were EUR0.92 (Q1/2012: EUR1.01).