FLOW TRADERS REPORTS RECORD RESULTS IN THIRD QUARTER 2015
(Thomson Reuters ONE) -
AMSTERDAM, the Netherlands - 13 November 2015. Flow Traders N.V. ("the Company"
or "Flow Traders") (Euronext: FLOW), a leading global technology-enabled
liquidity provider specializing in exchange traded products ("ETPs"), today
announced its results for the third quarter, ending 30 September 2015.
Q3 2015 Key Highlights
* Net Trading Income increased 32% to ?92.8 million (2Q15: ?70.5 million) as a
result of strong growth in the underlying market resulting in higher revenue
capture and trading volumes, boosted by periods of higher volatility in some
financial markets
* YTD NTI was ?240.2 million compared to ?99.5 million for the same period
last year
* ETPs traded value increased 20% to ?180 billion (2Q15: ?150 billion),
revenue capture increased by 0.4 basis point to 5.1 basis points
* Adjusted EBITDA(1) increased 32% to ?48.4 million (2Q15: ?36.7 million) with
an adjusted EBITDA margin remaining stable at 52% (2Q15: 52%) resulting from
relatively low and stable fixed operating expenses. YTD adjusted EBITDA was
?125.4 million compared to ?44.0 million last year
* Adjusted net profit increased 29% to ?37.9 million (2Q14: ?29.4 million)
with an adjusted net margin of 40.8%; net profit increased to ?36.9 million
in 3Q15
* Adjusted earnings per share were ?0.81 and earnings per share were ?0.79
* Interim dividend paid out was ?0.50 per share
Dennis Dijkstra, co-CEO of Flow Traders commented: "In the third quarter, the
ETP market continued to see inflows(2) in all asset classes including, equities,
commodities, currencies and fixed income. This favourable environment, coupled
with the strong performance of our teams globally, is reflected in our record
results. We have leveraged our diversified regions and asset classes to benefit
from increases in trading volumes in line with the growth of the markets."
Sjoerd Rietberg co-CEO of Flow Traders commented: "Global ETP trading volumes
were 20% higher in 3Q15 than in 2Q15. This was predominantly a result of various
financial market events in the US during the period and the continuing
underlying trend of strong inflows to the ETP market. Our ETP value traded
increased 20% compared to 2Q15, in line with market volumes. Our net trading
income increased 32% compared to 2Q15 and 141% YTD15 compared to YTD14 as a
result of improvements in our pricing and infrastructure, the strong growth in
the underlying market, and was further boosted by certain periods of high
volatility in the markets."
Quarterly Results
+--------------------------------------------------------------------+
|? mln, unless otherwise stated 3Q15 2Q15 Change YTD15 YTD14 Change|
| |
| |
| |
|Net trading income 92.8 70.5 +32% 240.2 99.5 +141%|
| |
|ETP value traded (? bln) 180.5 150.2 +20% 510.7 341.4 +50%|
| |
|Adjusted EBITDA 48.4 36.7 +32% 125.4 44.0 +185%|
| |
|Adjusted EBITDA margin 52% 52% - 52% 44% +8%|
| |
|Adjusted net profit 37.9 29.4 +29% 98.5 34.2 +188%|
| |
|Adjusted EPS* ?0.81 ?0.63 2.12 0.74 |
+--------------------------------------------------------------------+
(* )Pro forma, calculated on the basis of post-IPO Flow Traders N.V. share
capital of 46,534,500 shares.
During 3Q15, there were notable events that contributed to increases in value
traded, such as the Chinese market events at the beginning of July and movements
in commodity prices, currencies and equities on the 24(th) of August.
The Company's ETP value traded increased 20% compared to 2Q15 in line with
market volumes. Its net trading income increased 32% compared to 2Q15 to ?92.8
million, reflecting an average increase in revenue capture of 0.4 basis points,
to 5.1 basis points. Flow Traders' net trading income YTD15 increased with 141%
to ?240.2 million compared to YTD14, outperforming both the growth in Assets
under Management and the growth in market ETP value traded.
Adjusted EBITDA margin remained stable at 52% given operating leverage from the
efficient and predictable fixed cost base.
Fixed personnel expenses remained stable at a level of ?5.0 million in 3Q15. As
at September 30, 2015, Flow Traders employed 252 full-time equivalents (June
30, 2015: 239).
Operating Segment Review
Europe
+-------------------------------------------------------------------+
|? mln, unless otherwise stated 3Q15 2Q15 Change YTD15 YTD14 Change|
| |
| |
| |
|Net trading income 52.3 45.6 +15% 149.1 68.2 +118%|
| |
|ETP value traded (? bln) 113.2 94.4 +20% 309.0 186.2 +66%|
| |
| |
+-------------------------------------------------------------------+
In Europe, ETP assets under management(2) decreased 3%, to ?453 billion at
September 30, 2015 from ?467 billion at June 30, 2015. This decrease was mainly
driven by adverse market conditions as there was an inflow recorded in Europe of
?54 billion(2) YTD15. The Company's ETP value traded increased by approximately
20%, resulting in a net trading income increase of 15% to ?52.3 million in 3Q15
and 118% YTD15 compared to previous year.
