Deutsche Börse AG published its figures for the first quarter of 2013 on Monday. A slightly improved business environment meant that net revenue, at €484.3 million, was above that of the third and fourth quarter of 2012 (Q3/2012: €471.0 million, Q4/2012: €447.7 million), but down slightly on the prior-year quarter (Q1/2012: €506.9 million). This was mainly due to historically low interest rates and reduced equity market volatility. Adjusted for special items mainly in connection with the efficiency measures announced in February, the Group’s operating costs amounted to €229.5 million (Q1/2012: €225.7 million). The planned slight year-on-year increase of operating costs was attributable to higher investments in growth and infrastructure. Overall, the Group recorded adjusted earnings per share of €0.92 (Q1/2012: €1.01).
In March, Deutsche Börse AG successfully completed the refinancing of its non-current interest-bearing liabilities, a process it started last year. In September 2012, the company placed a bond with a volume of €600 million, a maturity of ten years and an annual coupon of 2.375 per cent on the market. Another bond with a volume of €600 million, a maturity of five years and an annual coupon of 1.125 per cent followed in March 2013.
Gregor Pottmeyer, Deutsche Börse AG’s CFO and Executive Board member for human resources, said: “In the first quarter of 2013, the market environment saw a recovery compared with the second half of 2012, which resulted in a sequential increase of net revenue. In addition, we were able to further increase the revenue contribution of new products. The focus for the current financial year remains on infrastructure developments and tapping new growth areas as well as implementing the efficiency measures announced in February.” With respect to the completion of the Group’s refinancing of its long-term financial liabilities, Gregor Pottmeyer commented: “Our successful capital management based on the refinancing of our long-term debt on favourable terms is further proof of the high degree of trust that the capital market has in our company.”
Results for Q1/2013
Deutsche Börse Group’s net revenue in the first quarter of 2013 improved compared with the previous two quarters; however, historically low interest rates and reduced equity market volatility particularly meant that it declined by 4 per cent to €484.3 million (Q1/2012: €506.9 million). Net interest income from banking business, a component of net revenue, decreased to €8.2 million (Q1/2012: €18.5 million), in spite of higher average customer cash deposits.
Operating costs totalled €295.3 million in the reporting period, an increase compared with the previous year (Q1/2012: €248.6 million). However, this item included costs for efficiency programmes and for mergers and acquisitions of €65.8 million (Q1/2012: €22.9 million). Adjusted for these one-off effects, costs increased by 2 per cent to €229.5 million (Q1/2012: €225.7 million) as a result of higher investments, and were thus in line with the company’s planning.
The result from Deutsche Börse Group’s equity investments amounted to €3.0 million (Q1/2012: €1.7 million). It was generated primarily by Scoach Holding S.A., Direct Edge Holdings, LLC and European Energy Exchange AG.
Overall, Deutsche Börse Group’s earnings before interest and tax (EBIT) declined to €192.0 million in the reporting period (Q1/2012: €260.0 million). Excluding the special factors mentioned above, the Group’s EBIT was €257.8 million (Q1/2012: €282.9 million).
The Group’s financial result in the first quarter of 2013 amounted to €–23.2 million compared with €–19.8 million in the first quarter of 2012, whereby the prior-year figure has been adjusted for effects from the acquisition of all of the shares in Eurex Zürich AG.
The effective Group tax rate was 26.0 per cent in the first quarter of 2013 (Q1/2012: 26.0 per cent). This figure has been adjusted for the above-mentioned special factors relating to operating costs and the financial result.
As a result, the Group’s consolidated net income in the first quarter 2013 amounted to €121.2 million (Q1/2012: €146.2 million). Excluding the special factors mentioned above, consolidated net income equalled €169.9 million (Q1/2012: €190.5 million). Basic earnings per share were €0.66 based on 184.1 million shares (Q1/2012: €0.77 based on 188.7 million shares) and adjusted earnings per share were €0.92 (Q1/2012: €1.01).