FLOW TRADERS Q321 TRADING UPDATE
Amsterdam, the Netherlands - Flow Traders N.V. (Euronext: FLOW) announces its unaudited Q321 trading update.
Highlights
Financial Overview
€million | Q321 | Q221 | YTD 9m21 | YTD 9m20 |
Net trading income | 67.1 | 94.4 | 303.7 | 803.1 |
EMEA (Europe) | 42.7 | 61.9 | 186.0 | 458.5 |
Americas | 10.0 | 17.5 | 66.3 | 261.8 |
APAC | 14.4 | 15.0 | 51.4 | 82.8 |
Net trading income | 67.1 | 94.4 | 303.7 | 803.1 |
Employee expenses1 | 35.0 | 37.3 | 119.2 | 254.1 |
Technology expenses | 12.4 | 12.3 | 36.5 | 34.2 |
Other expenses | 4.3 | 3.9 | 11.6 | 10.7 |
One-off expenses | 0.6 | 0.6 | 1.9 | 8.0 |
Total operating expenses | 52.2 | 54.1 | 169.3 | 307.0 |
EBITDA | 14.9 | 40.3 | 134.5 | 496.1 |
Normalized EBITDA2 | 24.6 | 43.2 | 142.8 | 469.0 |
Depreciation / amortisation | 3.8 | 3.8 | 11.4 | 10.5 |
Write off of (in) tangible assets | - | - | - | 0.1 |
Results of equity-accounted investments | - | - | (0.1) | (0.1) |
Profit before tax | 11.1 | 36.5 | 123.2 | 485.6 |
Tax | 2.4 | 7.9 | 24.2 | 87.3 |
Net profit | 8.7 | 28.7 | 98.9 | 398.3 |
Basic EPS3 (€) | 0.20 | 0.66 | 2.25 | 8.78 |
Fully diluted EPS4 (€) | 0.19 | 0.64 | 2.18 | 8.78 |
EBITDA margin | 22% | 43% | 44% | 62% |
Normalized EBITDA margin2 | 37% | 46% | 47% | 58% |
Value Traded Overview
€billion | Q321 | Q221 | Change | YTD 9m21 | YTD 9m20 | Change |
Flow Traders ETP Value Traded | 362.6 | 353.5 | 3% | 1,130.5 | 1,144.6 | (1%) |
EMEA (Europe) | 155.5 | 167.0 | (7%) | 521.8 | 585.0 | (11%) |
Americas | 182.1 | 166.6 | 9% | 538.3 | 501.4 | 7% |
APAC ex China | 25.0 | 19.9 | 26% | 70.4 | 58.3 | 21% |
Flow Traders’ non-ETP Value Traded | 1,110 | 952 | 17% | 2,978 | 2,930 | 2% |
Market ETP Value Traded5 | 8,853 | 8,002 | 11% | 26,169 | 27,516 | (5%) |
EMEA (Europe) | 443 | 471 | (6%) | 1,503 | 1,550 | (3%) |
Americas | 7,421 | 6,753 | 10% | 21,954 | 23,461 | (6%) |
APAC | 990 | 778 | 27% | 2,712 | 2,506 | 8% |
APAC ex China | 330 | 288 | 15% | 1,033 | 1,300 | (21%) |
Regional Highlights
EMEA:
AMERICAS:
APAC:
Management Board Comments
Dennis Dijkstra, CEO, stated:
“Despite the backdrop of a slower third quarter, we have continued to focus on implementing our strategic growth agenda particularly with the expansion of our fixed income market making business. Our liquidity provision in corporate credit and emerging markets sovereign bonds has been positively received by the buy-side and we were delighted to be the lead sponsor at the recent Fixed Income Leadership Summit in London. We have also demonstrated a more consistent and dedicated strategic ecosystem approach as we seek to leverage the technological shifts in the financial markets. Flow Traders’ investment in shape Q, connecting to the Pyth network and joining the LedgerEdge working group are proof points of this renewed approach.
