The following is a summary of the Deutsche Börse AG (DBOEY) Q4 2023 Earnings Call Transcript:
Financial Performance:
Deutsche Boerse significantly exceeded original net revenue guidance for 2023, ending the year with close to EUR 5.1 billion.
Secular growth, driven by the analytics, repo, commodities, and FX businesses totaled 5%.
7% of cyclical net revenue growth came from higher interest rates.Inclusion of SimCorp's results boosted overall revenue for the year by EUR 200 million.
The company posted 17% EBITDA growth and proposes a dividend of EUR 3.80 per share, with a payout of around 40%.
A EUR 300 million share buyback program has been initiated.
For 2024, projected net revenue and EBITDA stand at over EUR 5.6 billion and EUR 3.2 billion respectively.
Strong 2023 financial performance with net revenue growth above 17% and the EBITDA margin at 60%.
Business Progress:
Strategic priorities include supporting further secular growth, ensuring success for the new IMS segment, and the application of new capital management frameworks.
Focus will be on deleveraging through the redemption of commercial paper issued for the SimCorp acquisition, improving rating metrics, and completing the current share buyback program.
The company is in a strong position entering 2024, with growth planned across their individual businesses and the scaling of SimCorp.
Robust growth in the new Investment Management Solutions segment due to new client acquisition and existing clients' renewal.
Increase in market share in the European derivatives market attributed to increased market activity by Algo Traders.
The company expects to achieve 60% (EUR 54 million) of the planned EUR 90 million synergies with SimCorp by 2024.
More details: DEUTSCHE BOERSE AG IR
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