DBOEY - Deutsche Börse AG (DBOEY) Q4 2023 Earnings Call Transcript
2024-02-08 14:45:18 ET
Deutsche Börse AG (DBOEY)
Q4 2023 Earnings Conference Call
February 08, 2024, 08:00 AM ET
Company Participants
Jan Strecker - Director of Investor Relations
Theodor Weimer - Chief Executive Officer
Gregor Pottmeyer - Chief Financial Officer
Conference Call Participants
Arnaud Giblat - Exane BNP Paribas
Michael Werner - UBS
Bruce Hamilton - Morgan Stanley
Ian White - Autonomous Research
Enrico Bolzoni - JPMorgan
Andrew Coombs - Citi
Hubert Lam - Bank of America
Roland Pfander - ODDO BHF
Alberto Nigro - Mediobanca
Thomas Mills - Jeffries
Jim Downs - Dise Bank
Presentation
Operator
Good afternoon, ladies and gentlemen, and welcome to the Deutsche Borse AG Analyst and Investor Conference Call regarding the Q4 2023 results and full year 2023 preliminary financial results. At this time, all participants have been placed on a listen-only mode and the floor will be open for your questions following the presentation.
Let me now turn the floor over to Mr. Jan Strecker.
Jan Strecker
Welcome, ladies and gentlemen, and thank you for joining us today to go through our preliminary fourth quarter 2023 results. With me are Theodor Weimer, CEO, and Gregor Pottmeyer, CFO. Theodor and Gregor will take you through the presentation today. And afterwards, we will be happy to take your questions. The link to the presentation materials for this call has been sent out via email and they can also be downloaded from the IR section of our website. As usual, this conference call will be recorded and will be available for replay afterwards.
With this, let me now hand over to you, Theodor.
Theodor Weimer
Thank you, Jan. Welcome, ladies and gentlemen. Let me start today's call by commenting on the financial performance in 2023 and the outlook for 2024. Afterwards, Gregor will take you through our results in greater detail, as always. .
The development in 2023 significantly exceeded our original expectations at the beginning of the year. The net revenue guidance we published one year ago was a range of EUR 4.5 billion to EUR 4.7 billion. After three revisions of the guidance throughout the year, we have now achieved net revenues of close to EUR 5.1 billion.
Reliable and consistent factor of our net revenue growth continued to be secular growth, which amounted to 5%. Main drivers there, our analytics business, continued strong performance in repo, further double-digit growth in commodities on top of a very strong year 2022, as well as new clients in FX.
Besides secular growth, key driver of our organic growth was the strong increase of the net interest income. Despite significantly lower equity market volatility compared to 2022, higher interest rates helped us to achieve an additional 7% cyclical net revenue growth. Last but not least, the consolidation of SimCorp in the fourth quarter contributed around EUR 200 million net revenue or 5% net revenue growth from M&A for the full year.
This was above our expectations because of the high level of new software subscriptions towards the end of last year. As we have guided for throughout the last year, organic operating cost growth has decelerated from quarter to quarter in 2023. And we even achieved almost flat organic operating cost in the fourth quarter despite higher-than-expected provisions for variable and share-based compensation given the strong development over the year 2023....
Deutsche Börse AG (DBOEY) Q4 2023 Earnings Call Transcript