GERMAN exchange operator Deutsche Boerse yesterday abandoned its 2012 revenue target after third-quarter revenues dropped thanks to subdued capital market activity.
Third-quarter earnings before interest and taxes (Ebit) fell to €245.4m (£197.6m) in the third quarter, down from €333m in the same period a year earlier, the Frankfurt-based stock and derivatives exchange operator said yesterday.
Deutsche Boerse had been expected to post quarterly Ebit of €247m.
Based on the continued weak capital market environment in October, the company said it now expects full-year 2012 net revenue of around €1.95bn, well below the target range of between €2.15bn to €2.3bn.
In July, Deutsche Boerse signalled it may have to abandon its full-year revenue target.
For the third quarter, Deutsche Boerse said net revenue was €471m, down from the €578.6m in the year-earlier period.
“We are planning a further increase in investments for the next financial year, to further accelerate the development of infrastructure and expansion into new growth areas against the background of a new regulatory framework for global financial markets,” said finance chief Gregor Pottmeyer.
“At the same time we are systematically continuing the strict management of operating costs that began well before the financial crisis,” he added.
City A.M. Reporter