Deutsche Börse Profit Surges

(RTTNews) - Exchange operator Deutsche Börse AG (DBOEY.PK, DBOEF.PK) said Monday its third-quarter net income surged to 160 million euros or 0.87 euros per share from 61.6 million euros or 0.33 euros per share last year, helped by growth across most segments.

Excluding items, adjusted earnings for the quarter were 0.85 euros per share compared with 0.83 euros per share a year ago.

Revenues for the quarter rose 8 percent to 495.9 million euros from 457.9 million euros in the prior year.

The company said that the increase in revenue at Eurex, the derivatives segment, and at Clearstream, the post-trade segment, as well as growth in the Market Data and Services segment more than offset a slight decline in the Xetra cash market segment.

According to the company, capital market environment remains tense due to the economic conditions in the euro zone, unstable political conditions in some Eastern European regions and trouble spots keep flaring up in the Arab world. Also market participants have to contend with regulatory initiatives, low key interest rates as well as low inflation.

Due to the macroeconomic developments, volatility rose significantly, primarily on the cash market, at the end of the third quarter. Against this backdrop, Deutsche Börse Group's cash markets recovered slightly in the quarter.

On the derivatives market, increases were recorded in particular in the company's index business, which is used to hedge against uncertainties in macroeconomic developments.

Clearstream, the segment responsible for post-trade activities, continued its upward trend, driven especially by gains from additional assets invested by major customers. Deutsche Börse Group's technology and market data business also experienced an upswing.

The company confirms its forecast for 2014 and expects to generate net revenue in the middle of the forecast range of 1.9 billion euros to 2.1 billion euros.

The ECB published the results of its stress test and Comprehensive Assessment of banks on October 26, and Deutsche Börse's subsidiary Clearstream Banking S.A. passed the test with positive results in all scenarios.

In Germany, the company's shares closed on Monday at 52.63 euros, down 0.27 euros or 0.51%, on a volume of 628k shares.