FRANKFURT (dpa-AFX) - The online broker Flatexdegiro is somewhat more optimistic about the current year following further strong growth in the third quarter. The Management Board raised its earnings forecast slightly on Tuesday evening, but merely maintained its profit target. In addition, Flatexdegiro earned less than expected in the third quarter.

The SDax-listed share fell by just over two percent after the close. However, its price had recently recovered significantly and was recently at its highest level since May 2022. Flatexdegiro's share price has been supported in recent weeks and months by the appointment of a new CEO and the start of share buybacks, among other things.

In the three months to the end of September, turnover increased by a good ten percent year-on-year to around 112 million euros. Consolidated profit rose by just over a fifth to just under 25 million euros. The increase in revenue was roughly in line with experts' expectations, but the operating profit fell slightly short of the average analysts' forecast.

In the third quarter, Flatexdegiro benefited from the sharp rise in the number of its customers. At the end of September, the company had 2.96 million accounts - more than 92,000 more than at the end of July. The number of transactions processed rose by around seven percent to 14.8 million compared to the same quarter last year. At 4.32 euros, the average commission per transaction was six cents higher than in the previous year.

Revenue is now expected to increase by just over 15 percent in 2024, slightly above the original target. In terms of profit, the broker continues to expect an increase of around 50 percent and thus a record result. In 2023, the company had a turnover of 391 million euros, slightly less than in 2022. Last year, profit fell by almost a third to 72 million euros.

"We are continuing to focus consistently on profitable growth through new customers and new products. Later this year, we will launch direct trading in cryptocurrencies in Germany," said the new CEO Oliver Behrens. "We also support the German government's approach of calling for capital market-based investments in private pension provision." As a bank and online broker, Flatexdegiro is predestined to offer customers retirement savings accounts. Behrens also wants to contribute his experience with similar products in other European countries.

The online broker has been through turbulent times - this also applies to the share price: driven by the trading boom among private investors, it had risen from around 6 euros to almost 30 euros in 2021 during the coronavirus pandemic. However, it plummeted again with the rise in interest rates. In addition, the financial supervisory authority Bafin identified deficiencies in operations and subjected the online broker to a special audit. This put the management under pressure.

In spring 2024, Flatex founder and major shareholder Bernd Fortsch settled accounts with the company's management. In an interview and a long letter, he commented on the special audit by Bafin, the company's communication with the financial markets, the ongoing business and the development of the share price.

CEO Niehage finally resigned in April. Supervisory Board Chairman Martin Korbmacher, however, withstood the pressure. At the Annual General Meeting at the beginning of June, he put up with the criticism and a vote of no confidence from the shareholders. However, the shareholders refused to discharge him, Niehage and former Deputy Chairman Muhamad Chahrour. However, it was not enough to remove Korbmacher from the supervisory body.

With the appointment of former Morgan Stanley boss Behrens to the top of the company, calm returned to the top of the company. The Supervisory Board also extended the contract of CFO Janos and made him Deputy CEO until the end of May 2029. Chief Technology Officer Stephan Simmang is now under contract for the same length of time./zb/stw/he