Deutsche Börse Sees Dip in Q3 Revenue, FX Demand Growing in 2020

Thursday, 29/10/2020 | 10:21 GMT by Arnab Shome
  • FX OTC platform 360T generated €24.2 million in net revenue in Q3 2020.
Deutsche Börse Sees Dip in Q3 Revenue, FX Demand Growing in 2020
Bloomberg, Deutsche Börse building in Frankfurt

Deutsche Börse Group, a major German market organizer, has published its financial results for the third quarter of 2020, showing a drop in its revenue and profits as well.

Between July and the end of September, the net revenue of the German Group came in at €707.5 million, a decline of 4 percent from the previous year. The figure also dropped quarter-on-quarter as the Group’s net revenue reached €778 million in Q2 of 2020.

The Group pointed out a ‘significant cyclical headwind’ behind this drop in its business.

However, the adjusted operating costs of the holding company saw a yearly increase of 5 percent to €288 million, boosted by the consolidation effects.

All these contributed to a drop in the net profits of the Group for the quarter. The net profit went down by 8 percent to €235.8 million. Comparing the first nine months’ figures combined, the net profits increased by 9 percent compared to last year.

EBITDA for the latest quarter also declined by 4 percent to €399.5 million, while on an adjusted basis, the yearly drop deepens to 7 percent to €431.4 million.

Deutsche Börse operated several platforms, including the derivatives Exchange Eurex, commodities exchange EEX, foreign exchange-focused 360T, cash equities platform Xetra, Clearstream, IFS, and Qontigo.

Eurex remained the largest contributor to the Group’s total revenue with €231.8 million, while Clearstream remained the second with €191.2 million. Clearstream recently acquired a controlling stake in the fund distribution platform, Fondcenter AG.

Demand for FX is Growing Strong in 2020

360T, Deutsche Börse’s over-the-counter (OTX) Forex platform, reported net revenue of €24.2 million, a decline of 1 percent from last year. However, the number had strengthened over the two previous consecutive quarters.

Though the EBITDA from the FX business declined 7 percent year-on-year to €11.4 million, it jumped 3 percent on an adjusted basis. In the second quarter of this year, EBITDA remained at €10.2 million.

Deutsche Börse Group, a major German market organizer, has published its financial results for the third quarter of 2020, showing a drop in its revenue and profits as well.

Between July and the end of September, the net revenue of the German Group came in at €707.5 million, a decline of 4 percent from the previous year. The figure also dropped quarter-on-quarter as the Group’s net revenue reached €778 million in Q2 of 2020.

The Group pointed out a ‘significant cyclical headwind’ behind this drop in its business.

However, the adjusted operating costs of the holding company saw a yearly increase of 5 percent to €288 million, boosted by the consolidation effects.

All these contributed to a drop in the net profits of the Group for the quarter. The net profit went down by 8 percent to €235.8 million. Comparing the first nine months’ figures combined, the net profits increased by 9 percent compared to last year.

EBITDA for the latest quarter also declined by 4 percent to €399.5 million, while on an adjusted basis, the yearly drop deepens to 7 percent to €431.4 million.

Deutsche Börse operated several platforms, including the derivatives Exchange Eurex, commodities exchange EEX, foreign exchange-focused 360T, cash equities platform Xetra, Clearstream, IFS, and Qontigo.

Eurex remained the largest contributor to the Group’s total revenue with €231.8 million, while Clearstream remained the second with €191.2 million. Clearstream recently acquired a controlling stake in the fund distribution platform, Fondcenter AG.

Demand for FX is Growing Strong in 2020

360T, Deutsche Börse’s over-the-counter (OTX) Forex platform, reported net revenue of €24.2 million, a decline of 1 percent from last year. However, the number had strengthened over the two previous consecutive quarters.

Though the EBITDA from the FX business declined 7 percent year-on-year to €11.4 million, it jumped 3 percent on an adjusted basis. In the second quarter of this year, EBITDA remained at €10.2 million.

About the Author: Arnab Shome
Arnab Shome
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
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