Deutsche Börse reports 9% increase in revenues for 2021
Deutsche Börse has posted its financial results for the final quarter and full year 2021.
The financial year 2021 was defined by low market volatility, following very high levels in the previous year. This reduced net revenue in the trading segments Eurex (financial derivatives) and Xetra (cash equities). Net interest income in the Clearstream segment (post-trading) also continued to decline as a result of the US interest rate development. This reduced the Group’s cyclical net revenue by some 4% against the previous year.
This was offset by strong secular growth and M&A effects. The Group’s secular net revenue went up by 6%. The highest secular growth was reported by the IFS segment (investment fund services): IFS attracted new customers and realised revenue synergies between fund custody and distribution.
The segments EEX (commodities) and ISS (Institutional Shareholder Services) also contributed to growth. Additional net revenue from M&A growth was generated by the acquisition of ISS with its strong ESG business, and by Fund Centre.
Overall, Group net revenue increased by 9% to €3,509.5 million (2020: €3,213.8 million). Recurring net revenue, which is becoming increasingly important, rose to 55% of total net revenue (2020: 49 per cent).
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 9% to €2,043.1 million (2020: €1,869.4 million). Depreciation, amortisation and impairment losses came to €293.7 million (2020: €264.3 million); the increase was mainly due to the purchase price allocation for acquisitions.
In 2021 the net profit for the period attributable to shareholders of Deutsche Börse Group was €1,209.7 million, an increase of 12% on the previous year (2020: €1,079.9 million). Basic earnings per share were €6.59 (2020: €5.89) for an average of 183.5 million shares. Earnings per share before purchase price allocations (Cash EPS) were €6.98 (2020: €6.07).
The Executive Board of Deutsche Börse AG is proposing a dividend of €3.20 for financial year 2021 (2020: €3.00). This represents an increase of 7% and a distribution ratio of 49%. The dividend still requires the formal approval of the Supervisory Board and shareholders of Deutsche Börse AG at the Annual General Meeting on 18 May 2022; the Supervisory Board has already expressed its support for the proposal.
For 2022 the Group is expecting net revenue to increase to around €3.8 billion, with EBITDA rising to around €2.2 billion. The net revenue growth guidance is based largely on expected secular growth and the additional contribution from M&A transactions completed in 2021.