Flow Traders NV: FLOW TRADERS REPORTS RESILIENT PERFORMANCE IN SLOW MARKET CONDITIONS
(Thomson Reuters ONE) -
FLOW TRADERS REPORTS RESILIENT PERFORMANCE IN SLOW MARKET CONDITIONS
Amsterdam, the Netherlands, 17 May 2017 - Flow Traders N.V. (Euronext: FLOW)
today released its unaudited 1Q 2017 trading update. Key highlights include:
* 1Q17 Flow Traders' ETP Value Traded reached ? 174.8bn, with growing momentum
in the US;
* 1Q17 Flow Traders' ETP Value Traded slightly outperformed the market in
1Q17 and showed strong growth Year-on-Year (+14%) versus a declining market
Year-on-Year (-19%);
* 1Q17 Net Trading Income (NTI) of ? 48.3m reflects a resilient performance in
slow market conditions;
* Investor activity slowed down substantially, pushing market volatility (VIX)
to its lowest point in over a decade and negatively impacting spreads;
* 1Q17 EBITDA margin at 38% reflects expense development in line with
expectations;
* Underlying growth drivers of the ETP market remained intact, as ETP Assets
under Management (AuM) reached a new record once again of ? 3,610bn[1];
* Continued strong cash flows resulted in further growth of Flow Traders'
Regulatory Capital;
* Flow Traders had zero loss days in 1Q17, making it over 34 months without a
trading loss day;
* Number of ETP listings Flow Traders is registered market maker in
approaching 5,000.
Overview Consolidated Quarterly and Full Year Results Flow Traders
+-------------------------------------------------------------------+
|?million, unless otherwise stated 1Q17 4Q16 Q-o-Q 1Q16 Y-o-Y |
| Change Change|
| |
| |
| |
|Net Trading Income 48.3 68.7 -30% 64.6 -25% |
| |
|EMEA (Europe) 30.6 44.4 -31% 39.9 -23% |
| |
|Americas 13.1 16.9 -23% 16.0 -18% |
| |
|APAC (Asia) 4.6 7.3 -37% 8.7 -47% |
| |
| |
| |
|EBITDA 18.2 33.1 -45% 32.2 -44% |
| |
|Net Profit 13.6 25.0 -45% 23.2 -41% |
| |
|EBITDA Margin 38% 48% -10% 50% -12% |
| |
|EPS (EUR) 0.29 0.54 -45% 0.50 -41% |
| |
| |
| |
|Flow Traders ETP Value Traded (?bn) 174.8 189.4 -8% 153.4 +14% |
| |
|EMEA (Europe) 106.2 127.9 -17% 96.5 +10% |
| |
|Americas 63.2 54.5 +16% 46.7 +35% |
| |
|APAC (Asia) 5.4 7.0 -22% 10.2 -47% |
| |
| |
| |
|Market ETP Value Traded (?bn) 4,900 5,464 -10% 6,061 -19% |
| |
|EMEA (Europe) 233 250 -7% 266 -12% |
| |
|Americas 4,255 4,606 -8% 5,257 -19% |
| |
|APAC (Asia) 411 609 -32% 538 -24% |
+-------------------------------------------------------------------+
Management Board Statement
Co-CEO Dennis Dijkstra stated: "The first quarter of 2017 witnessed sluggish
market conditions with trading activity at its lowest point in over a decade,
while the underlying ETP market continued to grow. Despite this challenging
environment, Flow Traders delivered a robust performance and continued to
perform in line with our expectations on the factors within our control. We have
continued to drive operational efficiency with improvements in the performance
of our technology platform, improved the connectivity to (new) trading venues
and expanded the number of products we trade. We also made progress in setting
up our FX infrastructure, which is on track to be operational by the end of
2017."
Co-CEO Sjoerd Rietberg added: "Regionally, we saw the growth of our ETP Value
Traded continue in the US and expect to maintain this trend through 2017, with
the first contributions from our US Institutional Trading Desk expected in
2H17. Our market share continued to grow in the US whilst, in Europe, market
sentiment had a clear impact on spreads and the product mix traded. The focus on
more liquid products increased as there was a reduction in overall trading
activity in the market. This was reflected in our market share in Europe, which
was somewhat lower versus 4Q16, but still well above our average market share in
2016. As part of our ongoing development, we continue to anticipate on the
expected impact of further regulations, like MiFID II, and grew the number of
liquidity providerships and institutional counterparties substantially. In Asia,
we moved ahead with further improvements in connectivity and the broader
technological setup. Pleasingly, these initiatives are already showing a
positive impact on our performance in the region as our market share improved
marginally and we have also taken the first steps in setting up the Hong Kong
office. Overall, we remain committed to our organic growth strategy for the
foreseeable future as the underlying ETP market continues to grow as well, and
believe we are well positioned to benefit from the eventual upturn in market
activity."
