Deutsche Börse Eyes €2.9 Billion 2023 EBITDA Following Successful SimCorp Takeover

<p>The third
quarter of 2023 has proven prosperous for Deutsche Börse Group, witnessing a leap of 9% in revenue to €1,188.3 million, up from the previous year's €1,090.2 million.
The period also marked the successful acquisition of SimCorp. Due to the
finalization of the acquisition, the German exchange operator intends to launch
a new business product related to investment management.</p><p>Deutsche Börse Shows
Higher Revenue and Net Income</p><p>The
financial metrics presented a promising narrative, with EBITDA climbing to
€684.8 million, a surge of 7% excluding one-offs (one-off items that are not
expected to recur), from last year's €642.3 million. </p><p>The quarter's
net income attributable to Deutsche Börse AG shareholders was €400.3 million,
rising from €373.3 million in Q3 2022. The Earnings Per Share (EPS) ascended 6% (20% excluding one-offs) to €2.16, demonstrating a robust financial
position.</p><p>The CFO of <a href="https://www.financemagnates.com/tag/deutsche-borse/" target="_blank" rel="follow">Deutsche
Börse AG</a>, Gregor Pottmeyer, remarked on the financial performance, attributing
the success to secular growth areas and favorable interest rate conditions. "We
now anticipate that we will significantly exceed our original guidance for the full
year 2023 and generate net revenue of around €5.0 billion and EBITDA of around
€2.9 billion," Pottmeyer stated. For comparison, in 2022, the company's net
profit <a href="https://www.financemagnates.com/institutional-forex/deutsche-brses-net-profit-increases-24-in-2022-to-16b/" target="_blank" rel="follow">amounted to €1.6 billion</a>.</p><p>The
<a href="https://www.financemagnates.com/terms/e/exchange/">exchange</a> operator also increased the value of its assets from €268 billion to €270
billion. </p><p>SimCorp Takeover and New
Investment Management Solutions Segment</p><p>Deutsche
Börse's successful takeover of SimCorp was a highlight of Q3 2023. With 94%
approval from SimCorp shareholders, the <a href="https://www.financemagnates.com/terms/a/acquisition/">acquisition</a> is set to conclude with the
delisting of SimCorp shares from Nasdaq Copenhagen on 30 October 2023. </p><p>Post-acquisition,
Deutsche Börse is set to inaugurate a new Investment Management Solutions
segment in Q4 2023, merging the existing Data &amp; Analytics department with
SimCorp's operations. </p><p>"Now
that the acquisition of SimCorp has been closed, we will be pooling our data,
analytics and software business in the new Investment Management Solutions
segment in the fourth quarter and thus create new growth opportunities,"
added Pottmeyer.</p><p>The
acquisition of SimCorp for €3.9 billion was first announced <a href="https://www.financemagnates.com/institutional-forex/deutsche-brse-acquires-simcorp-for-39bn-reports-12-jump-in-q1-profits/" target="_blank" rel="follow">in the Q1 2023</a>
quarterly report in April. <a href="https://www.financemagnates.com/institutional-forex/deutsche-brse-moves-forward-with-simcorp-acquisition/" target="_blank" rel="follow">A month later</a>, Deutsche Börse reported that the
negotiations regarding the acquisition and its finalization were proceeding as
planned and that the transaction be concluded in Q3 2023. The plan was
executed on schedule. </p><p>However,
optimism is not visible on the German stock exchange, where Deutsche Börse
shares are down over 2% on Thursday morning and are testing the level of €154,
the lowest since June 2022.</p>

This article was written by Damian Chmiel at www.financemagnates.com.