Deutsche Boerse lays out growth plans under new boss

FRANKFURT (Reuters) - Deutsche Boerse (DB1Gn.DE) on Wednesday announced a framework for its strategy under its new chief executive that aims to make the German company the leading European exchanges group, as it reported an 11 percent drop in net profit in the first quarter.

Theodor Weimer, who took over on Jan. 1, is seeking to open a new chapter after Deutsche Boerse was entangled in an insider trading scandal, a failed merger with its London counterpart and a profit warning last year.

The roadmap, finalised on Wednesday at a meeting of the supervisory board, involves accelerated growth in "selected business areas" and increased investment in new technologies, the company said.

Unspecified cost cuts will finance the growth and investments, Deutsche Boerse said, although it also said that the number of employees would rise during the period.

Net profit in the first quarter was 249 million euros ($303 million), down from 280.1 million euros a year earlier. The result is less than the 254 million euros forecast by analysts in a Reuters poll.

Revenue rose 11 percent to 691.6 million euros in the first quarter, better than the 679 million euros forecast by analysts.

Deutsche Boerse said it expects revenue to increase by at least 5 percent per year through 2020, and it is forecasting increases in net profit of around 10 to 15 percent each year during the same period.

The targets are more or less an extension of the company's 2018 goals for the years 2019 and 2020.

The plans and earnings were revealed ahead of an expected management board reshuffle.

(Reporting by Tom Sims, editing by Larry King)