Stock exchange chief Weimer has every reason to be satisfied: business is going well, the share has risen sharply, his contract has been extended. The manager still brakes on one issue.
Frankfurt / Main (dpa) - After a record-breaking profit, Deutsche Börse boss Theodor Weimer dampens expectations of the new strategy announced for May.
"In view of the results, given where we are, there is no need to change the course or to change direction fundamentally," said Weimer when the Dax group presented its financial statements in Frankfurt. "Our own growth remains a strong priority for us."
On May 28, the management wants to present the plans for the next three years to investors at a capital market day in London: "Compass 2023". The strategy will be "more of an evolutionary character," said Weimer, whose contract was extended until the end of 2024.
The year 2020 started well, Weimer said. The target for this year is an increase in net sales of at least five percent. The Management Board is also striving to increase the profit adjusted for special effects to around EUR 1.20 billion. That would be an increase of just over eight percent.
Last year, the Frankfurt market operator benefited from the fact that more was traded due to the uncertainty caused by trade conflicts and the drama surrounding Brexit. The strengthening of the index business with the takeover of the provider Axioma also paid off. In addition, the Deutsche Börse subsidiary Clearstream recently secured 51 percent of the UBS fund sales platform Fondcenter.
According to Weimers, Deutsche Börse currently has two billion euros available for possible further acquisitions. He kept a low profile on possible takeover targets and referred to the capital market day at the end of May. According to earlier information, Weimer is looking, among other things, for strengthening foreign exchange trading.
"Of course we have the claim that the LSE and others do not hurry too far. If we do not continue to grow, we will be passed on," said Weimer, referring to competitors such as the London stock exchange LSE. "But we are not driven that we have to make a deal now."
In 2019, net revenue increased by six percent to around 2.94 billion euros, as the group had already announced on Monday evening. The bottom line was a profit of just over one billion euros (previous year: 824.3 million euros). Adjusted for special effects such as costs for takeovers and job cuts, the surplus was a good 1.1 billion euros. In the 2008 financial year, Deutsche Börse had for the first time in its history more than a billion euros in surplus: 1.033 billion euros.
The disproportionate increase in the past year can be explained by the fact that 2019 saw fewer special costs for the group restructuring than in 2018. The shareholders should benefit from this: The dividend should rise by 20 cents to EUR 2.90 per share. The value of the paper had recently climbed to a record high of just over € 155.
Weimer, who was previously head of Hypovereinsbank, had taken over the management of the Dax group after the crisis year 2017. That year, the planned merger with the London Stock Exchange (LSE) failed, and a compensation program tailored to the then CEO, Carsten Kengeter, led to investigations by the Frankfurt prosecutor into possible insider trading. Everyday business is back in the foreground.
Deutsche Börse on the 2019 financial year