With its purchase of FX platform operator 360T in Q4 2015, Deutsche Börse has issued its first financial report since the closing of the deal. Purchased for €725 million, operationally, 360T is expected to play an important role for Deutsche Börse as it increases available asset types trading on electronic marketplaces. In addition, the Exchange operator has floated the idea of adding FX derivatives to the 360T platform.
According to Deutsche Börse, the firm has a mid-term target of €400-600 million in structural revenue opportunities above the €2.367 billion in revenues the firm reported during 2015. Of those goals, Deutsche Börse stated to shareholders that it expects 360T to provide over €100 million in annual revenues. While the firm doesn’t provide complete breakdowns of net profit per sector, it has stated that EBIT for 360T is expected to be around 50% of revenues.
Source: Deutsche Börse presentation
For 360T, hitting the €100 million target will require a 50% increase in revenues from 2015’s level. According to Deutsche Börse, 360T registered €65 million in revenue during 2015, a 10% increase from €59 million in 2014. For the just completed Q4 2015 period, 360T revenues were €16 million according to a Deutsche Börse spokesperson.
Looking ahead, to achieve the €100 target, Deutsche Börse will be looking to integrate 360T’s services to many of their existing customers that have a need for FX trading. For existing users of 360T, of which Deutsche Börse executives recently stated that the platform has between 80% to 90% penetration in the “German speaking world”, the firm has plans to offer post-trade services from their Clearstream unit.
