Deutsche Boerse AG (DB1), the German exchange blocked from buying NYSE Euronext by European regulators in February, said second-quarter profit rose 3.2 percent, buoyed by revenue from its derivatives business.
Net income climbed to 186.2 million euros ($229 million) from 180.5 million euros in the same period a year earlier, the exchange said in an e-mailed statement today. Earnings before interest and taxes at Europe’s largest exchange by market value were 278.8 million euros compared with 279 million euros a year earlier. Revenue increased 5 percent to 555 million euros.
Deutsche Boerse is moving its Eurex futures exchange to a new trading system as it develops a standalone strategy after the European Commission vetoed the NYSE merger. The Frankfurt- based company completed the acquisition of Eurex, Europe’s largest derivatives exchange, from SIX Group AG in April.
“A major contributing factor was the full acquisition of Eurex, which has proved to be a strategically sound step,” Gregor Pottmeyer, chief financial officer of the exchange, said in the statement. “However, it will be increasingly challenging to generate growth in the current fiscal year because of the weaker market environment and the ongoing uncertainty amongst market participants.”
Deutsche Boerse shares rallied 1.03 euros, or 2.6 percent, to 41.03 euros at 5:02 p.m. in Frankfurt, even as the exchange said net revenue for 2012 will probably fall short of its forecast range.
NYSE Euronext, which reports earnings next week, and Deutsche Boerse are focusing on expanding current operations after regulators blocked their merger, partly because of concern the combination would hurt competition in derivatives and clearing. Deutsche Boerse has asked a European Union court to overturn a ban on its takeover, saying regulators made errors when reviewing the deal that would have created the world’s biggest exchange. NYSE hasn’t joined Deutsche Boerse’s appeal.
Deutsche Boerse agreed to buy its New York-based rival in a deal valued at $9.53 billion when it was announced in February 2011.
Nasdaq OMX Group Inc., the second-largest U.S. equity exchange operator, yesterday rallied the most since November after quarterly earnings beat analyst estimates and the company lowered its 2012 expense forecast. CME Group Inc., the world’s largest futures market, said today that second-quarter profit fell 17 percent from a year earlier as interest rates near zero reduced trading in the company’s biggest contract.
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