FLOW TRADERS 2Q19 NTI € 53.9M, STRATEGY REITERATED TO MAXIMIZE NTI
GROWTH THROUGH SCALE AND EFFICIENCY
FLOW TRADERS 2Q19 NTI € 53.9M, STRATEGY
REITERATED TO MAXIMIZE NTI GROWTH THROUGH SCALE AND
EFFICIENCY Amsterdam, the Netherlands - Flow
Traders N.V. (Euronext: FLOW) today released its unaudited 2Q19
results and its Half Year 2019 report. Highlights are:
- 2Q19 NTI of € 53.9m, against € 63.1m in 1Q19 and € 53.8m in
2Q18
- 1H19 NTI of € 117.0m, against exceptionally high 1H18 driven by
record 1Q18
- Fixed operating expenses up 2% Q-o-Q in 2Q19 and 9% YoY in
1H19, well within annual fixed cost growth guidance
- 2Q19 EBITDA margin at 39%, leading to a 1H19 EBITDA margin of
41%
- Net Profit at € 13.8m in 2Q19 and € 33.0m in 1H19, resulting in
a 1H19 EPS of € 0.71
- Under CRR capital requirements regulation, Flow Traders’ own
funds requirement was € 148m at end June 2019, resulting in excess
capital of € 146m
- Interim dividend for FY19 is set at € 0.35, ex-dividend date
will be 12 August 2019
- Flow Traders will continue to focus on its growth strategy of
gaining scale through diversification and improving efficiency to
maximize NTI growth
- 465 FTEs at end June 2019, up 6.6% against end December
2018
Overview of Flow Traders’ quarterly and Half Year
consolidated results (unaudited)
€million, unless otherwise stated |
2Q19 |
1Q19 |
Q-o-Q Change |
1H19 |
1H18 |
Y-o-Y Change |
|
|
|
|
|
|
|
Net Trading Income |
53.9 |
63.1 |
(15%) |
117.0 |
266.9 |
(56%) |
EMEA (Europe) |
32.1 |
37.5 |
(15%) |
69.6 |
81.9 |
(15%) |
Americas |
15.3 |
17.3 |
(11%) |
32.6 |
167.4 |
(81%) |
APAC (Ex China) |
6.5 |
8.3 |
(21%) |
14.8 |
17.7 |
(16%) |
Fixed operating expenses |
23.9 |
23.4 |
2% |
47.3 |
43.6 |
9% |
EBITDA |
20.9 |
26.8 |
(22%) |
47.7 |
153.3 |
(69%) |
EBITDA Margin |
39% |
42% |
|
41% |
57% |
|
Net Profit |
13.8 |
19.2 |
(28%) |
33.0 |
126.8 |
(74%) |
EPS (EUR) |
0.30 |
0.41 |
(28%) |
0.71 |
2.73 |
(74%) |
|
|
|
|
|
|
|
Flow Traders ETP Value Traded (€bn) |
235.4 |
258.6 |
(9%) |
494.0 |
443,4 |
11% |
EMEA (Europe) |
121.0 |
128.7 |
(6%) |
249.7 |
253.7 |
(2%) |
Americas |
105.0 |
121.2 |
(13%) |
226.2 |
173.1 |
31% |
APAC (Ex China) |
9.3 |
8.7 |
7% |
18.1 |
16.6 |
9% |
|
|
|
|
|
|
|
Flow Traders’ non ETP Value Traded (€bn) |
694 |
738 |
(6%) |
1,433 |
1,288 |
11% |
|
|
|
|
|
|
|
Market ETP Value Traded (€bn) |
5.842 |
6,093 |
(4%) |
11,934 |
12,084 |
(1%) |
EMEA (Europe incl MTF) |
355 |
355 |
0% |
710 |
720 |
(1%) |
Americas |
5,002 |
5,281 |
(5%) |
10,283 |
10,237 |
0% |
APAC |
485 |
456 |
6% |
941 |
1,127 |
(16%) |
APAC (ex China) |
209 |
217 |
(4%) |
426 |
509 |
(16%) |
Current Trading and Outlook
Market trading activity picked up at the start of 2019. After
that, market value traded slowed down as geopolitical developments
influenced investor appetite to trade. As a result of this, market
value traded fell back versus the second half of 2018. Growth in
global ETP assets under management on the other hand picked up
again. Overall the underlying trends in the ETP market remained
healthy. Flow Traders’ 1H19 results follow the disciplined
execution of its growth strategy, as the growth of its value traded
led to market share gains. This was the result of growth in venues
connected to and growth in the number of counterparties and
products, especially in APAC and the Americas. Regulatory
developments regarding the implementation of IFR/IFD are underway
and EBA with ESMA and national governments are now working on
implementing the necessary legislation. Based on current drafts
available, Flow Traders anticipates it will have a neutral to
slightly positive impact on its business. Taking all this into
account, Flow Traders will further continue to execute on its
growth strategy to grow its presence in the ETP universe and
diversify trading into other asset classes.
Management Board statements CEO
Dennis Dijkstra stated: “In 2Q19 Flow Traders continued to build on
the foundation presented during our Capital Markets Day in April
2019. From a technological and regulatory perspective, financial
markets have become more efficient and transparent in the first
half of 2019, allowing market participants to provide liquidity in
the most optimal way, based on technology and pricing while
maintaining a low risk profile. In that context, Flow Traders’
strategy is focused on gaining scale through diversification of
trading and improving efficiency. By improving and expanding our
portfolio of products traded, while at the same time continue
growing our presence in the global ETP ecosystem, we optimize our
NTI growth potential. Our 1H19 performance is reflective of that
intention. While keeping a tight grip on cost growth, Flow Traders
grew its global value traded relatively more than the market. The
financial performance tracks the profit potential in the market and
confirms the long term growth path we want to follow to maximize
NTI growth.”
Chief Trading Officer Folkert Joling added: “In that ambition to
maximize our NTI growth, we grew the number of products traded, the
number of counterparties set up and the number of venues. This
resulted in a growth of market share in the first 6 months of 2019,
achieved both in ETPs and non-ETP products, across assets classes
including currencies, crypto and fixed income. Flow Traders
realized an NTI of € 117m over that same period, with an increase
in overall Value Traded. Especially in the US we saw a good pickup
in trading Fixed Income ETPs. As such, and in light of our future
ambitions, we have recently hired a number of experienced
professionals in different areas. Flow Traders will continue to
invest in its resources and infrastructure to support its ambition
of eventually becoming a global one-stop shop liquidity
platform.”
Preliminary Financial Calendar 2H19
12 August 2019
Ex-dividend date interim dividend FY19 13 August
2019
Record date interim dividend FY19 15 August 2019
Payment date
interim dividend FY19 27 September
2019
Start silent period ahead of 3Q19 trading update 17 October
2019
Release 3Q19 trading update (no analyst conference call)
Analyst conference call and webcast
The analyst conference call on the 2Q19/1H19
results will be held at 10:00 am Amsterdam time on Wednesday 24
July 2019. 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.
The Half Year 2019 report can be downloaded from
our website www.flowtraders.com/investors as well.
Contact Details Flow Traders N.V. Serge Enneman
/ Investor Relations Officer Phone: +31 20 7996799
Email:
investor.relations@flowtraders.com
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.
- Flow Traders 2Q19 Press Release
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