German Stock Exchange, Deutsche Börse, thrives on market turbulence during the second quarter
In a recent financial update, Deutsche Börse, the German stock exchange group, has reported a 3.8% increase in operating profit (EBITDA) for the second quarter, reaching 880 million euros. This growth comes alongside a slight rise of 2.8% in operating costs, which is expected to result in an overall increase in operating profit (EBITDA) for the quarter.
The surge in operating profit places Deutsche Börse on track to meet its annual targets, as the company continues to perform well in the ever-evolving financial market. The trading volume on Deutsche Börse's cash markets has experienced a significant boost, with June's volume reaching 138 billion euros, marking a 29.3% increase from the previous year. May's trading volume was even more impressive, reaching 152.2 billion euros, a 33.3% increase from the same period in 2020.
One of the key areas of focus for Deutsche Börse is the future of its subsidiary, ISS Stoxx. Despite the decision regarding General Atlantic's involvement in ISS Stoxx remaining undecided, Deutsche Börse is preparing for a significant initial public offering (IPO) of ISS Stoxx, which could potentially raise up to $1 billion. This move comes amidst a challenging IPO environment, but ISS Stoxx's offering is expected to be one of the notable offerings in the second half of 2025, alongside other German and European companies.
In addition to its role in Deutsche Börse's index business, ISS Stoxx is actively involved in restructuring index compositions, such as those for the SDAX and TecDAX. The IMS segment (data, index, and software business) is likely to have performed better in the second quarter than in the previous year, with analysts predicting a 4.2% increase in revenue.
Meanwhile, Eurex Clearing AG, a part of Eurex Frankfurt AG, is progressing with the technical upgrade of its C7 clearing platform. The company plans to launch C7 Release 12.0 in production on November 10, 2025. This release includes various enhancements related to fee code adjustments, corporate action processing harmonization, and reporting changes. However, the search for a new CEO for Eurex Clearing AG is ongoing, with no information available at this time.
In the securities services business, analysts expect a 5.5% decrease in revenue for the second quarter, while the fund services business is projected to generate 132 million euros, an increase of 9% compared to the previous year. Overall, analysts anticipate an increase in net profits and a slight increase in earnings for the second quarter.
In April, the trading volume on Deutsche Börse's cash markets was 188.4 billion euros, a 58% increase from the comparable period of the previous year. As Deutsche Börse continues to navigate the financial market, it remains committed to delivering strong performance and driving growth for its subsidiaries and businesses.
Deutsche Börse's impressive 29.3% increase in June's trading volume on cash markets, when compared to the previous year, signifies a boost in business operations. This surge in trading volume could potentially contribute to the overall financial performance of the company, particularly as it prepares for a significant initial public offering (IPO) of its subsidiary, ISS Stoxx, which could raise up to $1 billion.
