FLOW TRADERS
REPORTS MARKET SHARE GAINS IN 2Q17 AND ANNOUNCES INTERIM DIVIDEND
OF €0.30
Amsterdam, the Netherlands, 28 July 2017 - Flow Traders N.V.
(Euronext: FLOW) today announced its 2Q17 results (unaudited),
stating that:
-
Global ETP Assets under
Management (AuM) reached the highest level on record end 2Q17 (in
US$) with continuous inflows
-
Products in which Flow Traders
is a registered market maker rose to 5,274 (+27% YTD, +6%
Q-o-Q)
-
Flow Traders 2Q17 ETP Value
Traded rose to € 184.7bn (+6% Q-o-Q), outperforming the market in
EMEA and the Americas. This led to an increase of our ETP Value
Traded by 21% Y-o-Y in 1H17 where the market ETP Value Traded
declined 12% Y-o-Y
-
Flow Traders 2Q17 Net Trading
Income (NTI) reached € 46.7m, reflecting the ongoing slow market
conditions and product mix traded
-
Flow Traders 2Q17 EBITDA margin
came in at 36% with costs developing as expected in 2Q17 as Flow
Traders continues to invest in its people, products and
technology
-
Total Capital position remained
solid after final FY16 dividend payment in 2Q17
-
Interim dividend for FY17 is
set at € 0.30, stock will trade ex-dividend on 4 August
-
No loss days so far in 2017,
Flow Traders now has 38 consecutive months without a loss
day
-
FTEs grew 8% YTD to
369
Overview Consolidated Quarterly
and Year-to-date Results Flow Traders
€million, unless otherwise stated |
2Q17 |
1Q17 |
Change |
1H17 |
1H16 |
Change |
|
|
|
|
|
|
|
Net Trading Income |
46.7 |
48.3 |
(3%) |
95.0 |
132.5 |
(28%) |
EMEA (Europe) |
35.0 |
30.6 |
+14% |
65.7 |
83.5 |
(21%) |
Americas |
8.3 |
13.1 |
(37%) |
21.3 |
35.9 |
(41%) |
APAC (Asia) |
3.4 |
4.6 |
(27%) |
8.0 |
13.1 |
(39%) |
EBITDA |
17.0 |
18.2 |
(6%) |
35.2 |
65.1 |
(46%) |
Net Profit |
12.5 |
13.6 |
(9%) |
26.1 |
51.9 |
(50%) |
EBITDA Margin |
36% |
38% |
(2%) |
37% |
49% |
(12%) |
EPS (EUR) |
0.27 |
0.29 |
(9%) |
0.56 |
1.12 |
(50%) |
|
|
|
|
|
|
|
Flow Traders ETP Value Traded
(€bn) |
184.7 |
174.8 |
+6% |
359.5 |
298.1 |
+21% |
EMEA (Europe) |
112.4 |
106.2 |
+6% |
218.6 |
191.0 |
+14% |
Americas |
66.5 |
63.2 |
+5% |
129.7 |
88.4 |
+47% |
APAC (Asia) |
5.8 |
5.4 |
+7% |
11.3 |
18.7 |
(40%) |
|
|
|
|
|
|
|
Market ETP Value Traded (€bn) |
4,841 |
4,899 |
(1%) |
9,740 |
11,114 |
(12%) |
EMEA (Europe) |
226 |
233 |
(3%) |
460 |
507 |
(9%) |
Americas |
4,137 |
4,255 |
(3%) |
8,392 |
9,590 |
(12%) |
APAC (Asia) |
477 |
410 |
+16% |
887 |
1,017 |
(13%) |
Management Board
Statements
Co-CEO Dennis Dijkstra stated: "2017 so far
has proven to be a year with two faces; subdued trading activities
and a continuous underlying growth trend in the ETP industry. The
global ETP market again reached new highs, as the total ETP AuM
continued to grow in 1H17, crossing the US$ 4 trillion level, and
the number of ETP listings continued to grow to over 10,250.
However, following the continued decline in volatility and velocity
in 1H17, we touched the lowest levels of market activity in almost
30 years, impacting the ETP Value Traded in the market and of Flow
Traders. Amid such market circumstances, Flow Traders achieved an
NTI in 1H17 of
€ 95.0m while it grew its volumes traded by 21% in 1H17
year-on-year. We generated € 0.56 EPS and have not had a loss day
for over 38 months now. Our FTE grew 4% in the second quarter and
to continue to stimulate our team driven approach and
entrepreneurship and increase alignment with our shareholders we
will introduce a new employee equity participation plan in 2017. As
a part of this plan we will buy shares in the market up to 1
million euro.
With the markets' continued focus
on developments like MiFID II and further improvements of the
trading infrastructure globally, Flow Traders continues to grow its
global presence in a cost conscious way to be able to capture
further upside when markets return to their historic average
activity level".
Co-CEO Sjoerd Rietberg added: "In 2Q17 Flow Traders' ETP Value
Traded continued to outperform the market, reaching € 185bn, mainly
driven by EMEA and the Americas. Our 2Q17 NTI of € 46.7m is a
reflection of the product mix traded under the current subdued
market circumstances.
