Wednesday October 28, 2020
Less fluctuating stock exchanges and low interest rates in the USA ensured that the summer of the trading venue operator Deutsche Börse was not entirely sunny. In the end, however, the company sees itself on track to achieve its annual targets. The focus now is on announcing the new strategy.
Summer turned out to be difficult for Deutsche Börse. The cyclical headwind caused considerable problems for the exchange operator. Lower stock market fluctuations and low interest rates in the USA had a negative impact. The two most important divisions, Eurex and Clearstream, contracted. Nevertheless, the Eschborn have confirmed the target of an adjusted surplus of around 1.2 billion for 2020. However, the exchange operator makes the achievement dependent on the activity on the markets increasing again somewhat in the fourth quarter.
Between June and the end of September, revenue fell to 708 million euros, after 734 million in the previous year. Analysts had expected sales of 719 million euros. The adjusted operating costs rose to 288 million euros and thus remained slightly below the market estimate. Unadjusted, the costs were unchanged at 320 million. Special effects resulted from costs for takeovers, consulting services and measures to reduce structural costs.
The operating result (Ebitda) fell to 400 million euros. The adjusted Ebitda, which attracted more attention from investors, fell to 431 million euros from 462 million euros in the same period last year. In the end, 236 million euros remained – a little less than in the previous year.
Looking at the individual divisions, net sales at Eurex fell to 232 million euros. Lower activity in trading in financial and interest rate derivatives was noticeable here. At Clearstream, sales fell to 191 million euros – not least because of falling interest income. Revenues also fell at EEX and 360T.
All eyes are now on the Investor Day on November 18th. At this, the head of the stock exchange Theodor Weimer will present the new growth initiative “Compass 2023”, the successor to the “Roadmap 2020”. In addition to a strategy update, new medium-term goals will probably be mentioned. Structural growth and growth through M&A activities are likely to form the two cornerstones of the new plan.
Deutsche Börse has just been left behind in takeover poker for Borsa Italiana. The search for suitable candidates will continue. The stock exchange operator is said to have an interest in the IKS fund platform of DWS and the Allfunds fund platform. If the people of Eschborn do not find what they are looking for, share buybacks could also be an alternative.