German stock exchange continues to wait for trend reversal

german stock exchange continues to wait for trend reversal

Yields shrank again, although the mood on the stock exchanges was actually better than it had been for a long time. In the first three months of this year, the leading index, the dax, rose by 2.4 percent to just under 7800 points.

This is only reflected to a limited extent in the figures for the german stock exchange. The company, like many other international borsen operators, has long struggled with declining revenues. This is because many investors are unsettled by the euro debt crisis and unclear future regulations and are holding back on trading despite the significant rise in share prices. At least, the proceeds increased compared to the second half of 2012.

At the beginning of the year, the operating profit (EBIT) of the german stock exchange fell by a good quarter compared with the prior-year period to 192 million euros. The bottom line was 121.2 million euros, almost 30 percent less than a year ago. The net loss shrank by just under five percent to 484.3 million euros, partly due to the low interest rates in the borse’s banking business.

The forecast remained unchanged. German stock exchange expects net losses of between 1.8 and 2 billion euros this year. EBIT is expected to be in the range of 0.8 to one billion euros, with a surplus of 500 to 700 million euros. In 2012 as a whole, net income slumped by a quarter to 645 million euros, while net income fell by 9 percent to 1.9 billion euros.

In february, CEO reto francioni announced that he would fight the difficult conditions with a new savings program. It is expected to print costs by around 70 million euros by 2016. 250 of the group’s current 3700 jobs are on the line. But first the conversion will put pressure on profits. The company expects the savings program to cost a total of 90 to 120 million euros. Provisions of about 70 million euros have now been booked.

Francioni had originally sought salvation in a merger with the new york stock exchange NYSE euronext. But this attempt failed a year ago because of the EU commission’s veto. Since this defeat, francioni has been trying to develop the german stock exchange alone. When the U.S. Futures and options exchange CME recently auditioned for a possible merger in frankfurt, it was met with a refusal.

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