Flow Traders NV: FLOW TRADERS REPORTS FIRST QUARTER 2016 RESULTS
(Thomson Reuters ONE) -
FLOW TRADERS REPORTS FIRST QUARTER 2016 RESULTS
Amsterdam, the Netherlands, 4 May 2016 - Flow Traders N.V. ("Flow Traders")
(Euronext: FLOW) today announced its 1Q16 results. The results show a
continuation of our structural growth path. For 1Q16, ETP Value Traded for Flow
Traders reached ?151 billion[1][2] (+12% quarter-on-quarter) with strong
performances in both Europe and the Americas, the biggest and most competitive
ETP market in the world. In Asia, the performance was more moderate in 1Q16 on a
quarterly basis, although 4Q15 performance was influenced by a one-off benefit.
Overall, Net Trading Income came in at ?64.6 million, in line with 4Q15. This is
also a reflection of a shift in volumes traded towards more liquid, blue chip
ETPs, which are usually characterized by relative tight spreads. Going forward,
our focus will continue to be on organic growth by increasing the volumes we
trade and optimizing our revenue capture, while we aim to grow at a faster pace
than the growth of the ETP Assets under Management.
Flow Traders 1Q16 Key Highlights
* On-Exchange Market ETP Value Traded grew to ?4.3 trillion in 1Q16, a 14%
increase quarter-on-quarter, triggered by increased trading activity in EMEA
and the Americas, especially in January and February
* ETP Value Traded by Flow Traders increased from ?135 billion in 4Q15 to ?151
billion in 1Q16 (+12%)
* Net Trading Income (NTI) was ?64.6 million in 1Q16, stable versus ?64.5
million in 4Q15, with strong performances in EMEA (+19% quarter-on-quarter)
and the Americas (+27% quarter-on-quarter)
* Revenue Capture was 4.3 bps in 1Q16 versus 4.8 bps in 4Q15
* The EBITDA Margin somewhat improved quarter-on-quarter from 48% to 50% in
1Q16, as a result of our tight cost control. EBITDA 1Q16 was ?32.3 million
* Net Profit was ?23.2 million in 1Q16, versus ?29.8 million in 4Q15. Main
driver was the tax benefits recognized during 4Q15, compared to a more
normal effective tax rate in 1Q16
* EPS 1Q16 is ?0.50, taking into account a one-off write down on a non-core
asset part of our infrastructure, impacting our EPS by ?0.04 negatively this
quarter. This write down will structurally reduce our operating expenses by
?1.2 million annually going forward
Dennis Dijkstra, Co-CEO of Flow Traders commented: "In the first quarter of
2016, Flow Traders continued to execute on its long term growth strategy,
especially in EMEA and the Americas. We reported a quarter-on-quarter stable Net
Trading Income of ?64.6 million. Operating expenses developed in line with
expectations. On the cost side, we decided to write down part of our non-core
infrastructure and cancel the sale process, which impacted our EPS by ?0.04 in
1Q16, but will result in structural savings of ?1.2 million annually going
forward. Our goal for 2016 remains to continuously improve our business and
increase the ETP Value we trade. We continue to do this by improving our pricing
power, our infrastructure and our risk management framework, so we grow
organically at a faster pace than the Assets under Management growth in the ETP
space. We are also looking forward to the implementation of new regulation, like
MiFID2, as it will bring greater transparency and a level playing field. This
will help liquidity providers like us to improve our visibility and show our
competitive strength."
Sjoerd Rietberg, Co-CEO of Flow Traders commented: "During 1Q16 the market
experienced relatively more trading in the more liquid, plain vanilla ETPs with
typically tighter spreads. Despite the lower market activity in February and
March, our 1Q16 ETP Value Traded developed to our satisfaction in EMEA and the
Americas with quarter-on-quarter growth of 19% and 27%, respectively. The
performance in APAC lagged, as the shift in ETP Value Traded towards more liquid
products was felt particularly in that region. For APAC, this impacted both our
Revenue Capture and Net Trading Income, despite the growth in ETP Value Traded.
Our overall Revenue Capture came in at 4.3 basis points in 1Q16 versus 4.8 basis
points in 4Q15, which is a reflection of the market developments described
earlier. Overall, in 1Q16, we generated a stable Net Trading Income, driven by a
growth of 12% in our ETP Value Traded quarter-on-quarter. We believe this was a
good performance in a somewhat challenging market in 1Q16."
Historical NTI performance Flow Traders per quarter over the last 2 years
+------------------------------------------------------------+
|NTI (? million) 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16|
| |
|Europe 23.0 17.2 28.0 45.5 51.2 45.6 52.3 33.4 39.9|
| |
|Americas 9.6 4.9 6.1 14.1 12.9 8.1 17.4 12.6 16.0|
| |
|Asia 4.0 2.8 4.0 13.6 12.9 16.8 23.0 18.5 8.7 |
| |
|Consolidated 36.6 24.9 38.1 73.2 76.9 70.5 92.8 64.5 64.6|
+------------------------------------------------------------+
.
As a result of the long term growth focus, Flow Traders' NTI has grown
substantially since 2014. The table above shows the NTI performance over the
last two years. These results underline our long term structural growth with on
top of that the increase of our NTI in periods of higher volatility since the
beginning of 2014.