Flow Traders further increased the number of institutional counterparties the
company trades with and experienced growth in the off-exchange ETP trading
volumes, and maintained its market leading positions with stable market shares
and top ranks on the major European exchanges.
Americas
+------------------------------------------------------------------+
|? mln, unless otherwise stated 3Q15 2Q15 Change YTD15 YTD14 Change|
| |
| |
| |
|Net trading income 17.4 8.1 +115% 38.4 20.6 +87%|
| |
|ETP value traded (? bln) 47.3 41.8 +13% 154.0 131.7 +17%|
| |
| |
+------------------------------------------------------------------+
In the Americas, ETP assets under management(2) decreased 6% to ?1.8 trillion in
3Q15 from approximately ?1.9 trillion in 2Q15. However, due to certain periods
of high volatility, the market ETP value traded increased by 28% to ?3.3
trillion from 2Q15 to 3Q15. Flow Traders' ETP value traded increased by 13.2%.
However, due to further improvements in pricing and quality of execution the
Company increased its average revenue capture to 3.7 basis points in 3Q15 from
1.9 basis points in 2Q15. As a result, the net trading income in the region
YTD15 increased by 87% to ?38.4 million compared to YTD14.
On the back of this quarter's results, the Company expects to add additional
liquidity venues over the next six months in addition to the start of off-screen
block trading.
Asia
+------------------------------------------------------------------+
|? mln, unless otherwise stated 3Q15 2Q15 Change YTD15 YTD14 Change|
| |
| |
| |
|Net trading income 23.0 16.8 +37% 52.7 10.7 +390%|
| |
|ETP value traded (? bln) 20.0 14.1 +42% 47.8 23.6 +103%|
| |
| |
+------------------------------------------------------------------+
In Asia, ETP assets under management decreased 4% to approximately ?199 billion
in 3Q15 from approximately ?208 billion in 2Q15. The market ETP value traded
decreased by 17% to ?422 billion from 2Q15 to 3Q15 mainly driven by developments
in the Chinese markets. Despite this, the company was able to increase its ETP
value traded(2) by 103% YTD15 to ?48bn compared to ?24bn YTD14. There was a
slight decrease in the average revenue capture to 11.5 basis points in 3Q15 from
11.9 basis points in 2Q15. However due to certain periods of high volatility,
the net trading income in the region increased by 37% to ?23 million from ?16.8
million. YTD15 this growth is 390% compared to the same period in 2014.
YTD15 consisted of three comparable and strong quarters; specifically, 3Q15
experienced some periods of high volatility resulting in increased trading
volumes in combination with increasing revenue capture and a positive
contribution to the net trading income.
Financial Condition
+------------------------------------------------------------------------------+
| ? mln, unless otherwise stated As of Sept As of Jun As of Dec |
| 2015 2015 31, 2014 Change |
| |
| |
| |
| Total trading capital 294.3 280.3 204.3 +44% |
| |
| Regulatory capital 221.4 217.1 180.5 +23% |
| |
| Required regulatory capital 110.8 123.5 84.3 +31% |
| |
| |
+------------------------------------------------------------------------------+
Flow Traders' robust global capital base is significantly in excess of the
requirements of both its prime brokers and the relevant regulators. Given the
nature of the Company's liquidity provision activities and the models used by
the respective prime brokers and regulators, the required capital can fluctuate
significantly on a daily and intraday basis. We manage and monitor our capital
requirements continuously, adhering to the basic principle of staying well in
excess of requirements under varying market circumstances.
Other
The Company has entered into a so-called 'horizontaal toezicht' agreement
(covenant) with the Dutch tax authorities as of 14 September 2015. Based on the
principles of trust, transparency and corporate responsibility, the Dutch tax
authorities grant companies that have met certain conditions to enter in such an
agreement which in turn offers several benefits. In particular, the covenant
will allow us to more transparently communicate our tax positions and better
anticipate and streamline our corporate tax returns. This should result in less
retroactive audits and questionnaires, i.e. a smooth and reliable taxation
process.
During the fourth quarter Flow Traders expects to complete the sale of part of
our infrastructure. No material financial impact is expected.
Appendix
Adj.
