DEUTSCHE BÖRSE AG Q1/2024
financial results
Analyst and Investor Conference Call 24 April 2024
Good start into the year with Q1/2024 and further progress in the implementation of our strategy
- Consolidation of SimCorp, which contributed 10% inorganic net revenue growth, was key driver of results; business achieved good performance after the seasonally strong Q4
- Organic net revenue growth of 6% mainly driven by secular growth across the Group, while effects from higher interest rates have been largely offset by lower equity volatility
- Key contributors of secular growth in the first quarter: Software Solutions, Commodities, Financial Derivatives, and the core business in Securities Services
- Cost growth mainly a result of SimCorp consolidation; organic cost growth of 4% driven by exceptionals, inflation and investments and partly offset by lower share-based compensation
- Development in Q1/2024 slightly above expectations; guidance for the full year is confirmed at >€5.6 billion net revenue and >€3.2 billion EBITDA
- Deleveraging of balance sheet is well-on-track (commercial paper fully redeemed) and €300 million share buy-backprogramme is completed
Net revenue €1,427m +16%
EBITDA €875m +13%
Cash EPS €2.89
+7%
Deutsche Börse Group │ 24 April 2024 | 1 |
Group financials
Q1/2024
Net revenue | €m | EBITDA | €m | Cash EPS1 | € | |||
| +16% | | +13% | | +7% |
| +6% (organic) | | +9% (organic) | | +9% (organic) |
1,427 | ||
1,231 | 2.89 | |
2.70 | ||
875 | ||
772 | ||
Q1/23 Q1/24 | Q1/23 Q1/24 | Q1/23 Q1/24 |
Deutsche Börse Group │ 24 April 2024 | 2 |
Detailed income statement
Note
Treasury result | €262m | |
+15% | ||
Operating cost | €565m | |
+25% | ||
Financial investments | €13m | |
Depreciation2 | €118m | |
Financial result | €−42m | |
Net profit | €498m | |
+5% | ||
EPS | €2.70 | |
- EPS before purchase price allocation (ppa)
- Incl. ~€47m ppa effects
Operating costs
Q1/2024
Operating cost bridge | €m | Note |
| Organic cost growth of 4% was | |||
Organic | driven by exceptional costs, inflation | |||
and additional investments, which | ||||
+4% | was partly offset by lower share- | |||
565 | based compensation | |||
545 | 20 | |||
| Creation of Investment Management | |||
92 | Solutions segment resulted in | |||
exceptional costs of €11 million in | ||||
453 | Q1/2024 (~€50 million for 2024) | |||
| M&A effect mainly due to SimCorp | |||
consolidation (€92 million operating | ||||
costs in Q1/24) | ||||
Q1/23 | M&A effect | Organic cost growth | Q1/24 | |
Deutsche Börse Group │ 24 April 2024 | 3 |
Detailed income statement
Investment Management Solutions
Q1/2024
Net revenue | €m | EBITDA | €m | Business development | |||||
| +91% | | +101% | | Software Solutions benefited from | ||
| +12% (organic) | | +35% (organic) | ||||
new clients and contract renewals | |||||||
with very good momentum especially | |||||||
300 | in analytics; SimCorp's net revenue of | ||||||
€128 million in-line with expectations | |||||||
after seasonally strong fourth quarter | |||||||
139 | ESG & Index | +1% | | Software Solutions (SimCorp/Axioma) | ||||
annual recurring revenue (ARR) | |||||||
157 | amounted to €537 million at the end of | ||||||
Q1/24 (+15%) | |||||||
106 | | Further growth of demand for ESG | |||||
137 | 161 | Software Solutions | >100% | products, while headwinds for ISS | ||||
Market Intelligence solutions | |||||||
53 | |||||||
continued | |||||||
20 | | EBITDA impacted by exceptional | |||||
Q1/23 Q1/24 | Q1/23 Q1/24 | costs of €11 million |
Deutsche Börse Group │ 24 April 2024 | 4 |
Detailed income statement
Trading & Clearing
Q1/2024
Net revenue | €m | EBITDA | €m | Business development | |
-1% | -1% | Financial Derivatives impacted by | |
