The following is a summary of the Deutsche Börse AG (DBOEY) Q1 2024 Earnings Call Transcript:
Financial Performance:
Deutsche Boerse AG reported a 16% net revenue growth in the first quarter, with organic net revenue growth at 6%.
The consolidation of SimCorp's Software Solutions business and strong organic growth served as key drivers.
The company maintained its financial guidance for over €5.6 billion of net revenue and more than €3.2 billion of EBITDA for the full year.
Deutsche Börse confirmed an anticipated additional net revenue of €300 million from the fixed income roadmap by 2026 and €600 million revenue for SimCorp.
Despite a 14% increase in futures business volume, trading revenues remained flat, largely due to lower margin requirements and an incentivization program.
The company's current cost increase projections align with what was seen in Q1, which is below €2.5 billion.
Business Progress:
The company is making progress with its Horizon 2026 strategy, with the consolidation of SimCorp resulting in new client wins and expanded contracts with existing clients.
Deutsche Börse is advancing well with its post-merger integration project and is on track to deliver synergies.
Plans are underway to expand activities in North America, aided by the appointment of a new Head of Americas at SimCorp.
The company is also forecasting gains in annual recurring revenue, targeting a midpoint growth of 15% by end of Q1.
While growth in the Investment Management Solutions (IMS) business has slowed due to asset manager and hedge fund consolidation, the ESG component of IMS continues to exhibit solid double-digit growth.
Deutsche Börse is actively integrating more clients into its SimCorp SaaS platform, with major client growth anticipated in Q4 due to strong seasonality. Its service, AIM, is expected to grow at a double-digit pace, primarily driven by passive investment.
More details: DEUTSCHE BOERSE AG IR
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