Deutsche Börse registers 10% Y/Y increase in net profit in Q2 2022
Deutsche Börse has just posted its financial report for the second quarter of 2022, with revenues and profits staging a rise in annual terms.
In the second quarter of 2022, the Group generated net revenue of €1,017.8 million (Q2/21: €881.7 million), an increase of 15% compared to the same quarter last year.
Cyclical factors contributed 6% to net revenue growth. These were driven primarily by an increase in volume in index and interest rate derivatives, gas products and in net interest income from banking business.
Furthermore, net revenue in the second quarter of the previous year included a positive valuation effect of approximately €40 million from the acquisition of the remaining shares in Clearstream Fund Centre, which was recognised in the Fund Services segment. The previous year’s net revenue also included a positive effect of approximately €7 million, which resulted in connection with the sale of the Regulatory Reporting Hub in the Trading & Clearing segment. Further there was M&A-related growth of around one per cent primarily stemming from the acquisitions of Discovery Data and Kneip.
Operating costs of €432.1 million (Q2/21: €383.2 million) increased by 13%. Of this amount, around half is attributable to M&A-related cost effects as well as exchange rate effects from a stronger US dollar. The other half represents organic cost growth mainly related to inflationary effects as well as an increase of share-based and variable payments.
Thus, earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 13% to €584.9 million (Q2/21: €518.0 million). The result from financial investments included in EBITDA contained, among other things, a negative effect from a revaluation of minority interests resulting from a sale in the Trading & Clearing segment (asset class Commodities). The previous year’s figure included the distinctly positive performance of various minority holdings.
In the second quarter of 2022, net profit for the period attributable to Deutsche Börse AG shareholders amounted to €341.1 million (Q2/21: €310.9 million), a year-on-year increase of 10%.
Earnings per share were €1.86 (Q2/21: €1.69) for an average of 183.6 million shares. Earnings per share before the effects of purchase price allocation (cash EPS) were €1.98 (Q2/21: €1.79).
Gregor Pottmeyer, CFO of Deutsche Börse AG, commented:
“Inflation, interest rates, volatility – the financial market environment is still characterised by a high degree of uncertainty. For this reason also the second quarter clearly exceeds our expectations. In addition to strong secular growth, the rising interest rate environment, in particular, is having an increasingly positive effect on net revenue. We expect volatility to remain high in most asset classes and cyclical tailwind thus to be an additional growth engine for our company. We should therefore significantly exceed the initial targets for 2022.”