* Deutsche Boerse to seek 70 mln eur in annual cost savings
* To propose dividend of 2.10 eur, down from 2.30 eur in
* Cost savings needed to pay for expansion
FRANKFURT, Feb 5 Deutsche Boerse said
it would cut costs in response to lower trading activity and
pledged to use future savings to pay for an expansion push into
Asia and other markets.
The Frankfurt-based exchange operator said its revenue fell
14 percent in 2012, mirroring a trend seen at rival and former
merger partner, NYSE Euronext which also announced a
cost reduction plan.
Deutsche Boerse said adjusted preliminary net income for the
year fell 22 percent to 660 million euros ($895
million)following an 18 percent fall in derivatives trading
volumes and a 23 percent drop in turnover on cash markets.
In response, Deutsche Boerse said it planned to eke out
additional annual cost savings of 70 million euros.
"This ensures the necessary flexibility to continue the
growth and infrastructure investments," Boerse said in a
statement on Tuesday, adding that Asia would be in focus for
Analysts at DZ Bank welcomed the move, saying that cost
savings were at the "upper end" of expectations. Deutsche
Boerse's shares gained 0.7 percent by 1400 GMT.
Last month, Reuters reported that Deutsche Boerse was
mulling another round of cost cuts to offset a slump in trading
The company said it would not resort to forced redundancies
but warned that the restructuring would lead to costs of between
90 million euros to 120 million euros.
The operator of the Xetra stock exchange and the Eurex
derivatives platform said it would pay a dividend of 2.10 euros
a share for 2012, in line with recent years but below the 2.30
euros a share sweetened dividend paid for 2011 in the aftermath
of the failed NYSE Euronext deal.
Deutsche Boerse said its earnings before interest and taxes
(EBIT) for 2012 were around 1 billion euros.
In October, Deutsche Boerse warned investors it would not
meet full-year revenue and profit targets including an EBIT
range of between 1.2 billion euros to 1.35 billion euros.
Deutsche Boerse released preliminary figures ahead of its
annual press conference, scheduled for February 20.