Deutsche Brse achieves 19% rise in earnings in Q2/2008, 8 % increase in sales revenue to 585.5 million/17% rise in EBITA to 375.1 million/Earnings per share up 19% to 1.30.
Deutsche Brse AG achieved new record second-quarter results in Q2/2008. Sales revenue rose by 8% to 585.5 million (Q2/2007: 542.5 million), reflecting both stable revenue performance in the second quarter in the Group’s two largest business areas, Eurex and Clearstream, and the consolidation of the International Securities Exchange (ISE). The Company accrued a further 59.2 million (Q2/2007: 62.0 million) in net interest income from banking business. Total costs amounted to 297.0 million in the second quarter, 5% down on the prior year (Q2/2007: 311.9 million) despite the consolidation of the ISE.
Total costs include amortization of intangible assets of approximately 10 million in connection with ISE. EBITA in the second quarter increased by 17 % to 375.1 million (Q2/2007: 321.8 million). Based on the average number of 192.1 million shares outstanding, earnings per share in Q2/2008 rose by 19% to 1.30 (Q2/2007: 1.09 based on 194.1 million shares outstanding).
“The results for the second quarter 2008 are further proof of the earnings power of Deutsche Brse Group,” says Thomas Eichelmann, CFO of Deutsche Brse. “Despite weaker business activity in some areas of the Group due to the general uncertainty in financial markets, we were able to increase our earnings in the second quarter also without the additional contribution of ISE. The record results for the first half of the year confirm our expectation for earnings growth in 2008 against the previous year.”
Due to the excellent results in the first two quarters of 2008, the Company achieved a new record result for H1/2008. Sales revenue in the first six months of 2008 increased by 13% to 1,230.0 million (H1/2007: 1,085.6 million), with the Company accruing a further 123.5 million (H1/2007: 108.1 million) in net interest income from banking business. EBITA climbed by 29% to 800.9 million (H1/2007: 622.1 million). Earnings per share rose by 39% to 2.88 (H1/2007: 2.07).
“Deutsche Brse Group continued to be well on track in the first half of 2008,” says Reto Francioni, the CEO of Deutsche Brse Group. “We work efficiently and successfully in current unfavorable market conditions. Thus, we make an important contribution to stabilize the financial system.”
Segment reporting Sales revenue in the Xetra segment fell by 14% in the second quarter to 91.2 million (Q2/2007: 105.5 million), mainly owing to investor restraint in cash market trading due to uncertainty in the markets. In particular the trading activity of private investors in floor trading was down considerably.
The trading volume on Xetra fell by 21% to 475.8 billion (Q2/2007: 602.2 billion), although the number of transactions actually rose by 15% to 46.6 million (Q2/2007: 40.5 million). The proportion of algorithmic trading on Xetra stood at 40 % in the second quarter (Q2/2007: 39 %). Floor trading volume fell by 41% to 16.2 billion. EBITA displayed a drop of 17 % to 51.4 million (Q2/2007: 62.0 million). In the Eurex segment, sales revenue in the second quarter amounted to 233.2 million a year-on-year increase of 30% (Q2/2007: 179.3 million). This rise was the result of the full consolidation of ISE.
A total of 577 million contracts were traded on Eurex in the second quarter, a rise of 15%.72% of these contracts were equity and index products and 28 % interest rate products. A further 245 million contracts on US underlyings were traded on the ISE, 34% more than in Q2/2007. EBITA displayed a rise of 30 % to 138.9 million (Q2/2007: 106.7 million). Total revenue in the Clearstream segment (including net interest income from banking business) declined by 1% to 250.8 million (Q2/2007: 253.0 million). The average value of securities held in custody increased year-on-year by 2% to 10.7 trillion (Q2/2007: 10.5 trillion).
The number of settlement instructions saw a drop of 13% to 26.4 million primarily due to the decline in private investor activity (Q2/2007: 30.2 million). EBITA for this segment displayed a rise of 27% to 133.8 million in the second quarter (Q2/2007: 105.4 million). Revenue development at Market Data & Analytics remained positive. Sales revenue increased by 12% to 45.7 million (Q2/2007: 40.7 million).
The revenue rise is primarily attributable to new subscriptions for price and trading data for the cash and futures markets, as well as the growth in index products. EBITA displayed a rise of 41% to 26.3 million (Q2/2007: 18.6 million). External sales revenue in the Information Technology segment fell by 8% to 23.8 million (Q2/2007: 26.0 million). The decrease was mainly due to the lower volumes recorded on the trading platforms operated by the Information Technology segment for external clients. EBITA displayed a year-on-year rise of 13% to 29.0 million (Q2/2007: 25.7 million).