Thursday 14 February 2019 10:06 am | Updated: Monday 03 June 2019 1:05 am

Deutsche Boerse profits plunge 35 per cent and outlook for 2019 ‘more subdued’

Deutsche Boerse said profits plunged 35 per cent in the fourth quarter and that its outlook for 2019 had become “more subdued” due to the global slowdown.

The German stock exchange operator blamed a rise in operating costs – mainly due to efficiency measures and litigation – after it reported net profit of €140m (£123m) compared to €213.6m the previous year.

Full year profit dropped six per cent to €852.5m and the company said its expectations for 2019 had softened as political uncertainty and economic risks grew.

It maintained a net profit growth target of 10 per cent this year but warned it could be higher or lower depending on “equity market volatility.”

Chief executive Theodor Weimer said: “Given the economic environment, we are taking a slightly more subdued stand on our expectations for the current business year.

“Cyclical risk are increasing and political risks are difficult to predict.”

Deutsche Boerse maintained that its medium term target of 10 to 15 per cent growth to 2020 were also on track.

Weimer took over the role from Carsten Kengeter in the wake of an insider trading scandal and following a botched merger with the London Stock Exchange.

Following the results, Weimer told reporters major, transformational mergers were “out of the question” and that the focus would be on consolidating asset classes – fixed income, commodities and currencies.

The board also proposed a 10 per cent dividend increase to €2.70 per share, which is set to be approved at the company’s AGM on 8 May.