Deutsche Börse AG announced Q2/2009

Deutsche Börse AG announced Q2/2009

04/08/09

In the second quarter 2009, Deutsche Börse Group generated a solid result, despite lower trading activities in financial markets compared to the same period last year. While sales revenue in the business segments Xetra and Eurex was characterized by market participants’ reluctance to trade, Clearstream contributed significantly to the Group’s sales revenue, with assets under custody constantly above €10 trillion and growth in its international business. Therewith, the diversified and integrated business model has once again proven itself. Overall, Group sales revenue decreased to €515.6 million (Q2/2008: €585.5 million, -12%) compared to the second quarter of record year 2008. Net Interest Income from the Group’s banking business fell to €25.9 million (Q2/2008: €59.2 million, -56%) reflecting new historic lows in short-term interest rates.

Deutsche Börse Group continued its tight cost management in the second quarter and reiterates its cost guidance of some €1,280 million for 2009. Total costs increased as a result of investments in growth initiatives of the Group, US-dollar exchange rate effects, the consolidation of Market News International (MNI), a SEC fee increase, an increase in stock based compensation charges due to the significant increase in Deutsche Börse’s share price, as well as provisions for the planned move to a new building in Eschborn. Against these items stood the positive effects from efficiency measures as well as the liquidation of provisions in the context of the restructuring and efficiency program. Total costs in the second quarter stood at €322.5 million (Q2/2008: €297.0 million, +9%).

Overall, Deutsche Börse generated €248.8 million in EBITA in the second quarter 2009 (Q2/2008: €375.1 million, -34%). Net income amounted to €164.9 million (Q2/2008: €249.4 million, -34%). This includes the positive effects of a reduction in the effective Group tax rate compared to financial year 2008. Based on the average number of 185.8 million shares outstanding in the second quarter 2009, basic earnings per share decreased to €0.89 (Q2/2008: €1.30 based on 191.9 million shares, -32%).

 On a consolidated basis, in H1/2009, sales revenue decreased to €1,055.4 million (H1/2008: €1,230.0 million, -14%). Costs of €620.1 million in the first half of 2009 (H1/2008: €613.1 million, +1%) demonstrate the positive effects of the efficiency measures undertaken by the Group, while investments in growth initiatives were increased. EBITA amounted to €560.4 million (H1/2008: €800.9 million, -30%). Net income for the first half of 2009 amounted to €370.8 million (H1/2008: €553.6 million, -33%), based on an effective Group tax rate of some 27 percent (H1/2008: some 29 percent). Basic earnings per share amounted to €2.00 (H1/2008: €2.88, -31%).

The stable financial position and excellent credit rating profile of the Group are a result of the continued high profitability and cash generation. No decision has been made on resuming share buybacks in 2009. The Capital Management Policy of the Group including Deutsche Börse’s general commitment to distributions remains unchanged.

Reto Francioni, CEO of Deutsche Börse AG and interim CFO, said, “Despite continued reluctance of market participants in the cash and derivatives markets compared to record year 2008, we were able to achieve a solid result for the first half year 2009. Deutsche Börse Group has once again proven that due to tight cost management it can be successful in declining markets. At the same time, we invest in growth initiatives which contribute to the stability and integrity of financial markets.”