* Q2 EBIT 235.8 mln euros after 256.3 mln yr-earlier
* Q2 net profit 159.3 mln euros after 171 yr-earlier
* Q2 revenue of 488 mln euros after 497 mln yr-earlier
* CFO confirms 2014 outlook
(Adds details, context)
FRANKFURT, July 24 Deutsche Boerse
reported an 8 percent drop in second-quarter operating profit as
sluggish trading of stocks and derivatives weighed on the
exchange operator's revenues.
Earnings before interest and tax (EBIT) came in at 235.8
million euros ($318 million) in the second quarter, in line with
an average expectation of 234 million euros in a Reuters poll of
banks and brokerages.
Net profit fell 8 percent to 159 million euros, while
revenues were down 2 percent at 488 million euros.
Deutsche Boerse, like other exchanges, is suffering from low
trading volumes as new bank regulation has forced trading desks
to put up more collateral for big bets and as banks cut back
their trading operations.
Trading activity also has remained subdued in Deutsche
Boerse's home market, despite political crises in the Ukraine
and the Middle East.
Trading volatility in Germany is hovering near
historic lows, which discourages activity particularly from
high-frequency traders, who make up more than 40 percent of
trading volume on the Frankfurt Stock Exchange, traditionally
seek to exploit spikes and slides in the stock market.
"Second-quarter results were negatively impacted by the low
equity market volatility and extremely low interest rates,"
Deutsche Boerse Chief Financial Officer Gregor Pottmeyer said in
a statement on Thursday, adding the group considered itself in a
good position to meet its 2014 targets.
Deutsche Boerse is targeting full-year revenues of between
1.9 billion euros and 2.1 billion euros, adjusted operating
profit of between 850 million and 1.05 billion euros, and
adjusted net profit of 600-750 million euros.
After a strong start into the year, Deutsche Boerse had been
seen expected t reach the upper end of the ranges, but it is now
seen as hitting the middle.
Separately, Deutsche Boerse said that it would propose to
the 2015 annual general meeting to elect Amy Yok Tak Yip from
Hong Kong-based RAYS Capital Partners to the supervisory board.
Yip has previously worked for the Hong Kong Monetary Authority
and DBS Bank.
($1 = 0.7424 Euros)
(Reporting by Arno Schuetze, editing by Edward Taylor and Jane