Wednesday, April 27, 2016

ROUNDUP: German stock exchange earns less – preparation for mega-merger plan – FAZ – Frankfurter Allgemeine Zeitung

ESCHBORN (AFX) – The ongoing negotiations on the mega-merger with the London Stock Exchange have the German Stock Exchange & lt; DB1.ETR & gt; slowed down somewhat in the first quarter. Although placed the net proceeds thanks to the turbulence on the capital markets by eight percent to 648.5 million euros, as the Dax Group & lt; DAX.ETR & gt; announced in Eschborn near Frankfurt on Wednesday evening. Higher costs consumed it on but. The bottom line was finally a decrease in profit of nearly eight percent to 205.4 million euros.

The adjusted for special items earnings before interest and taxes (EBIT) grew by over nine per cent to 349.5 million euros. That it, the bottom line is less arrived, is also due to higher interest expense. The Group had increased its debt for two acquisitions in the past year. In addition, special effects had helped in the first quarter 2015 the exchange operator. The figures were in line with expectations of analysts.

Kengeter PROMOTES FUSION

In the proposed multi-billion dollar merger with the London Stock Exchange, CEO Carsten Kengeter looks on course. “We are working intensively on the preparation of all necessary approvals and are fully here in the plan.” From various quarters he had received support for the merger. The move was good for both companies, customers and shareholders, as it strengthens the financial centers of Frankfurt and London.

The Frankfurt stock exchange operator and the London Stock Exchange (LSE) had officially announced in March its intention to merge. The German stock market to keep future with 54.4 percent majority stake in the enlarged group. but headquarters shall be London, while Kengeter is provided as CEO.

SKEPSIS FOR ANALYSTS

Analysts are still skeptical whether the business succeeds. For example, the competition protectors of the European Commission must agree. Even the State of Hesse may prohibit the licensor for operation on the Frankfurt Stock Exchange merger. And finally threatens even a rival bid from one of the major stock market operators in the US. That could make the deal for the German market more expensive. The shareholders of LSE and German stock market should probably decide in the course of the second quarter.

On its forecast the German market held despite the weaker start to the year. Accordingly, revenue is forecast to continue at five to ten percent increase profits by 10 to 15 percent. Last year, the German stock exchange had generated net sales of nearly 2.4 billion euros and a net profit of 665.5 million euros.

EUREX RECORD REVENUE

The turmoil on the capital markets at the beginning of helped the Eurex derivatives exchange to a record sum. This drove operating profit by more than a third high to 176 million euros. The trading volume was around twelve percent higher, because the face of fierce uncertainties in the capital markets, many investors new hedging transactions agreed – and especially in the high-margin areas such as interest rate and equity index derivatives.

On the other hand it was in the other divisions of the group down. This also affected the stock markets. The trading volume of daughter Xetra plummeted by ten percent, the profit of the division therefore melted by almost a quarter to just under 25 million euros. A portion of the proceeds growth of the group went to the account of acquisitions in the past year.

RÜCKENWIND FOR LSE

Meanwhile, the London Stock Exchange tackle strengthened the next steps on the road to fusion. They had increased, according to the Wednesday of the first quarter sales by eight percent to nearly 359 million pounds (463 million euros). The bottom line is an increase of two percent to nearly 614 million pounds remained. / Enl / she

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