Deutsche Brse Group in the third quarter 2009 once again generated a solid result. Market activity has stabilized at second quarter 2009 levels despite seasonally weaker activity in July and August. Clearstreams post-trading activities also showed stable performance. Assets under custody rose quarter-on-quarter in both the international and the domestic business. Overall, it was not possible to achieve the level of revenue seen in record year 2008. Nevertheless, Deutsche Brse Group considers this development to be further proof of the stability of its broad based business model, even in weaker market phases.
Sales revenue for Deutsche Brse Group decreased slightly against the second quarter of 2009 to 500.9 million (Q2/2009: 515.6 million, 3%). The decline is largely due to price changes in trading of US options and in the settlement of German securities as well as effects caused by the weaker US dollar. In comparison to the extraordinarily strong third quarter 2008, sales revenue decreased by 19% (Q3/2008: 616.1 million). Net interest income from the Groups banking business fell in the third quarter, particularly due to a continued decline in short-term interest rates to 21.9 million (Q2/2009: 25.9 million, 15%; Q3/2008: 55.7 million, 61%). Total costs in the third quarter of 306.7 million were down slightly quarter-on-quarter (Q2/2009: 322.5 million, 5%), as well as year-on-year (Q3/2008: 311.2 million, 1%) due to the ongoing efficiency measures. The cost forecast of around 1,280 million for financial year 2009 remains unchanged.
Overall, Deutsche Brse thus generated EBITA of 243.7 million in the third quarter (Q3/2008: 385.0 million, 37%). Net income for the period amounted to 158.3 million (Q3/2008: 257.3 million, 38%). Basic earnings per share stood at 0.85 based on the average 185.9 million outstanding shares in Q3/2009.
This corresponds to a decline of 4% over the second quarter 2009 (Q2/2009: 0.89). In the prior-year quarter this figure amounted to 1.35 based on 190.5 million shares.
Sales revenue for the nine months to September 2009 amounted to 1,556.3 million (Q1-3/2008: 1,846.1 million, 16%). Despite an increase in organic growth investments, costs at 926.8 million remained stable compared to the previous year (Q1-3/2008: 924.3 million). This shows that the Groups efficiency measures prove effective. EBITA amounted to 804.1 million (Q1-3/2008: 1,185.9 million, 32%). With a tax rate for the Group of 27.0% (Q1-3/2008: 28.9%), net income for the period amounted to 529.1 million (Q1-3/2008: 810.9 million, 35%). Basic earnings per share amounted to 2.85 (Q1-3/2008: 4.23, 33%).
For 2010, the Executive Board of Deutsche Brse AG plans to further increase the expenses for organic growth initiatives and at the same time aims at not exceeding 2008 costs and the 2009 cost guidance of around 1,280 million also in 2010.
Third quarter business activity stabilized at second quarter levels despite negative seasonal effects, says Reto Francioni, CEO of Deutsche Brse AG. As a result of our strict cost management, we achieved stable costs in the first nine months compared to 2008 despite higher expenses for organic growth initiatives. Overall, we once again generated a solid result in an environment which continued to be influenced by market participants reluctance to trade.
Our ambition is to continue Deutsche Brses long standing track record for profitable growth. Against this background, the Executive Board plans to further increase the expenses for organic growth initiatives. At the same time, total costs for 2010 shall not exceed the level of around 1,280 million in 2010.
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D.C.