Deutsche Börse AG has just posted its financial results for the third quarter of 2021, with revenues and profits marking a rise from the year-ago period.
Trading in equity index derivatives in the Eurex (financial derivatives) segment and equities trading in the Xetra (cash equities) segment was moderate in the three-month period. Signs of scarcer gas supplies and lower power production from wind energy rapidly caused market prices for power and gas to rise by significant multiples year on year. The volatility on power and gas markets resulting from these unexpected price rises had a positive effect on trading volume for power and gas products in the EEX (commodities) segment.
In addition, the continuing expansion of the customer base in the IFS (investment fund services) segment resulted in a very strong performance of the custody and settlement business as well as the fund distribution business.
Deutsche Börse Group generated net revenue in the third quarter of 2021 of €837.9 million (Q3/20: €707.5 million). This represents an increase of 18% compared to the same period a year ago. Amongst the main organic drivers of net revenue were the segments IFS (investment fund services), EEX (commodities) and Qontigo (index and analytics business).
The Clearstream (post-trading) segment reported solid growth despite the ongoing decline in net interest income, whereas net revenue in the Eurex (financial derivatives) and Xetra (cash equities) segments was at roughly the same level as last year for cyclical reasons. The new ISS segment (Institutional Shareholder Services) and Clearstream Fund Centre (IFS segment) contributed to M&A growth in the third quarter.
Operating costs rose in the reporting period by 17% to €375.8 million (Q3/20: €319.9 million), whereby the increase was almost entirely related to the Group’s M&A growth.
Earnings before interest, tax, depreciation and amortisation (EBITDA) came to €499.5 million in the third quarter of 2021 (Q3/20: €399.5 million), which represents growth of 25%. This comprises the result from financial investments, which includes a positive valuation effect of some €32 million from the minority investment in Clarity AI, Inc. in the Qontigo (index and analytics business) segment.
Net profit attributable to Deutsche Börse AG shareholders for the third quarter 2021 was €300.3 million (Q3/20: €227.1 million), which represents a year-on-year increase of 32%.
Earnings per share amounted to €1.64 (Q3/20: €1.24) for an average of 183.5 million shares. Earnings per share before the effects of purchase price allocations (cash EPS) were €1.74 (Q3/20: €1.28).
Gregor Pottmeyer, CFO of Deutsche Börse AG, commented:
“The Group reported double-digit net revenue growth in the third quarter, despite the ongoing lack of cyclical tailwinds. As expected, this was made possible by a combination of further secular growth and M&A. Together with our efficient cost management, we are well positioned on our planned growth path.”
In September 2021, Deutsche Börse Group announced that Clearstream is selling its 50% stake in the European trade repository, REGIS-TR, to its joint venture partner, Iberclear, part of SIX, who is taking full control of the business with closing date in the first quarter of 2022.
The decision to sell was made as part of Clearstream’s continuous review of its business portfolio. Future strategic efforts will focus on growing custody services and to further strengthen the company’s leadership position in funds services in-line with the Compass 2023 strategy.