Deutsche Börse (DB1) Q4 2024 earnings summary

Executive summary

• Achieved total net revenues of €5.8 billion in 2024, up 15%, exceeding guidance, with 8% organic and 7% M&A-driven growth; EBITDA rose 15% to €3,396 million, and net profit grew 13% to €1,948.5 million.

• Strategic initiatives under Horizon 2026 are on track, with segment set-up completed, €55 million cost synergies realized, and digital leadership advanced with 60% cloud adoption.

• Proposed a €4 per share dividend for 2024 (+5%) and a €500 million share buyback for 2025, with total shareholder distribution to exceed €1.2 billion.

• All segments contributed to organic growth, with standout performance in Commodities and Securities Services.

Financial highlights

• Net revenue reached €5,828.5 million in 2024, up 15% year-over-year; net revenue excluding treasury result at €4,779 million (+16%).

• EBITDA for 2024 was €3,395.6 million (+15%), and net profit rose 13% to €1,948.5 million; cash EPS was €11.36, up 14%.

• Q4 2024 net revenue grew 8% year-over-year to €1,547.8 million; EBITDA increased 15% to €870.4 million.

• Operating costs increased 17% to €2,469.2 million, mainly due to SimCorp acquisition; organic cost growth was 3%.

• Treasury result for 2024 was €1,050 million (+9%).

Outlook and guidance

• 2025 guidance: net revenue without treasury result around €5.2 billion, EBITDA around €2.7 billion; treasury result expected to exceed €0.8 billion.

• Targeting 8% average annual net revenue growth without treasury result through 2026; segment CAGR targets: IMS +9%, Trading & Clearing +8%, Fund Services +11%, Securities Services +7%.

• Operating costs expected to rise by about 3% in 2025; tax rate expected at 27%.

• Dividend payout ratio set at 30%-40%, with a commitment to a continuously increasing dividend per share.