View into the large trading hall of the stock exchange in Frankfurt. (picture alliance/dpa)
German exchange operator, Deutsche Börse, benefited in 2019 from the sustained high demand for risk hedging, brisk trading on the financial markets and also takeovers. Net revenue rose by 6 percent to 2.94 billion euros, the DAX-listed financial group announced in Frankfurt on Monday evening. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) climbed by about 8 percent to 1.81 billion euros.
The bottom line was that the group earned slightly more than 1 billion euros - almost 22 percent more than a year ago. The disproportionately high increase is due to the fact that in 2019 fewer special costs were incurred for the group's restructuring than in 2018. The dividend is to increase by 20 cents to 2.90 euros per share. Earnings were broadly in line with analysts' expectations, but the dividend level is somewhat disappointing.
This could mean that the share, which has recently been climbing from one record high to the next, could come under some pressure. Only at the end of last week, the group announced that it had secured the services of Theodor Weimer, who has been CEO since the beginning of 2018, for another four years until the end of 2024.
In the current year, the group is continuing to target an increase in net revenues from structural growth opportunities of at least 5 percent. In addition, it is aiming for an increase in profits adjusted for special effects to around 1.20 billion euros. That would be an increase of just over 8 percent.
Deutsche Börse is holding its results press conference on Tuesday morning. Weimer is continuing to search for suitable takeover targets - his main focus is on foreign exchange trading centers.
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