Deutsche Boerse Earnings: Good Performance and Delayed Interest Rate Cuts Result in Higher Guidance

Deutsche Boerse posted a good second quarter, supported by the SimCorp acquisition and good underlying growth dynamics. On an organic basis, revenue grew 8% compared with the same quarter a year ago. Operating expenses increased 6%, driven by inflation and investments. EBITDA grew 12% on an organic basis, aided by revenue outpacing costs. As a result of the good performance in commodities and higher net interest expectations as interest rate cuts are being pushed out, the exchange group raised its revenue guidance to above EUR 5.7 billion from above EUR 5.6 billion and its EBITDA guidance to above EUR 3.3 billion compared with above EUR 3.2 billion previously. We maintain our EUR 201 per share fair value estimate and wide moat rating.