Deutsche Börse Reports Strong Q1 Figures due to Clearstream

Deutsche Börse AG published today its figures for the first quarter of 2015. Net revenue of the Group increased by 16% year-on-year to €600.1 million. The group says the main drivers were the positive development in custody and administration of securities, as well as in the market data business (Clearstream, Market Data + Services) and the higher equity market Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term.

Starting in the first quarter of 2015, net interest income includes also interest income and expense, respectively, from investing cash collateral provided by customers of Eurex’s Clearing House Clearing House A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e Read this Term.

At €293.0 million in the reporting period, operating costs increased as planned year-on-year. Gregor Pottmeyer, Deutsche Börse AG’s CFO and Executive Board member for human resources, said: “With the first quarter of 2015, Deutsche Börse recorded a very good start of the year. On this basis and because of further consolidation and exchange rate effects, we increase our net revenue forecast range for 2015 to between €2.2 and €2.4 billion. At the same time, we expect the operating costs, largely due to consolidation and exchange rate effects, to be in a range of approximately €1,230 million in 2015.”

The result from equity investments amounted to €5.2 million. The high figure recorded in the previous year was mainly attributable to the exceptional gain in connection with the merger of Direct Edge Holdings, LLC and BATS Global Markets, Inc. in January 2014. Adjusted for the one-off gain of €5.3 million due to the revaluation of the interest in EPEX Spot SE in the course of the initial consolidation of Powernext SA as well as an impairment loss of €1.7 million on the interest in Quadriserv Inc., the result from equity investments amounted to €1.6 million.

Due to the non-recurring item in the result from equity investments, earnings before interest and tax at Deutsche Börse Group declined to €312.7 million during the reporting period. Excluding special items mentioned above, the Group’s EBIT was €319.2 million, a rise of 16% year-on-year.

The Group’s financial result was €5.7 million. This significant improvement compared to the previous year is attributable to a positive exchange rate effect amounting to €18.1 million in connection with the rise in the amount of US dollars held. The Group has accumulated these holdings over the past months and intends to use them to repay a bond of US$170 million maturing in June 2015.

Basic earnings per share, based on a weighted average of 184.2 million shares, amounted to €1.21. Adjusted for the special items mentioned above, basic earnings per share were €1.24, a 24 per cent increase year-on-year.