Regionally, Europe stood out this
quarter, as we gained market share and improved margins there. In
the US and Asia, market sentiment remained lacklustre, impacting
the product mix traded and market spreads, and as such, our Revenue
Capture as well. In Asia, the market developments were influenced
by a fluctuation in the volumes traded in the Chinese markets.
Filtering out that impact, our performance was more in line with
the market in Asia. In the US, we have started to trade with more
US counterparties as our institutional trading setup has been
tested, improved and is now being rolled out, as was announced at
the end of 2016. Markets were rather slow in 2Q17, impacting
Revenue Capture substantially. Flow Traders US managed to grow its
presence despite these market circumstances, and its market share
continued to grow to above 2% on-exchange.
All in all, 1H17 results are a
reflection of the market circumstances we are in. In these markets
we continued to grow our team and infrastructure, drove initiatives
such as the rollout of OTC in the US and the new Hong Kong office
in Asia, and we continued to grow our liquidity providerships and
the number of products we trade. We keep working to improve our
performance every day and we are convinced that the long term
growth path we are on will deliver a strongly improved performance
when markets become more active again."
CFO Marcel Jongmans commented: "As we highlighted during the
Analyst Day, fixed costs have developed as expected so far in 2017,
which is why we reiterate our guidance that the fixed costs will
grow in the range of 15-20% in 2017. Net Profit came in at € 12.5m
in 2Q17, leading to a Net Profit for 1H17 of € 26.1m which
translates to an EPS of € 0.56. We continued to invest in our long
term growth strategy during the period and still delivered an
EBITDA margin of 37% year-to-date. This allows us to pay an interim
dividend of € 0.30 over FY17. We are confident that Flow Traders
will keep growing in line with the long term growth trend, while
maintaining cost conscious in order to support our ambition of
becoming the leading global ETP liquidity provider".
Current Trading
and Outlook
In line with market expectations,
the ETP market continued to grow in global Assets under Management,
a trend that is expected to continue in 2017 and beyond. The shift
in assets from active management funds towards the passive industry
is ongoing and strongly drives ETP growth across all asset classes.
Regulation, such as MiFID II is expected to bring more
transparency, which will benefit the ETP market as such as well. We
will continue to grow organically by increasing our coverage within
the ETP space, whilst pursuing our goal to grow our NTI
structurally and to outperform the growth in the Market ETP Value
Traded. As part of our organic growth strategy, we will open a new
office in Hong Kong in 2017 and re-locate our office in New York.
Preliminary Financial Calendar 2H 2017 / 1H
2018
04
August
Ex-Dividend date Interim Dividend FY17
07
August
Record date Interim Dividend FY17
09
August
Payment date Interim Dividend FY17
03
October
Start Silent Period ahead of 3Q17 Trading update
24 October
3Q17 Trading update
12 January
2018
Start Silent Period ahead of FY17 Results
09 February
2018
FY17 Results
As of 2018, Flow Traders will move to interim
reporting. This means that Flow Traders will release a trading
statement only in the first and third quarters of each financial
year going forward. Half Year and Full Year reports continue to
take place as usual. The company remains committed to the highest
level of disclosure and engagement with its stakeholders.
Analyst Conference Call and
Webcast
The analyst conference call on the
results will be held at 10:00 am Amsterdam Time on Friday 28 July
2017. The presentation will also be accessible via
www.flowtraders.com/investors, where the presentation can be
downloaded and the conference call can be followed via a
listen-only audio webcast. A replay of the
conference call will be available on the company website for at
least 90 days.
Contact Details
Flow Traders N.V.
Serge Enneman / Manager Investor Relations
Phone: +31 20 7996799
Email:
Investor.relations@flowtraders.com
Please visit
www.flowtraders.com/investors for more information and for the full
version of the press release / full year report, including all
financial tables, explanatory notes and the responsibility
statement by the executive board as compulsory under the EU
Transparency Directive.
