Status: 04/26/2022 08:23 a.m
Deutsche Börse has benefited from the hectic activity on the financial markets in recent months. The Ukraine war, but also the uncertainty about rising interest rates ensured gains.
A whole series of uncertain factors, such as the Ukraine war, stimulated Deutsche Börse’s business in the past quarter. Investors ensured a significant increase in trading volume.
Trading volumes also increased for commodities
According to Deutsche Börse, uncertainty on the market has increased because of the war in Ukraine, but also because of rising commodity prices and global supply bottlenecks. This has led to more trading volume in almost all asset classes – i.e. stocks, bonds and also commodities.
More investors have also hedged their holdings by using derivatives, which are also one of Deutsche Börse’s most important sources of income. The expectation of rising key interest rates in the USA and the euro zone is also likely to have led to a switch from equities to bonds.
A third more profit
The Frankfurt-based company was able to increase its sales by 24 percent to 1.06 billion euros in the first quarter. The operating result climbed by 32 to 687 million euros. And net profit rose to 421 million euros in the quarter, up a third from a year earlier. “The first quarter of 2022 was well above our expectations,” said CFO Gregor Pottmeyer. Experts interviewed by the company had expected less for both indicators. More than half of the revenue comes from the new “Trading & Clearing” segment, in which the group bundles derivatives, stocks and commodities trading, among other things.
Deutsche Börse is accordingly positive about the rest of the year and has slightly raised its forecast for 2022. For 2022 as a whole, management now expects sales to increase to more than EUR 3.8 billion. Earnings before interest, taxes, depreciation and amortization (Ebitda) are expected to increase to more than 2.2 billion euros.
According to its medium-term forecast, the group wants to grow by ten percent annually up to 2023 – both in terms of net sales and operating profit. Half of the growth is to come from acquisitions.
The figures from Deutsche Börse should go down well on the stock exchange. In the evening, the prices of the DAX member climbed in after-hours trading and are also expected to be significantly higher in XETRA trading in the morning.