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

FX OTC platform 360T generated €24.2 million in net revenue in Q3 2020.

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.

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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.

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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.

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