Deutsche Boerse AG (DBOEY) Q2 2016 Earnings Call

posted in: Earnings Call, Notes | 0

Gregor Pottmeyer – CFO

Earnings grew faster than revenue; Expecting double digit in full year

“In total, net revenue increased by 10% to EUR601 million. At the same time, the adjusted operating costs increased only slightly, despite a higher cost base, due to consolidation effect. This was a result of targeted cost containment measures, we have implemented in the last couple of months. As a consequence the EBIT and EPS grew over proportional at a rate of 19%. With this, we are well on track to achieve our double digit earnings growth target for 2016.”

The merger with LSE is well on track

“ We have also made good progress in the merger process with the London Stock Exchange Group. On July 4th, LSE shareholder approved the transaction in an extraordinary general meeting and this week we cost the necessary threshold in the tender offer for our shareholders…we still continued to work towards closing of the transaction in Q1 2017”

They are examining the issue of the location of the merged entity and its materiality to the merger

“…we have a referendum committee to talk about exactly that{headquarters of the holding company being in London or in the EU} and the referendum committee has started its work and the referendum committee will make recommendations to the Board of both companies. And we want to ensure that the combined group will meet all regulatory requirement, first, to secure closing of the transaction and, second, to achieve its commercial objectives, but we won’t report on the discussions which takes place in the meeting of the referendum committee in the upcoming months.”