Deutsche Börse Net Profit Increases 24% in 2022 to €1.6b

Thursday, 09/02/2023 | 09:51 GMT by Damian Chmiel
  • Deutsche Börse achieved its mid-term targets one year earlier than planned.
  • The Group forecasts this year's net revenue between €4.5-4.7 billion.
Deutsche-Börse-AG_Cutout-Logo-Mock-Up
Deutsche Börse Group

Deutsche Börse Group, the operator of the German stock exchange , has published its preliminary results for the fourth quarter and the full years of 2022, presenting a vital increase in yearly revenues and income by 24%.

Deutsche Börse Beats Financial Estimates

According to the recently published press release, the net revenue came in at €4,338 million, compared to €3,509 million reported in 2021. EBITDA jumped from €2,043 million to €2,525 million and the final net income stood at €1,563 million, rising from €1,264 million from the previous period. The annual growth rate for all of these major indicators was 24% year-over-year (YoY).

Additionally, fourth-quarter results were better than a year earlier. Net revenue reached €1,168 million compared to €943 million (up 25% YoY) and net profit was at €378 million, which is up 26% from the €300 million reported in Q4 2021.

"Deutsche Börse Group thus significantly exceeded its guidance for 2022 and achieved its mid-term targets defined in the growth strategy Compass 2023 already one year earlier than planned," the company commented in the statement.

In 2023, the Group expects to maintain its current growth rate and assumes that net revenue will increase to a range of €4.5-4.7 billion and EBITDA will be €2.6-2.8 billion. At the same time, Deutsche Börse recommends a 13% higher dividend payment at €3.60 per individual share.

Deutsche Börse's Financial Derivatives with Highest Revenue

Digging deeper into the financial report published by the Group, it can be seen that the most significant contribution to net revenue came from the 'Financial Derivatives' category, which comprises equities, interest rates and margin fees. This category's revenue increased by 24% year-on-year from €995 million to €1.2 billion. Equities alone accounted for an increase of 16% YoY from €439 million to €509 million.

However, commodities saw the most substantial jump in revenue in percentage terms. In 2021, their revenue reached €341.5 million to grow 39% YoY to €475.5 million in 2022. Commodities for Deutsche Börse's revenue class consist of power, gas and others.

Foreign Exchange accounted for the smallest part of the Group's revenue. However, FX trading grew rapidly by 23% YoY, from €107.8 million reported a year earlier to €132.8 million in 2022.

Watch the recent FM Webinar on accessing international exchange data via the cloud.

Deutsche Börse Reports Lower Order Book Turnover

According to data published by Deutsche Börse in early January, Deutsche Börse's Xetra, Börse Frankfurt and Tradegate Exchange trading venues reached a total order book turnover of €1.8 trillion during the first seven months of 2022 alone. The results sharply contrast with the €1.9 trillion generated across the venues a year earlier.

For December 2022, the total order book turnover declined 20% to €92 billion, falling from €115.1 billion reported in the prior year.

"Of this amount, €89.8 billion was attributable to Xetra and €2.2 billion to Börse Frankfurt. The average daily turnover on Xetra in December was €4.3 billion (previous year: €6 billion / previous month: €5.1 billion)," Deutsche Börse explained.

In September, the Group reported that it had reached an agreement with the Santiago Exchange of Chile regarding market data. The Chilean trading floor is the third largest in Latin America. The latest partnership will provide access to the platform's full range of financial product data in the German market.

Deutsche Börse Group, the operator of the German stock exchange , has published its preliminary results for the fourth quarter and the full years of 2022, presenting a vital increase in yearly revenues and income by 24%.

Deutsche Börse Beats Financial Estimates

According to the recently published press release, the net revenue came in at €4,338 million, compared to €3,509 million reported in 2021. EBITDA jumped from €2,043 million to €2,525 million and the final net income stood at €1,563 million, rising from €1,264 million from the previous period. The annual growth rate for all of these major indicators was 24% year-over-year (YoY).

Additionally, fourth-quarter results were better than a year earlier. Net revenue reached €1,168 million compared to €943 million (up 25% YoY) and net profit was at €378 million, which is up 26% from the €300 million reported in Q4 2021.

"Deutsche Börse Group thus significantly exceeded its guidance for 2022 and achieved its mid-term targets defined in the growth strategy Compass 2023 already one year earlier than planned," the company commented in the statement.

In 2023, the Group expects to maintain its current growth rate and assumes that net revenue will increase to a range of €4.5-4.7 billion and EBITDA will be €2.6-2.8 billion. At the same time, Deutsche Börse recommends a 13% higher dividend payment at €3.60 per individual share.

Deutsche Börse's Financial Derivatives with Highest Revenue

Digging deeper into the financial report published by the Group, it can be seen that the most significant contribution to net revenue came from the 'Financial Derivatives' category, which comprises equities, interest rates and margin fees. This category's revenue increased by 24% year-on-year from €995 million to €1.2 billion. Equities alone accounted for an increase of 16% YoY from €439 million to €509 million.

However, commodities saw the most substantial jump in revenue in percentage terms. In 2021, their revenue reached €341.5 million to grow 39% YoY to €475.5 million in 2022. Commodities for Deutsche Börse's revenue class consist of power, gas and others.

Foreign Exchange accounted for the smallest part of the Group's revenue. However, FX trading grew rapidly by 23% YoY, from €107.8 million reported a year earlier to €132.8 million in 2022.

Watch the recent FM Webinar on accessing international exchange data via the cloud.

Deutsche Börse Reports Lower Order Book Turnover

According to data published by Deutsche Börse in early January, Deutsche Börse's Xetra, Börse Frankfurt and Tradegate Exchange trading venues reached a total order book turnover of €1.8 trillion during the first seven months of 2022 alone. The results sharply contrast with the €1.9 trillion generated across the venues a year earlier.

For December 2022, the total order book turnover declined 20% to €92 billion, falling from €115.1 billion reported in the prior year.

"Of this amount, €89.8 billion was attributable to Xetra and €2.2 billion to Börse Frankfurt. The average daily turnover on Xetra in December was €4.3 billion (previous year: €6 billion / previous month: €5.1 billion)," Deutsche Börse explained.

In September, the Group reported that it had reached an agreement with the Santiago Exchange of Chile regarding market data. The Chilean trading floor is the third largest in Latin America. The latest partnership will provide access to the platform's full range of financial product data in the German market.

About the Author: Damian Chmiel
Damian Chmiel
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About the Author: Damian Chmiel
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
  • 1521 Articles
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