Consolidated quarterly results Flow Traders
+----------------------------------------------------------------------+
| ?million, unless otherwise stated 1Q16 4Q15 Change |
| |
| ETP ValueTraded (?bn) 151 135 (+12%) |
| |
| Net Trading Income 65 65 - |
| |
| Adjusted EBITDA 32 31 +3.5% |
| |
| Adjusted EBITDA Margin 50% 48% +2% |
| |
| Adjusted Net Profit 23 30 (-22%) |
| |
| Adjusted EPS 0.50 0.64 (-22%) |
+----------------------------------------------------------------------+
In 1Q16 our ETP Value Traded rose 12% versus 4Q15 to ?151 billion, mainly driven
by our trading in EMEA and the Americas. Operational expenses developed in line
with our expectations, resulting in an EBITDA Margin of 50% in 1Q16 versus 48%
in 4Q15, mainly driven by additional year-end expenses in 4Q15. Net Profit was
?23.2 million in 1Q16, or EPS ?0.50. Main drivers were the tax benefits
recognized during 4Q15, compared to a more normal expected effective tax rate in
1Q16 and the one-off tangible asset write off, impacting EPS negatively by
?0.04. Overall headcount increased from 268 FTE at year-end 2015 to 288 FTE end
1Q16, to support our global leading role as an electronic ETP-focused liquidity
provider.
EMEA (Europe)
+----------------------------------------------------------------------+
| ?million, unless otherwise stated 1Q16 4Q15 Change |
| |
| Net Trading Income 40 33 (+21%) |
| |
| ETP Value Traded (?bn) 96 85 (+13%) |
+----------------------------------------------------------------------+
In EMEA the on-exchange ETP Market Value Traded was ?261 billion in 1Q16 versus
?220 billion in 4Q15 (+19%). Net Trading Income rose to ?39.9 million, an
increase of 21%, triggered by higher Revenue Capture and higher ETP Value
Traded. Flow Traders' on-exchange market share remained just below 20%.
Americas
+----------------------------------------------------------------------+
| ?million, unless otherwise stated 1Q16 4Q15 Change |
| |
| Net Trading Income 16 13 (+27%) |
| |
| ETP Value Traded (?bn) 46 41 (+12%) |
+----------------------------------------------------------------------+
In the Americas the on-exchange ETP Market Value Traded came in at ?3,514
billion in 1Q16, compared to ?2,970 billion in 4Q15 (+18%). ETP Value Traded by
Flow Traders increased from ?41 billion in 4Q15 to ?46 billion in 1Q16 (+12%).
Revenue Capture rose to 3.5 bps in 1Q16, up from 3.1 bps in 4Q15. This resulted
in a Net Trading Income of ?16 million, a 27% improvement quarter-on-quarter
from ?12.6 million. As mentioned in previous presentations, Flow Traders is on
track to start trading directly with institutional counterparties in the US
market in 2016.
APAC (Asia)
+-----------------------------------------------------------------------+
| ?million, unless otherwise stated 1Q16 4Q15 Change |
| |
| Net Trading Income 9 19 (-53%) |
| |
| ETP Value Traded (?bn) 9 9 (+2%) |
+-----------------------------------------------------------------------+
In APAC, the on-exchange ETP Market Value Traded reached ?522 billion, down 8%
quarter-on-quarter versus ?565 billion in 4Q15. ETP Value Traded by Flow Traders
increased from ?8.9 billion in 4Q15 to ?9.1 billion in 1Q16 (+2%). Revenue
Capture came in at 9.6 bps in 1Q16, a decrease versus 4Q15, which contained a
one-off late benefit.
Other
Flow Traders has decided to write down part of its non-core infrastructure and
cancel the sale process, which impacted our EPS by ?0.04 in 1Q16, but will
result in structural savings of ?1.2 million annually going forward.
Current Trading and Outlook
Going forward, our focus will continue to be on Flow Traders' organic growth by
increasing the volumes we trade and optimizing our revenue capture. We aim to do
so by improving our pricing power, our infrastructure and our risk management
framework, so we grow organically at a faster pace than the Assets under
Management growth in the ETP space.
Financial Calendar 2016
19 May AGM Flow Traders
23 May Ex-dividend date (pending AGM approval)
24 May Record date dividend
26 May Payment date dividend
15 July Start Silent Period
12 August 2H16 results
19 October Start Silent Period
09 November 3Q16 results
Analyst Conference Call and Webcast
The analyst conference call on the results will be held at 10:00 am CET on
Wednesday 4 May 2016. The presentation will also be accessible via
www.flowtraders.com, 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(at)flowtraders.com
Regulatory Disclosures
We have amended and renamed our Personal Transaction Policy. Please revert to
our website for the latest version of the policy.
(http://www.flowtraders.com/about-us/our-corporate-governance)
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(at)nl.flowtraders.com immediately and delete or destroy this
document.
--------------------------------------------------------------------------------
[1] All numbers presented in this press release are unaudited numbers. For
definitions of non-IFRS financial measures used in this press release, please
refer to the 1Q16 analyst presentation, which is available on
www.flowtraders.com after the conference call, for further explanation.
[2] In this press release, all On-Exchange Market ETP Value Traded reported are
based on a new method, which uses a more controllable source to ensure that we
capture global ETP Value Traded for all three regions we operate in. Please
refer to the 1Q16 analyst presentation, which is available on
www.flowtraders.com after the conference call, for further explanation
1QPressRelease.docx:
http://hugin.info/171622/R/2009684/743766.pdf
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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#2009684]
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Datum: 04.05.2016 - 07:30 Uhr
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