Deutsche Börse AG published its preliminary figures for the fourth quarter and full-year 2014 on Wednesday. The Group generated net revenue of €2,043.0 million, a rise of 7 per cent year-on-year (2013: €1,912.3 million). Adjusted operating costs increased as planned by 10 per cent to €1,068.8 million (2013: €967.6 million) as a result of consolidation effects and higher investments in growth initiatives and infrastructure. Adjusted earnings before interest and tax (EBIT) were €982.8 million (2013: €954.0 million). Basic earnings per share adjusted for exceptional items amounted to €3.63, a year-on-year increase of 5 per cent (2013: €3.46).
Deutsche Börse AG's Executive Board is proposing a stable dividend of €2.10 per share for financial year 2014 (2013: €2.10). This proposal still requires formal approval by Deutsche Börse AG's Supervisory Board, which has already expressed its support, and by Deutsche Börse AG's shareholders at the Annual General Meeting on 13 May 2015.
Gregor Pottmeyer, Deutsche Börse AG's CFO and Executive Board member for human resources, said: “The increase in net revenue in 2014 is due on the one hand to the extremely strong fourth quarter, which is attributable to cyclical effects. On the other hand, we made further progress in tapping new growth areas, including Asia. With this we consider ourselves in a very good position to meet our objectives until 2017 of 5 to 10 per cent net revenue growth per annum.”
With regard to expectations for 2015, Gregor Pottmeyer said, “The year has got off to a very strong start, with volumes exceeding the fourth quarter in most business areas. We anticipate net revenue to grow to €2.1 to €2.3 billion. Operating costs will increase to approximately €1,180 million, largely due to consolidation and exchange rate effects. As a result, we expect a slight to significant increase in earnings, depending on net revenue development.”
Preliminary results 2014
In financial year 2014, Deutsche Börse Group's net revenue increased by 7 per cent to €2,043.0 million (2013: €1,912.3 million)  due to strong performances by the Clearstream and Market Data + Services segments as well as higher equity market volatility at the end of the year.
At €1,114.8 million in the reporting period, operating costs decreased year-on-year (2013: €1,182.8 million). This was primarily due to lower non-recurring items, which amounted to €46.0 million (2013: €215.2 million) and largely comprised the costs of efficiency programmes and mergers. In the previous year, the non-recurring items comprised a settlement payment to the US Office of Foreign Assets Control (OFAC). Adjusted for these one-off factors, costs increased by 10 per cent to €1,068.8 million (2013: €967.6 million) due to consolidation effects and higher investments in growth initiatives and infrastructure, in line with the Group's forecast.
Deutsche Börse Group's result from equity investments amounted to €78.3 million (2013: €9.3 million). This significant increase is mainly attributable to the exceptional gain in connection with the merger of Direct Edge ECN LLC and BATS Global Markets, Inc. in January 2014. Adjusted for non-recurring items, the result from equity investments amounted to €8.6 million.
Earnings before interest and tax (EBIT) at Deutsche Börse Group rose significantly during the reporting period to €1,006.5 million (2013: €738.8 million). This was due to higher net revenue and to the non-recurring cost items in 2013. Excluding the non-recurring items mentioned, the Group's EBIT was €982.8 million (2013: €954.0 million).
The Group's financial result for financial year 2014 was €–43.1 million (2013: €–70.7 million). The improvement mainly resulted from the refinancing of the Group's long-term financial liabilities, which was completed in the second quarter of 2013.
The effective Group tax rate for 2014 amounted to 18.2 per cent. Adjusted for exceptional items relating to operating costs and the financial result, the figure was 26.0 per cent as in the previous year. In addition, the Group tax rate was adjusted for a one-off gain of €78.9 million relating to the discontinuation of the internal financing structure for the ISE acquisition in 2007.
As a result, the Group's consolidated net profit for the year amounted to €762.3 million (2013: €478.4 million). Excluding the non-recurring items mentioned above, consolidated net profit for the year totalled €669.4 million (2013: €636.8 million).
Basic earnings per share, based on the weighted average of 184.2 million shares, amounted to €4.14 (2013: €2.60 for an average of 184.1 million shares outstanding). Adjusted for the non-recurring items mentioned above, basic earnings per share were €3.63, a 5 per cent increase year-on-year (2013: €3.46).
Preliminary results Q4/2014
Deutsche Börse generated net revenue of €544.5 million in the fourth quarter of 2014 (Q4/2013: €473.0 million). Operating costs amounted to €338.6 million (Q4/2013: €284.6 million). Adjusted for non-recurring items, operating costs were €310.1 million (Q4/2013: €267.9 million). EBIT was €208.3 million, compared with €189.5 million in the prior-year period. Adjusted for non-recurring items, EBIT amounted to €237.1 million (Q4/2013: €206.2 million). Basic earnings per share were €1.21, compared with €0.68 in the fourth quarter of 2013. Adjusted for the non-recurring items described above, basic earnings per share in the fourth quarter of 2014 amounted to €0.88 (Q4/2013:€0.74).
Further information
Attached please find Deutsche Börse’s consolidated income statement and segment reporting.