Efficiency drive cuts Deutsche Boerse profit

 
City A.M. Reporter
DEUTSCHE Boerse said quarterly earnings before interest and taxes (Ebit) fell to €192m (£162m) after low interest rates and reduced equity market volatility dented revenue.

Net revenue fell four per cent in the first quarter to €484.3m, although it registered an improvement compared with the previous two quarters, the company said yesterday.

The stock market operator said earnings had been hit by the cost of efficiency programmes, which cost €65.6m for the quarter.

The firm expects to spend €90m to €120m on further programmes throughout the year.

“The focus for the current financial year remains on infrastructure developments and tapping new growth areas as well as implementing the efficiency measures announced in February,” said chief financial officer Gregor Pottmeyer.

However, Deutsche Boerse still said it expects full-year 2013 revenue of between €1.8bn and more than €2bn.

Operating costs were €295.3m, which was higher than the €248.6m for the same time last year.

When one-off costs were taken into account, costs increased two per cent to €229.5m because of the company’s planned investments.