Deutsche Börse remains profitable and continues to grow - Theodor Weimer's strategy is having an impact.

Deutsche Börse remains profitable and continues to grow - Theodor Weimer's strategy is having an impact.

According to the FAZ report, Deutsche Börse remains one of the most profitable companies in the DAX and continues to grow strongly. The company's share price rose by 4 percent after the announcement of the “Horizon 2026” strategy. The expensive takeover under Theodor Weimer, CEO of Deutsche Börse, initially caused concern among investors. But Weimer made it clear that the exchange is capable of continuing to generate operational profit every year and announced no further acquisitions until the end of 2024. The presentation made it clear that the focus is on the strategic benefits of the acquisitions, in particular the broader positioning of the stock exchange, a targeted takeover of the American data provider ISS and the Danish software specialist Simcorp. These measures have made the stock exchange more independent of share prices and market sentiment and increased the share of revenue from data, indices and services. In contrast, the proportion of fluctuating sales from trading will decrease. The exchange intends to increasingly focus on derivatives, commodities and currencies, while the equities business is expected to continue to stagnate. The profit sharing to shareholders is to be reduced in the coming years and a share buyback program is to be started.

This strategy reflects the stock market's desire to focus more on profitable business areas while ensuring solid returns for shareholders. The focus on independent revenue sources, strengthening the operating profit margin and the planned expansion into the digital securities business send a positive signal to investors and market participants. It can be assumed that Deutsche Börse's strategic orientation will lead to sustainable growth and stability in the long term.

Source: www.faz.net