Deutsche Börse boss Theodor Weimer wants to once again exceed the record results of 2023 in his farewell year at the top of the group. The Deutsche Börse Group is “very well prepared for further successful and, above all, strong growth years,” said Weimer on Thursday at the DAX group’s headquarters in Eschborn.
Last year, the Frankfurt market operator continued its record run thanks to higher interest rates and acquisitions and earned more than ever, as the company announced on Wednesday evening. The exchange operator benefited from the brisk trading activities on the markets and good business in trading gas and electricity products.
In the current year, the board is again expecting strong growth – also thanks to the recently sealed takeover of the Danish software provider Simcorp. Weimer explained that Deutsche Börse will have “more than made up for the one-off costs of the 3.9 billion euro acquisition through lasting synergies as early as next year.”
“We won’t be doing any major M&A transactions this year.”
With the largest acquisition in its history, Deutsche Börse wants to strengthen its data business and become less dependent on fluctuations on the financial markets. The board of directors is not planning any further major acquisitions in the current year, as CFO Gregor Pottmeyer confirmed: “We will not make any major M&A transactions this year because we are focusing on integrating Simcorp now.” However, smaller acquisitions cannot be ruled out.
In 2025, Deutsche Börse is expected to have one to two billion euros in free funds again. A decision will then be made as to whether this money will be invested in acquisitions (mergers & acquisitions/M&A) or distributed to shareholders via dividends and share buybacks.
Last year, Deutsche Börse was able to increase its net revenue by 17 percent to almost 5.1 billion euros compared to the previous year. Earnings before interest, taxes, depreciation and amortization (Ebitda) also climbed by 17 percent to just over 2.9 billion euros. The bottom line is that profits increased by 15 percent to a good 1.7 billion euros within a year. In the current year, the group expects net revenue to grow to more than 5.6 billion euros and an increase in Ebitda to more than 3.2 billion euros. The Executive Board is aiming for double-digit sales and earnings growth year after year up to and including 2026.
Higher profit distribution for shareholders Shareholders should also benefit from the soaring: The dividend for the 2023 financial year is to be increased by 20 cents to 3.80 euros per share. At the beginning of January 2024, the DAX group also launched its first share buyback program in six years. The company wants to buy back its own securities for up to 300 million euros by May 3rd at the latest. For Weimer, who has led the DAX group since January 1, 2018, it is the last annual press conference as head of the German stock exchange. At the end of June, the manager said he was not seeking another term. Weimer’s contract expires on December 31, 2024.