Despite less than ideal market conditions, Deutsche Börse AG has reported a slight increase in net revenues year-on-year for the first quarter of 2019 on Monday, thanks to solid performance by its subsidiaries 360T and EEX, among others.
Specifically, 360T, the foreign exchange (forex) subsidiary of Deutsche Börse, managed to achieve net revenue of €21.4 million during the first quarter of 2019. This translates to a growth of 21.6 percent year-on-year.
For the FX platform, revenues generated from trading was the largest contributor to net revenue for the subsidiary, climbing by 18.7 percent to reach €17.8 million.
For Deutsche Börse as a whole, during the quarter, net revenue was €720.8 million, which is higher by four percent when measured against the same time period of the previous year, which had net revenue of €691.6 million.
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Commenting on the results, Gregor Pottmeyer, the CFO of Deutsche Börse AG, said: “In a weak equity market environment during the first quarter of 2019, Deutsche Börse was able to draw upon strengths such as the planned growth of structural net revenue by five percent and its diversified business model. Hence, earnings growth in the first quarter is in-line with the guidance for the full year.”
The biggest contributor to revenues came from sales, at €747.0 million. When comparing this against the first quarter of 2018, it has risen slightly by 1.9 percent.
Although both total revenue and net revenue grew on an annual comparison, the market environment and the lower year-on-year level of equity volatility had an adverse impact on cyclical net revenue, the statement said.
360T, Eurex and EEX Report YoY Revenue Growth
Breaking net revenue down, Eurex noted a net revenue for the first quarter of 2019 of €237.6 million. This is slightly higher than the net revenue reported in Q1 of 2018 (€237.0 million) by 0.2 percent.
EEX, which focuses on commodities, reported particularly strong growth in revenues for the quarter, at €73.6 million. This is up by 19.1 percent year-on-year. According to the report, this can be attributed to a higher level of price volatility in the energy markets.