When prices go up and down on the stock markets, one person always earns well: the stock exchange itself. This can now be seen in the annual balance sheet of the Frankfurt stock exchange operator.
Brisk trading on the financial markets, the capers in the gas price, higher interest rates and acquisitions have kept Deutsche Börse on a record course. The marketplace operator earned more than ever last year. The bottom line is that profits increased by almost a quarter to almost 1.5 billion euros, as the company listed in the Dax announced in Frankfurt. The increase in earnings is due to significantly better business in all major areas.
In terms of income, the group recorded an increase of 24 percent to 4.34 billion euros. The dividend is to be increased by 13 percent to EUR 3.60 per share. Yields and profits were therefore somewhat better than experts had expected. The increase in dividends, on the other hand, fell short of analysts’ expectations.
“In the past financial year, we not only clearly exceeded our forecast, but also achieved the goals of our Compass 2023 growth strategy a year earlier,” said CEO Theodor Weimer. “We continued to grow strongly structurally. And our customers’ increased need for hedging and rising interest rates have led to a significant cyclical tailwind.”
“In the current year we are expecting further growth in our business, despite the expected weakening of the economy,” said Weimer. The core pillar of our strategy will continue to be structural growth, supplemented by acquisitions (M&A) where this makes strategic and financial sense. In addition, we expect further cyclical stimuli in the new era of monetary policy.” Weimer has headed the group since the beginning of 2018 and, after the turbulence under his predecessor Carsten Kengeter, has led it into calmer waters and into new dimensions.
Weimer expects earnings growth of up to eight percent
Specifically, Weimer expects earnings to climb to between 4.5 billion and 4.7 billion euros in 2023. That would be an increase of up to eight percent and thus significantly less than last time. However, given the rapid growth over the past year, this is no surprise.
In terms of earnings before interest, taxes, depreciation and amortization, the manager expects an increase to between EUR 2.6 billion and EUR 2.8 billion, up to eleven percent more than in 2022. Last year, operating profit and income increased by 24 percent 2.5 billion euros.
Source: Stern
