The third quarter of 2023 has proven prosperous for Deutsche Börse Group, witnessing a leap of 9% in revenue to €1,188.3 million, up from the previous year's €1,090.2 million. The period also marked the successful acquisition of SimCorp. Due to the finalization of the acquisition, the German exchange operator intends to launch a new business product related to investment management.
Deutsche Börse Shows Higher Revenue and Net Income
The financial metrics presented a promising narrative, with EBITDA climbing to €684.8 million, a surge of 7% excluding one-offs (one-off items that are not expected to recur), from last year's €642.3 million.
The quarter's net income attributable to Deutsche Börse AG shareholders was €400.3 million, rising from €373.3 million in Q3 2022. The Earnings Per Share (EPS) ascended 6% (20% excluding one-offs) to €2.16, demonstrating a robust financial position.
The CFO of Deutsche Börse AG, Gregor Pottmeyer, remarked on the financial performance, attributing the success to secular growth areas and favorable interest rate conditions. "We now anticipate that we will significantly exceed our original guidance for the full year 2023 and generate net revenue of around €5.0 billion and EBITDA of around €2.9 billion," Pottmeyer stated. For comparison, in 2022, the company's net profit amounted to €1.6 billion.
The exchange operator also increased the value of its assets from €268 billion to €270 billion.
SimCorp Takeover and New Investment Management Solutions Segment
Deutsche Börse's successful takeover of SimCorp was a highlight of Q3 2023. With 94% approval from SimCorp shareholders, the acquisition is set to conclude with the delisting of SimCorp shares from Nasdaq Copenhagen on 30 October 2023.
Post-acquisition, Deutsche Börse is set to inaugurate a new Investment Management Solutions segment in Q4 2023, merging the existing Data & Analytics department with SimCorp's operations.
"Now that the acquisition of SimCorp has been closed, we will be pooling our data, analytics and software business in the new Investment Management Solutions segment in the fourth quarter and thus create new growth opportunities," added Pottmeyer.
The acquisition of SimCorp for €3.9 billion was first announced in the Q1 2023 quarterly report in April. A month later, Deutsche Börse reported that the negotiations regarding the acquisition and its finalization were proceeding as planned and that the transaction be concluded in Q3 2023. The plan was executed on schedule.
However, optimism is not visible on the German stock exchange, where Deutsche Börse shares are down over 2% on Thursday morning and are testing the level of €154, the lowest since June 2022.