“It is also pleasing to note that as part of growing our business, we are able to attract and recruit the best talent and we welcomed a large intake of new graduates on 1 September. While most of our offices have fully reopened, we are still cautiously monitoring the evolution of the pandemic and our business continuity plan remains active.”
Folkert Joling, Chief Trading Officer, added:
“Further market normalisation combined with some seasonal impacts resulted in lower trading results in the third quarter versus previous quarters in 2021. This was evident in the fixed income index side of the business where reduced volatility affected overall trading performance, particularly in the US. From a trading perspective, the launch of our single bond market making capabilities in Europe and the Americas is a significant milestone as we seek to broaden our trading activities across different products and asset classes. In crypto, we have maintained our leading market share in ETPs and continue to provide liquidity in new and existing listings. Naturally, work continues on building out these capabilities even further.”
Mike Kuehnel, Chief Financial Officer, added:
“In my first months at Flow Traders, my enthusiasm at the prospects ahead for the business has only grown. At the core of it, our ETP business has still significant tactical and strategic opportunities globally as assets under management now approach the $10 trillion mark and will grow even further. In order to identify additional areas of growth in and around our core and to systematically accelerate the execution of our strategic agenda, we are conducting a detailed and thorough review of our capital structure. While exploring a variety of different attractive growth options, we will continue to focus on leveraging our core capabilities and competencies and, from a financial perspective, maintain our commitment to firm cost control irrespective of our multi-year growth agenda.”
Preliminary Financial Calendar
13 January 2022 Start Silent Period ahead of Q421 / FY21 results
10 February 2022 Release Q421 / FY21 results (incl. analyst conference call)
4 March 2022 Release 2021 Annual Report
31 March 2022 Start Silent Period ahead of Q122 trading update
26 April 2022 Release Q122 trading update (no analyst conference call)
29 April 2022 AGM
Contact Details
Flow Traders N.V.
Investors
Jonathan Berger
Phone: +31 20 7996799
Email: investor.relations@flowtraders.com
Media
Laura Peijs
Phone: +31 20 7996799
Email: press@flowtraders.com
About Flow Traders
Flow Traders is a leading global financial technology-enabled liquidity provider in financial products, historically specialized in Exchange Traded Products (ETPs), now expanding into other asset classes. Flow Traders ensures the provision of liquidity to support the uninterrupted functioning of financial markets. This allows investors to continue to buy or sell ETPs or other financial instruments under all market circumstances. We continuously grow our organization, ensuring that our trading desks in Europe, the Americas and Asia can provide liquidity across all major exchanges, globally, 24 hours a day. Founded in 2004, we continue to cultivate the entrepreneurial, innovative and team-oriented culture that has been with us since the beginning. Please visit www.flowtraders.com for more information.
Notes
1. Fixed employee expenses: Q321 - €14.1m; Q221 - €13.1m; YTD 9m21 - €40.2m; YTD 9m20 - €34.5m
2. Normalized EBITDA and margin is based on the standard 35% profit share of operating result across the various financial periods without any IFRS 2 adjustments for share-based payments. A reconciliation to reported EBITDA is presented below:
€million | Q321 | Q221 | YTD 9m21 | YTD 9m20 |
Normalized EBITDA | 24.6 | 43.2 | 142.8 | 469.0 |
Prior year share plans | 7.9 | 6.3 | 18.7 | 2.2 |
Current year share plan deferral | (1.3) | (3.3) | (10.4) | (29.3) |
Variable remuneration composition | 3.1 | - | - | - |
Reported EBITDA | 14.9 | 40.3 | 134.5 | 496.1 |
3. Weighted average shares outstanding: Q321 - 43,570,015; Q221 - 43,715,537; YTD 9m21 - 43,875,028; YTD 9m20 - 45,362,072. 43,549,631 shares outstanding at 30 September 2021
4. Determined by adjusting the basic EPS for the effects of all dilutive share-based payments to employees
5. Source - Flow Traders analysis
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.
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