Yahoo Finance

• Net Revenue: Increased by 6% to EUR1.5 billion.

• Net Revenue (Excluding Treasury): Increased by 10%.

• Annual Recurring Revenue (ARR): Increased by 15% year-on-year to EUR618 million.

• Operating Costs: Increased by 6%, with underlying costs growing by 3%.

• EBITDA (Excluding Treasury): Increased by 11%.

• Share Buyback Program: EUR78 million repurchased, EUR422 million remaining.

• Trading and Clearing Net Revenue: Increased by 12% without treasury results.

• Fund Services Net Revenue Growth: Custody 23%, Settlement 30%, Distribution 20%.

• Securities Services Net Revenue: Increased by 19%.

• Assets Under Custody: Reached EUR16.1 trillion.

• Settlement Transactions: Reached a record of EUR9.5 million in March.

• Interest Income (Securities and Fund Services): Declined by 11% to EUR172 million.

• Full Year Guidance: Net revenue around EUR5.2 billion, EBITDA around EUR2.7 billion, both excluding treasury.

• Treasury Result Forecast: Around EUR850 million for 2025.

• Warning! GuruFocus has detected 7 Warning Sign with DBOEF.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Deutsche Boerse AG (DBOEF) reported a strong 10% increase in net revenue without the treasury side, driven by double-digit growth in cash equities, fund services, and FX.

• Annual recurring revenue (ARR) increased by 15% year-on-year, reaching a record level of EUR618 million, indicating strong client momentum.

• The company achieved a 12% increase in net revenues in Trading and Clearing, with significant growth in cash equities and FX due to increased market volatility.

• Fund Services and Securities Services reached new all-time highs in custody and settlement, resulting in double-digit net revenue growth.

• Deutsche Boerse AG (DBOEF) has identified significant medium- to long-term growth opportunities from European equities inflows, defense and infrastructure investments, and the EU's Savings and Investment Union initiative.

Negative Points

• Investment Management Solutions experienced stable net revenue performance due to high comparables from 2024, leading to lower upfront license revenues.

• Operating costs increased by 6% due to higher provisions for share-based compensation and a stronger US dollar, although underlying costs grew by 3%.

• The treasury result declined by 12% in the first quarter, impacting overall net revenue growth.

• There was a 25% decline in repo business revenue, attributed to strong prior year comparisons and sufficient market liquidity.

• The transition from on-premise to SaaS in Software Solutions led to a 32% decline in on-premise revenues, affecting overall revenue perception despite strong ARR growth.