The exchange operator earned more in the second quarter than analysts had expected.
(Photo: Reuters)
Frankfurt Deutsche Börse’s profits exceeded analysts’ forecasts thanks to high trading activity in the markets and rising interest rates. The profit attributable to the shareholders rose to 341.1 million euros in the second quarter, the stock exchange operator announced on Tuesday evening. That was an increase of ten percent compared to the same period last year. Analysts had expected growth of 5.9 percent on average.
“Inflation, interest rates, volatility – the environment on the financial markets continues to be characterized by a high level of uncertainty,” said CFO Gregor Pottmeyer, explaining the quarterly results. “In addition to strong structural growth, the rising interest rate environment in particular is having an increasingly positive effect on our net revenue.”
Net revenue increased accordingly in the second quarter by 15 percent to 1.017 billion euros. Due to the strong second quarter, Deutsche Börse is increasing its forecast for the current year: the stock exchange operator now expects net revenue to rise to well over EUR 3.8 billion. Earnings before interest, taxes, depreciation and amortization (Ebitda) are expected to increase to well over EUR 2.2 billion.
An increase in profits that was almost twice as high as expected encouraged investors to invest in Deutsche Börse. The stock exchange operator’s shares were up 1.1 percent in Lang & Schwarz’s business compared to the closing price from Xetra trading, making them the frontrunners in the Dax.
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