Reported EBITDA rose by 24.6 percent to EUR 53.2 million (H1 2020: EUR 42.7 million). The EBITDA adjustments result to a minor extent from one-time personnel expenses related to the merger and, for the most part, to non-cash provisions for long-term incentive plans, which are solely linked to share price performance and future EPS expectations. Based on the strong performance of flatexDEGIRO over the recent months, both factors led to additional provisions built, in line with the achieved and expected shareholder returns. The Company also digested a number of non-personnel one-time effects from the merger of DEGIRO with flatexDEGIRO Bank AG that were not adjusted.

After the successful implementation of all relevant synergy measures, first positive effects on profitability were seen in the first half 2021. This relates primarily to the use of marketing efficiencies and increased negotiating power from the combination of the two companies ("One firm") as well as the use of the Group's infrastructure and banking license for the entire European business ("One bank"). Synergies resulting from the harmonisation of IT systems ("One IT") as well as from the combination of the companies' trade flows ("One Flow") will start contributing to EBITDA, as expected, in the second half of 2021.

Adjusted EPS increased by 79.1 percent to EUR 2.40 (H1 2020: EUR 1.34), despite higher depreciation and amortization of identified intangible assets based on the DEGIRO purchase price allocation, that were accounted for only after closing of the acquisition in July 2020, and thus not included in the H1 2020 (adjusted) EPS. On a reported basis EPS reached EUR 1.03 (H1 2020: EUR 1.14).

Operating cash flow more than doubled from EUR 38.0 million in the first six months 2020 to EUR 83.4 million in the first half 2021. The significant generation of free cash flows provides a strong basis for flatexDEGIRO's ambitious growth plans and will, together with sustained low customer acquisition cost, be used to aggressively aim at market share gains in yet underdeveloped continental European markets by systematically widening the product and service offer as well as launching targeted marketing campaigns.

Outlook and Vision 2026

For the full year 2021, flatexDEGIRO expects its customer base to increase by 750,000 to 950,000 to 2.0 to 2.2 million customers, that will do an average of around 55 to 65 transactions per year. The number of executed transactions is thus estimated at 90 to 110 million for 2021.

The launch of important new products and services during the second half of 2021 is expected to further support the already strong development shown in the first half. On its path to retailize capital market access, DEGIRO customers will shortly benefit as the first clients in Europe outside of Germany and Austria from extended trading hours (8 a.m. to 10 p.m.) with Tradegate Exchange, the leading German retail exchange owned by Deutsche Börse AG. This will give clients access to capital markets outside of normal working-hours with a highly regulated and trusted exchange. flatexDEGIRO thereby adds to its platform another unique feature and strong USP in almost all of its international markets. Furthermore, customers will benefit soon from the roll-out of flatexDEGIRO's European ETP partnerships. A major education campaign to support less experienced customers in better understanding capital markets, equity-based saving opportunities and long-term investment strategies will be broadcasted all over Europe.

It is flatexDEGIRO's vision to serve 7 to 8 million customers by 2026. As a European brokerage powerhouse, flatexDEGIRO would then process at least 250-350 million transactions per year - even in years with low volatility.

Contact:

Achim Schreck Head of IR & Corporate Communications flatexDEGIRO AG Tel. +49 (0) 69 450001 0 achim.schreck@flatexdegiro.com Rotfeder-Ring 7 D-60327 Frankfurt/Main About flatexDEGIRO AG

flatexDEGIRO AG (WKN: FTG111, ISIN: DE000FTG1111, Ticker: FTK.GR) operates one of the leading and fastest growing online brokerage businesses in Europe, executing millions of paperless securities transactions per annum. B2C customers in 18 European countries are serviced via the flatex and DEGIRO brands and offered a wide range of independent products at competitive pricing, based on a modern, in-house state-of-the-art technology.

With more than 1.25 million customers and over 75 million securities transactions in 2020, flatexDEGIRO is the largest retail online broker in Europe. In a time of bank consolidation, low interest rates and digitalization, the flatexDEGIRO Group is ideally positioned for further growth. Within the next five years, flatexDEGIRO aims to grow its customer base to 7-8 million customers, settling at least 250-350 million transactions per year - even in years with low volatility. ^[1] flatexDEGIRO with new customer growth in H1 2021 of 41%. Avanza, Fineco and Nordnet with an average customer growth of 14% in H1 2021. Source: company data. ^[2] flatexDEGIRO with new customer growth in 2020 of 56%. Avanza, Fineco and Nordnet with an average customer growth of 19% in 2020. Source: company data. -----------------------------------------------------------------------------------------------------------------------

2021-08-02 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de ----------------------------------------------------------------------------------------------------------------------- 


Language:     English 
Company:      flatexDEGIRO AG 
              Rotfeder-Ring 7 
              60327 Frankfurt / Main 
              Germany 
Phone:        +49 (0) 69 450001 0 
E-mail:       ir@flatexdegiro.com 
Internet:     www.flatexdegiro.com 
ISIN:         DE000FTG1111 
WKN:          FTG111 
Indices:      SDAX 
Listed:       Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Munich, Stuttgart, Tradegate 
              Exchange 
EQS News ID:  1223232 
 
End of News   DGAP News Service 
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1223232 2021-08-02


 
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August 02, 2021 01:00 ET (05:00 GMT)