Consolidated P&L,
simplified
Consolidated (in €m) |
2Q17 |
1Q17 |
Change |
YTD 2017 |
YTD 2016 |
Change |
Net Trading Income |
46.7 |
48.3 |
(3%) |
95.0 |
132.5 |
(28%) |
Employee expenses (fixed) |
7.6 |
7.7 |
(2%) |
15.4 |
12.4 |
23% |
Employee expenses (var) |
8.6 |
9.3 |
(8%) |
17.9 |
32.9 |
(46%) |
Technology expenses |
9.5 |
9.2 |
3% |
18.8 |
17.0 |
10% |
Other expenses |
3.9 |
3.8 |
4% |
7.7 |
5.0 |
54% |
Operating Expenses |
29.7 |
30.1 |
(1%) |
59.7 |
67.4 |
(11%) |
EBITDA |
17.0 |
18.2 |
(6%) |
35.2 |
65.1 |
(46%) |
Depreciation/Amortisation |
1.7 |
1.7 |
|
3.4 |
3.2 |
|
Write offs, tangible assets |
0.0 |
0.0 |
|
0.0 |
2.6 |
|
Results subsidiaries |
0.0 |
0.0 |
|
0.0 |
0.0 |
|
Profit Before Tax |
15.3 |
16.5 |
(7%) |
31.8 |
59.3 |
(46%) |
Tax |
2.8 |
2.9 |
|
5.7 |
7.4 |
|
Net Profit |
12.5 |
13.6 |
(9%) |
26.1 |
51.9 |
(50%) |
EPS (in €) |
0.27 |
0.29 |
|
0.56 |
1.12 |
|
EBITDA margins (%) |
36% |
38% |
|
37% |
49% |
|
Development of Regulatory Capital
until end 1H 2017
|
30 Jun 2017 |
31 Dec 2016 |
30 Jun 2016 |
31 Dec 2015 |
30 Jun 2015 |
31 Dec 2014 |
Total Trading Capital |
273.0 |
343.0 |
298.9 |
338.8 |
280.3 |
204.3 |
Regulatory Capital |
258.0 |
270.1 |
252.2 |
246.6 |
202.2 |
142.8 |
Regulatory Required Capital |
157.8 |
168.2 |
136.7 |
94.0 |
123.5 |
84.3 |
Important legal
information
This press release is prepared by
Flow Traders N.V. and is for information purposes only. It is not a
recommendation to engage in investment activities and you must not
rely on the content of this document when making any investment
decisions. The information in this document does not constitute
legal, tax, or investment advice and is not to be regarded as
investor marketing or marketing of any security or financial
instrument, or as an offer to buy or sell, or as a solicitation of
any offer to buy or sell, securities or financial instruments.
The information and materials
contained in this press release are provided 'as is' and Flow
Traders N.V. or any of its affiliates ("Flow Traders") do not
warrant the accuracy, adequacy or completeness of the information
and materials and expressly disclaim liability for any errors or
omissions. This press release is not intended to be, and shall not
constitute in any way a binding or legal agreement, or impose any
legal obligation on Flow Traders. All intellectual property rights,
including trademarks, are those of their respective owners. All
rights reserved. All proprietary rights and interest in or
connected with this publication shall vest in Flow Traders. No part
of it may be redistributed or reproduced without the prior written
permission of Flow Traders.
This press release may include
forward-looking statements, which are based on Flow Traders'
current expectations and projections about future events, and are
not guarantees of future performance. Forward looking statements
are statements that are not historical facts, including statements
about our beliefs and expectations. Words such as "may", "will",
"would", "should", "expect", "intend", "estimate", "anticipate",
"project", "believe", "could", "hope", "seek", "plan", "foresee",
"aim", "objective", "potential", "goal" "strategy", "target",
"continue" and similar expressions or their negatives are used to
identify these forward-looking statements. By their nature,
forward-looking statements involve known and unknown risks,
uncertainties, assumptions and other factors because they relate to
events and depend on circumstances that will occur in the future
whether or not outside the control of Flow Traders. Such factors
may cause actual results, performance or developments to differ
materially from those expressed or implied by such forward-looking
statements. Accordingly, no undue reliance should be placed on any
forward-looking statements. Forward-looking statements speak only
as at the date at which they are made. Flow Traders expressly
disclaims any obligation or undertaking to update, review or revise
any forward-looking statements contained in this press release to
reflect any change in its expectations or any change in events,
conditions or circumstances on which such statements are based
unless required to do so by applicable law.
Financial objectives are internal
objectives of Flow Traders to measure its operational performance
and should not be read as indicating that Flow Traders is targeting
such metrics for any particular fiscal year. Flow Traders' ability
to achieve these financial objectives is inherently subject to
significant business, economic and competitive uncertainties and
contingencies, many of which are beyond Flow Traders' control, and
upon assumptions with respect to future business decisions that are
subject to change. As a result, Flow Traders' actual results may
vary from these financial objectives, and those variations may be
material.
Efficiencies are net, before tax
and on a run-rate basis, i.e. taking into account the full-year
impact of any measure to be undertaken before the end of the period
mentioned. The expected operating efficiencies and cost savings
were prepared on the basis of a number of assumptions, projections
and estimates, many of which depend on factors that are beyond Flow
Traders' control. These assumptions, projections and estimates are
inherently subject to significant uncertainties and actual results
may differ, perhaps materially, from those projected. Flow Traders
cannot provide any assurance that these assumptions are correct and
that these projections and estimates will reflect Flow Traders'
actual results of operations.
By accepting this document you
agree to the terms set out above. If you do not agree with the
terms set out above please notify
legal.amsterdam@nl.flowtraders.com immediately and delete or
destroy this document.
Market Abuse Regulation
This press release contains information within the
meaning of Article 7(1) of the EU Market Abuse Regulation.
Half Year 2017 report Flow
Traders
Press Release 2Q17 Flow Traders
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Flow Traders NV via Globenewswire
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