Adj. Adj. Adj. Adj. YTD-
Q3 Q2 Q3 Q2 Q3 YTD YTD YTD 15
vs vs
Consolidated adj. YTD-
(in ?m) 2015 2015 2015 2015 Q2 Sep 15 Sep 15 Sep 14 14
-------------------------------------------------- ----------------------------
Net trading
income 92.8 70.5 92.8 70.5 32% 240.2 240.2 99.5 141%
Personnel
expenses
(fixed) (5.0) (4.9) (5.0) (4.9) (15.1) (15.1) (13.3)
Personnel
expenses
(variable) (29.7) (19.7) (29.9) (52.3) (72.2) (105.4) (22.0)
IT costs
licensing
expenses (7.2) (6.4) (7.2) (6.4) (19.5) (19.5) (15.4)
Other
expenses (2.5) (2.8) (3.5) (3.4) (7.9) (9.8) (4.8)
-------------------------------------------------- ----------------------------
Operational
Expenses (44.3) (33.8) (45.6) (67.1) 31% (114.8) (149.8) (55.5) 107%
-------------------------------------------------- ----------------------------
EBITDA 48.4 36.7 47.2 3.5 32% 125.4 90.4 44.0 185%
Depreciation
/
Amortisation (1.8) (1.8) (1.8) (1.8) (5.0) (5.0) (3.8)
-------------------------------------------------- ----------------------------
Profit before
tax 46.6 34.8 45.4 1.6 34% 120.5 85.4 40.2 200%
Tax (8.7) (5.5) (8.5) (1.7) (21.9) (17.9) (6.0)
-------------------------------------------------- ----------------------------
Net profit 37.9 29.4 36.9 (0.1) 29% 98.5 67.5 34.2 188%
EPS (in ?) 0.81 0.63 0.79 (0.00) 2.12 1.45 0.74
EBITDA margin
(in %) 52% 52% 51% 5% 52% 38% 44%
Condensed Balance Sheet
In ?m Change 30 Sept 15
Assets 30 Sep 15 30 Jun 15 31 Dec 14 vs. 30 Jun 15
-------------------------------------------------------------------------------
Trading capital 294 280 204 14
Property, Equipment and 25 26 22 (1)
Intangible Assets
Other Assets 12 11 6 1
-------------------------------------------------------------------------------
Total Assets 331 317 232 14
Equity & Liabilities
Other Liabilities 104 107 83 (3)
Tax Liabilities 14 8 7 5
-------------------------------------------------------------------------------
Total Liabilities 117 115 90 2
Equity
Member capital accounts - 155 65 (155)
Share Capital 5 - - 5
Share Premium 151 - - 151
Legal reserves 14 16 10 (2)
Other reserves (23) - - (23)
Profit for the year 68 31 68 37
-------------------------------------------------------------------------------
Total Equity 214 202 143 12
ENDS
Analyst Conference Call and Webcast
Dennis Dijkstra (co-CEO) and Sjoerd Rietberg (co-CEO) of Flow Traders will host
an analyst conference call today at 10.00 am CET to discuss the results for the
third quarter 2015 ended 30 September. To access the audio webcast, please visit
www.flowtraders.com. A replay of the webcast will remain available on the
corporate website for at least 90 days.
Important Dates
+----------------------------------------------------------------+
| |
| |
| Full year 2015 results 24 February 2016 |
| |
| Annual report 18 March 2016 |
| |
| Results over the first quarter 2016 4 May 2016 |
| |
| Annual General Meeting 19 May 2016 |
| |
| |
+----------------------------------------------------------------+
NOTES TO EDITORS
Contact Details
Citigate First Financial
Petra Jager / Hans Schrama
+31 20 575 4010
flowtraders(at)citigateff.nl
About Flow Traders
Flow Traders is a leading global technology-enabled liquidity provider that
specializes in ETPs. We provide liquidity in ETP markets 24 hours a day while
seeking to stay market neutral at all times and without having directional
opinions. While we do not have any clients, we enable investors to buy and sell
ETPs efficiently by quoting bid and ask prices. We seek to earn small amounts of
money on large numbers of individual transactions based on the differences
between our ETP prices and the prices of the underlying or related instruments.
Investors benefit from our activities due to increased liquidity, higher
execution quality and lower overall trading costs. As such, we contribute to
more efficient and transparent securities markets. We provide liquidity in over
4,000 ETP listings across the globe, tracking all underlying asset classes,
including equities, fixed income, commodities and currencies with access to over
90 trading venues in more than 30 countries. Flow Traders is headquartered in
Amsterdam, the Netherlands, with trading offices in Asia and the US, covering
all time zones. Flow Traders' shares are listed on Euronext Amsterdam (symbol:
FLOW). For more information, please visit www.flowtraders.com.
Important legal information
This press release is prepared by Flow Traders N.V. and is for information
purposes only and the material contained in this document is provided 'as is'.
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(at)nl.flowtraders.com immediately and delete or destroy this
document.
Unaudited numbers. For definitions of non-IFRS financial measures used in this
press release, refer to the IPO prospectus dated 30 June 2015, which is
available on www.flowtraders.com
--------------------------------------------------------------------------------
(1) 2015 Adjustments relates to extra ordinary expenses in relation with the
IPO. YTD Adjustments relating to SARs expenses amounted ?33.2 million (Q3 ?0.2
million), IPO expenses ?1.8 million (Q3 ?1.0 million) and tax effect ?4.0
million (Q3 ?0.2 million.
(2) Source for AuM: Blackrock ETP Landscape.
Press Release (PDF):
http://hugin.info/171622/R/1966578/718215.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Flow Traders NV via GlobeNewswire
[HUG#1966578]
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Datum: 13.11.2015 - 07:31 Uhr
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