UPDATE 1-Deutsche Boerse swings to Q4 profit

Mon Feb 13, 2012 1:57pm EST

* Deutsche Boerse offers dividend of 3.30 a shr

* Says higher payout ratio may be sustainable

* Boerse remains on lookout for partnerships

FRANKFURT, Feb 13 (Reuters) - Deutsche Boerse attempted to placate shareholders with a special dividend and rosy outlook for 2012 after one-off charges dampened fourth quarter profits in the wake of its failed attempt to buy NYSE Euronext.

The Frankfurt-based exchange operator swung back to a fourth-quarter profit thanks to rigorous cost-cutting and slightly higher revenue as volatile market conditions boosted derivatives trading and post-trade processing.

Earnings before interest and taxes (EBIT) climbed to 228 million euros in the fourth quarter from a 219 million euros loss in the same period a year earlier, the Frankfurt-based stock and derivatives exchange operator said on Monday.

Deutsche Boerse had been expected to post earnings before interest and tax (EBIT) of 258 million euros, a Reuters poll showed.

Deutsche Boerse said it expected to continue to grow organically in 2012. "Our outlook for 2012 is positive," Chief Executive Reto Francioni said in a statement.

Francioni said the company was still on the lookout for strategic partnerships after Brussels regulators scotched a deal with NYSE Euronext earlier this month.

"After the EU Commission's decision, our view is exclusively forward. We will now accelerate our growth strategy with an offensive on unregulated and unsecured markets, an extension of our leadership role in technology and market data, and by partnering further with infrastructures and customers in growth areas and regions," Francioni said.

The costs of the failed NYSE Euronext deal amount to 82.2 million for 2011, Deutsche Boerse said. Around 30 million euros of this fall into the fourth quarter.

In addition to a regular dividend payment of 2.30 euros a share, Deutsche Boerse proposed a special dividend of 1.00 euros a share, adding the increase was sustainable and may lead to further payouts going forward.

For the second half of 2012, Boerse planned share buybacks of up to 200 millon euros, the company said.

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