In This Article:
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Total Net Revenue Growth: 15% in 2024.
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Net Revenue without Treasury Result: Increased by 8% organically to EUR4.8 billion in 2024.
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EBITDA without Treasury Result: Increased by 14% organically to EUR2.3 billion in 2024.
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Operating Cost Growth: 3% organic increase in 2024.
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Dividend Proposal: EUR4 per share for 2024.
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Share Buyback Program: EUR500 million in 2025.
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Investment Management Solutions ARR: Reached EUR608 million, a 17% increase compared to 2023.
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Fund Services Net Revenue Growth: 19% in custody and 42% in settlement.
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Assets Under Custody: Reached EUR15.7 trillion in December 2024.
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Expected Treasury Result for 2025: More than EUR0.8 billion.
Release Date: February 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Deutsche Boerse AG (DBOEF) achieved a total net revenue growth of 15% in 2024, surpassing their original guidance.
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The company reported an 8% organic increase in net revenues without treasury results, aligning with their expectations.
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EBITDA without treasury results increased by 14% on an organic basis, demonstrating strong operating leverage.
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The Investment Management Solutions segment showed significant progress, with SimCorp achieving a 17% increase in annual recurring revenue.
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Deutsche Boerse AG (DBOEF) proposed a dividend of EUR4 per share for 2024 and announced a EUR500 million share buyback program for 2025, reflecting strong shareholder returns.
Negative Points
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The Market Intelligence business within the ISS stocks segment faced headwinds, resulting in overall growth falling short of the original plan.
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The non-ESG business in the ISS STOXX segment experienced flat growth, impacted by headwinds in the Market Intelligence business.
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The company faced challenges in the Trading and Clearing segment due to low volatility in equity markets, affecting index derivatives revenue.
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Operating costs increased by 3% organically, driven by inflation and higher investments into growth and infrastructure.
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The Security Services segment showed limited operating leverage, with EBITDA flat year-on-year despite a 7% increase in ex-treasury revenues.
Q & A Highlights
Q: Can you explain the discrepancy between the 17% ARR growth and the 6% revenue growth for SimCorp and Axioma? How does this underpin future growth? A: The 17% ARR growth reflects expected revenue growth for the next year, while the 6% revenue growth is due to IFRS revenue recognition standards. The SaaS transformation is progressing, with SaaS revenue increasing by one-third and on-premise revenue decreasing by 2%. This transformation supports double-digit growth expectations for SimCorp, aligning with Horizon 2026 targets. - Stephan Leithner, Co-CEO