lower equity market volatility (−31%) | |||
and higher comparables in Q1/23; | |||
608 | 604 | higher fixed income derivatives | |
36 | 39 | FX & Digital Assets │ +8% | volumes partly offset by incentives as |
76 | 72 | Cash Equities │ -6% | part of the STIR partnership |
programme | |||
138 | 163 | Commodities │ +18% | 394 | 390 | | Commodities were driven by record |
trading activity in EU power products, | ||||||
mainly due to market share gains and | ||||||
new clients | ||||||
358 | 331 | Financial Derivatives │ -8% | | In foreign exchange, new clients (buy | ||
side) and regions (US/APAC) helped | ||||||
to offset lower volatility | ||||||
| Crypto Finance/DBDX1 business has | |||||
Q1/23 Q1/24 | Q1/23 Q1/24 | been shifted to FX in a move to pool | ||||
all expertise in digital assets |
Deutsche Börse Group │ 24 April 2024 | 5 | 1) Deutsche Börse Digital Exchange |
Fund Services | Detailed income statement | |||||
Q1/2024 | ||||||
Net revenue | €m | EBITDA | €m | Business development | ||||
| +11% | | +17% | | Fund Services segment benefitted | |
from improved equity market | ||||||
valuations and growth from new clients | ||||||
118 | and portfolios | |||||
106 | 20 | Other1 │ -9% | | Net interest income: higher rates | ||
22 | overcompensated a decline in cash | |||||
16 | Net interest income │ +46% | balances (-7%) | ||||
11 | 69 | |||||
21 | Fund Distribution │ -1% | |||||
59 | ||||||
21 | ||||||
52 | 60 | Fund Processing │ +17% | ||||
Q1/23 Q1/24 | Q1/23 Q1/24 |
1) Incl. net revenue from connectivity and fund data
Deutsche Börse Group │ 24 April 2024 | 6 |
Securities Services | Detailed income statement | |||||
Q1/2024 | ||||||
Net revenue | €m | EBITDA | €m | Business development | ||||
| +13% | | +17% | | Custody and Settlement positively | |
affected by ongoing high level of fixed | ||||||
income issuance activity and higher | ||||||
406 | index levels | |||||
361 | 36 | Other1 │ +0% | | Net interest income: higher rates | ||
36 | ||||||
310 | overcompensated a decline in cash | |||||
balances (-7%) | ||||||
176 | Net interest income │ +25% | 266 | ||||
141 | ||||||
29 | 33 | Settlement │ +12% | ||||
155 | 161 | Custody │ +4% | ||||
Q1/23 Q1/24 | Q1/23 Q1/24 |
1) Incl. net revenue from connectivity, account services and | ||
Deutsche Börse Group │ 24 April 2024 | 7 | reporting |
Appendix
Deutsche Börse Group │ 24 April 2024
We simplify financial reporting and focus on consolidated product levels
Old reporting | New reporting |
Note
Financial derivatives | 330.7 |
Equities | 113.4 |
Interest rates | 113.1 |
Margin fees | 24.0 |
t/o equities | 18.0 |
t/o interest rates | 6.0 |
Other | 80.2 |
t/o Repo | 23.5 |
Fund Services | 117.6 |
Fund Processing | 60.2 |
Fund Distribution | 21.1 |
Other | 36.3 |
t/o net interest income | 16.3 |
Financial derivatives | 330.7 |
Equities | 131.4 |
t/o margin fees | 18.0 |
Fixed Income | 142.6 |
t/o margin fees | 6.0 |
t/o Repo | 23.5 |
Other | 56.7 |
Fund Services | 117.6 |
Fund Processing | 60.2 |
Fund Distribution | 21.1 |
Net interest income | 16.3 |
Other | 20.0 |
- Margin fees are reported in the respective product group (Equities and Fixed Income)
- Repo as a strategic focus is separated from Other and reported in Fixed Income
- Other mainly contains data, connectivity and membership fees
- In Fund Services, Net interest income is separated from Other
- Crypto Finance/DBDX1, previously part of Cash Equities, transferred to FX & Digital Assets to pool expertise in the digital asset space
- Deutsche Börse Digital Exchange
Deutsche Börse Group │ 24 April 2024 | 9 |
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Deutsche Börse AG published this content on 23 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 April 2024 17:03:04 UTC.