CFO Marcel Jongmans concluded: "In the first quarter of 2017, costs developed as
planned. As the underlying growth drivers in the ETP market remain intact, it is
important that Flow Traders keeps investing in its technology and its people to
warrant future growth and position itself further for future upturns in the
market. Fixed employee expenses grew in 1Q17 as headcount continued to increase
and recruitment activities expanded whilst variable employee compensations came
down, further highlighting the benefits of our flexible business model.
Technology expenses remained flat during the quarter, resulting in a Net Profit
of ? 13.6m. Our balance sheet and capital position developed as expected, with
the Regulatory Capital Required returning to normal levels after the incidental
peak at the end of 2016. Overall, our capital positions remained comfortably
above all regulatory required levels. We are confident that Flow Traders will
keep growing in line with the long-term growth trend, while maintaining its cost
discipline and cementing its role as a leading global ETP liquidity provider".
Current Trading and Outlook
As anticipated in the presentation of the FY16 results, the ETP market continued
to grow in global Assets under Management in 1Q17. This is a trend that is
expected to continue in 2017, also in light of further regulation such as MiFID
II. The shift in assets from active management funds towards the passive
industry is ongoing and strongly drives ETP growth across all asset classes.
Relative slow quarters like 1Q17 show the importance of scale and expansion. We
will continue to grow organically by increasing our coverage of the ETP space,
whilst pursuing our goal to maximize the growth of our NTI.
Preliminary Financial Calendar 2017
24 May AGM
26 May Ex-Dividend date Final Dividend FY16
(pending approval AGM)
29 May Record date dividend - Final Dividend
FY16 (pending approval AGM)
31 May Payment date - Final Dividend FY16
(pending approval AGM)
28 June Analyst Day
29 June Start Silent Period ahead of 1H17
results
28 July 1H17 Results
04 August Proposed Ex-Dividend date Interim Dividend
FY17
07 August Proposed Record-date Interim Dividend FY17
09 August Proposed Payment date Interim Dividend
FY17
03 October Start Silent Period ahead of 3Q17 results
(updated)
24 October 3Q17 Trading Update (updated)
Analyst Conference Call and Webcast
The analyst conference call on the results will be held at 10:00 am CEST on
Wednesday 17 May 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(at)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 1Q17 (simplified)
+--------------------------------------------------------------------+
| 1Q17 4Q16 Q-o-Q Change 1Q16 Y-o-Y Change|
|Consolidated (in ?m) |
| |
| |
| |
|Net Trading Income 48.3 68.7 -30% 64.6 -25% |
| |
|Employee expenses (fixed) 7.7 6.5 +22% 5.9 +31% |
| |
|Employee expenses (var) 9.3 16.0 -42% 15.4 -40% |
| |
|Technology expenses 9.2 9.4 -1% 8.4 +10% |
| |
|Other expenses 3.8 3.7 +3% 2.6 +46% |
| |
|Operating Expenses 30.1 35.5 -15% 32.4 -7% |
| |
|EBITDA 18.2 33.1 -45% 32.2 -44% |
| |
|Depreciation/Amortisation 1.7 1.6 1.7 |
| |
|Write offs, tangible assets 0.0 0.1 2.1 |
| |
|Results subsidiaries 0.0 0.2 0.0 |
| |
|Profit Before Tax 16.5 31.2 -47% 28.5 -42% |
| |
|Tax 2.9 6.2 5.2 |
| |
|Net Profit 13.6 25.0 -45% 23.2 -41% |
| |
|EPS (in ?) 0.29 0.54 0.50 |
| |
|EBITDA margins (%) 38% 48% 50% |
+--------------------------------------------------------------------+
Development of Regulatory Capital until end 1Q17
+------------------------------------------------------------------------------+
| 31 Mar 31 Dec 30 Jun 31 Dec 30 Jun 31 Dec |
| 2017 2016 2016 2015 2015 2014 |
| |
|Total Trading 299.0 343.0 298.9 338.8 280.3 204.3 |
|Capital |
| |
|Regulatory 276.1 270.1 252.2 246.6 202.2 142.8 |
|Capital |
| |
|Regulatory 128.9 168.2 136.7 94.0 123.5 84.3 |
|Required Capital |
+------------------------------------------------------------------------------+
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.
Market Abuse Regulation
This press release contains information within the meaning of Article 7(1) of
the EU Market Abuse Regulation.
--------------------------------------------------------------------------------
[1] Source: BlackRock iShares
PressRelease Flow Traders 1Q17:
http://hugin.info/171622/R/2105305/799070.pdf
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
Unternehmensinformation / Kurzprofil:
Datum: 17.05.2017 - 07:30 Uhr
Sprache: Deutsch
News-ID 543014
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