Bloomberg News

Deutsche Boerse Beats Quarterly Estimates as Trading Surges

October 19, 2011

(Adds analyst comment in fourth paragraph.)

Oct. 19 (Bloomberg) -- Deutsche Boerse AG, the Frankfurt Stock Exchange owner that agreed to buy NYSE Euronext to create the world’s biggest bourse operator, beat profit and sales estimates after a rout in equities spurred a surge in third- quarter trading.

The Frankfurt-based company reported third-quarter earnings before interest and taxes of about 330 million euros ($454 million), topping the average analyst projection of 315 million euros in a Bloomberg survey. Revenue rose 20 percent to 605 million euros, exceeding the estimate of 594 million euros. Net income rose 95 percent from a year earlier to 315 million euros, according to a preliminary statement of results today.

Trading surged in Germany as the DAX Index tumbled 25 percent during the quarter, the most since 2002, as concern about the European debt crisis intensified. Average daily volume for companies in the measure more than doubled from a year earlier, according to data compiled by Bloomberg.

“It was a positive result,” Jillian Miller, an Atlanta- based analyst at BMO Capital Markets, said in a telephone interview. “It definitely came in higher than we were expecting, and the good thing was it was on legitimately stronger revenue. That’s always good to see.”

Deutsche Boerse agreed to buy New York-based NYSE Euronext in February in an all-stock transaction then valued at $9.53 billion that would expand derivatives and equities trading and listings for the companies. Since then, the value of the deal has tumbled about $2.5 billion, more than any all-stock takeover in the U.S. this year, as investors fled European equities, Bloomberg data show.

Beating Estimates

While Deutsche Boerse missed second-quarter earnings-per- share estimates by 16 percent, the exchange operator had posted better-than-projected earnings for the previous six periods, data compiled by Bloomberg show.

Deutsche Boerse will release its full third-quarter report on Oct. 27, according to its website. NYSE Euronext will post on Nov. 3 third-quarter profit excluding some items climbed to 70 cents a share, according to the average analyst projection compiled by Bloomberg.

“Our preliminary results for the third quarter 2011 show very strong performance of our business against the background of high volatility in the markets,” Deutsche Boerse Chief Financial Officer Gregor Pottmeyer said in an e-mailed statement today.

--Editors: Nick Baker, Michael P. Regan

To contact the reporter on this story: Whitney Kisling in New York at wkisling@bloomberg.net

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net


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