Deutsche Boerse Earnings: Closing a Strong Year as Simcorp Contributes for First Time

Deutsche Boerse reported a good set of fourth-quarter results. In the spotlight were the better-than-expected contributions from Simcorp, which Deutsche Boerse added to its roster of data-related businesses in the fourth quarter. Other businesses performed largely within our expectations, as DB continued to benefit from both structural and cyclical tailwinds. A storyline that we saw throughout the year and which also shone again in the fourth quarter was the impact of higher interest rates on the business. While only marginally lower, higher net interest income, lower cash balances, and increased demand for interest-rate derivatives proved to be a boon for Deutsche Boerse again. Revenue for the group grew 17% to EUR 1,437 million in the quarter, which translates to 5% organic growth if excluding the impact of the Simcorp addition. EBITDA grew 23%, or 13% organically. We maintain our wide economic moat rating but raise our fair value estimate to EUR 201 per share from EUR 180 after updating our model with 2023 figures.