* Deutsche Boerse Q4 net loss 33 million euros
* loss due to 415.6 mln eur ISE-related impairment in Q4
* To propose flat dividend of 2.10 euros a share.
(adds background, detail)
FRANKFURT, Feb 15 Deutsche Boerse (DB1Gn.DE)
announced a fresh round of cost cuts after it swung to its first
ever quarterly loss, hit by falling volumes in options and share
trading and a hefty impairment charge at U.S. options arm ISE.
The exchange operator posted a fourth quarter net loss of 33
million euros, compared with a 222 million euros profit in the
year-earlier period. Analysts had nonetheless expected a much
wider loss of 62 million euros. [ID:nLDE6191HW]
Deutsche Boerse aims to attain annual savings of 50 million
euros from 2011 onward by cutting management headcount,
potentially outsourcing further jobs, and investing in new
Boerse said costs would not rise above 1.25 billion euros in
2010, however only when excluding 40 million euros in provisions
related to implementing cost reduction plans.
"We will further expand our clear strengths in technology,
risk management services and product innovation while
maintaining our strict approach to cost management," Chief
Executive Reto Francioni said in a statement.
The Frankfurt-based company blamed a loss before interest
and taxes of 166.3 million euros in the fourth quarter on its
previously announced 415.6 million impairment charge related to
its U.S.-based International Securities Exchange unit.
ISE's daily average trading volume fell 4.7 percent in 2009,
to 960.2 million contracts, but market share rebounded in
January to account for 22.9 percent of overall options trading.
At the start of February, Boerse said that Xetra and floor
trading volumes had rebounded in January. [ID:nWEA8164]
Quarterly revenue fell to 505.4 million euros largely due to
the reluctance of market participants to trade on the cash and
derivatives markets, the company said late on Tuesday.
Its renewed focus on savings comes as rival NYSE Euronext
said earlier this month it expected revenue growth, rather than
cost cuts, to drive earnings this year. [ID:nLDE6180CD]
Rival exchange operators such as the London Stock Exchange
(LSE.L) and Nasdaq OMX Group (NDAQ.O) have seen earnings shrink
as they fought to cut fees in a bid to keep upstart rivals at
bay. [ID:nLDE61F15L] [ID:nLDE61B173] [ID: nN08184802]
While Deutsche Boerse relies less on cash equities trading
than do many other European stock exchange operators,
competition from alternative platforms such as Nomura Holdings
Inc's (8604.T) Chi-X continue to hurt the exchange's equities
trade revenues and its bottom line.
(Reporting by Edward Taylor, Editing by Christiaan Hetzner)