German exchange operator, Deutsche Börse AG has released its preliminary Q4, FY 18 and full year 2018 financial report. The exchange operator during the quarter has posted worse than expected fall in net profits and has also presented a grim outlook for 2019 due to a slowdown in the global economy.
The net profits during the fourth quarter came in at €140 million (£123 million), which is 35 per cent lower compared to €213.6 million the previous year. The operator blamed the decrease in net profits on rising operating costs, mainly due to efficiency measures and litigation.
The company has softened its 2019 outlook mainly due to political uncertainty and growth in economic risks. It maintained a revenue slowdown to 5 per cent and net profit growth forecast to 10 per cent this year but could deviate depending on equity market volatility.
Although, Deutsche Börse AG maintained that the medium-term growth target of 10 to 15 to 2020 is well on track.
Chief executive Theodor Weimer said on the growth forecast and uncertainty ahead:
“Deutsche Börse Group is looking back on a really good year”, pointing towards a 13 per cent rise in full-year revenue year-on-year and a 17 per cent increase in profits to €1.7bn.
“Given the economic environment, we are taking a slightly more subdued stand on our expectations for the current business year. Cyclical risks are increasing, and political risks are difficult to predict.”
The company has added that it plans to raise the payouts per share to €2.70 in 2018, up from €2.45 in the previous year.