Deutsche Börse AG Announces Strong Revenues and Profit for Q3 2017

Earlier today, Deutsche Boerse’s CEO Carsten Kengeter announced that he is stepping down.

Frankfurt-based Deutsche Börse AG, Germany’s paramount exchange, today disclosed its preliminary results for the third quarter of 2017. According to the filing, the metrics were largely stronger when weighed against 2016 equivalents.

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In particular, Deutsche Börse reported a net revenue of €576.3 million ($671.2 million) in Q3 2017, which was higher by 3 percent year-on-year from €558.5 million ($650.5 million) in Q3 2016. Deutsche Börse saw a period of strong revenues in the third quarter, despite what was widely billed as a very weak market atmosphere over the past three months, fueled by advances in yields across a number of its business segments. This included development in the Clearstream segment, as well as by growth generated in the index business of the market data and services segment, per the Frankfurt exchange operator statement.

The same narrative was noted across Deutsche Börse’s total operating income for Q3 2017, having yielded a profit of €198.1 million ($230.7 million) – this represents a jump of 4 percent year-on-year from €190.7 million ($222.1 million) in the same quarter a year ago.

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In terms of operating costs, the German bourse saw a figure of €247.4 million in Q4 2016, registering a tepid increase of less than 1.0 percent year-on-year from €244.8 million in the year prior.

Commenting on the results, Gregor Pottmeyer, Chief Financial Officer of Deutsche Börse AG, said: “Our secular growth initiatives are well on track. However, due to prevailing negative cyclical effects, we will very likely not be able to fully meet our targets for the financial year 2017. Nonetheless, the Group remains very well positioned to benefit from secular and cyclical growth over the medium term. Deutsche Börse Group therefore affirms its forecast for annual earnings growth of between 10 per cent and 15 per cent for 2018 and 2019.”

Earlier today, Deutsche Börse CEO Carsten Kengeter announced that he is stepping down amid ongoing investigations into possible insider trading that took advantage of undisclosed information about merger plans with the London Stock Exchange.

Carsten Kengeter told Deutsche Boerse’s supervisory board that he’d be gone by the end of the year in order to allow the company to “focus its energy back onto clients, business and growth and to avoid further burdens caused by the ongoing investigation.”

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