FLOW TRADERS Q221 RESULTS
Highlights
- Market ETP Value Traded decreased 14% quarter-on-quarter and decreased 14% H121 vs H120
- Flow Traders ETP Value Traded decreased 15% quarter-on-quarter and decreased 6% H121 vs H120
Flow Traders recorded NTI of €94.4m in Q221 reflecting a more normalised market environment. This compares to NTI of €142.2m in Q121 and €229.9m in Q220. H121 NTI was €236.6m vs €724.8m in H120- Total operating expenses of €54.1m incurred in Q221 which includes €0.6m of one-off COVID-19 and business continuity plan-related expenses
- 577 FTEs as at
30 June 2021 compared to 566 FTEs as at31 March 2021 - Q221 EBITDA reached €40.3m with a margin of 43% contributing to H121 EBITDA of €119.6m with a margin of 51%
- Q221 Net Profit amounted to €28.7m with basic EPS of €0.66. H121 Net Profit amounted to €90.2m with basic EPS of €2.05
- IFR/IFD came into force on
26 June 2021 with the initial impact being broadly neutral. Regulatory Own Funds Requirement (OFR) as at30 June 2021 was €271m with excess capital of €178m. Trading capital stood at €619m at the end of the second quarter - Completed €20m share buyback announced in
April 2021 . Announce additional repurchase of shares of up to €20m commencing on23 July 2021 over a period of 12 months in connection with employee incentive plans - Interim FY21 dividend set at €1 per share and the ex-dividend date is
17 August 2021
Financial Overview
€million | Q221 | Q121 | H121 | H120 |
Net trading income | 94.4 | 142.2 | 236.6 | 724.8 |
EMEA ( | 61.9 | 81.4 | 143.3 | 414.2 |
17.5 | 38.8 | 56.3 | 245.7 | |
APAC | 15.0 | 22.1 | 37.0 | 64.9 |
Net trading income | 94.4 | 142.2 | 236.6 | 724.8 |
Employee expenses* | 37.3 | 47.0 | 84.2 | 228.7 |
Technology expenses | 12.3 | 11.9 | 24.1 | 22.9 |
Other expenses | 3.9 | 3.4 | 7.4 | 7.4 |
One-off expenses | 0.6 | 0.7 | 1.3 | 1.5 |
Total operating expenses | 54.1 | 63.0 | 117.1 | 260.5 |
EBITDA | 40.3 | 79.3 | 119.6 | 464.3 |
Depreciation / amortisation | 3.8 | 3.7 | 7.5 | 7.2 |
Write off of (in) tangible assets | - | - | - | - |
Results of equity-accounted investments | - | - | (0.1) | (0.1) |
Profit before tax | 36.5 | 75.5 | 112.1 | 457.2 |
Tax | 7.9 | 14.0 | 21.8 | 81.9 |
Net profit | 28.7 | 61.6 | 90.2 | 375.3 |
Basic EPS** (€) | 0.66 | 1.39 | 2.05 | 8.25 |
Fully diluted EPS*** (€) | 0.64 | 1.35 | 1.99 | 8.25 |
EBITDA margin | 43% | 56% | 51% | 64% |
* Fixed employee expenses were: Q221 - €13.1m; Q121 - €13.0m; H121 - €26.1m; H120 - €22.9m
** Weighted average shares outstanding: Q221 - 43,715,537; Q121 - 44,348,083; H121 - 44,030,063; H120 - 45,492,824. 43,674,035 shares outstanding at
*** Determined by adjusting the basic EPS for the effects of all dilutive share-based payments to employees
Value Traded Overview
€billion | Q221 | Q121 | Change | H121 | H120 | Change |
Flow Traders ETP Value Traded | 353.5 | 414.4 | (15%) | 767.9 | 820.2 | (6%) |
EMEA ( | 167.0 | 199.4 | (16%) | 366.3 | 421.7 | (13%) |
166.6 | 189.6 | (12%) | 356.2 | 360.6 | (1%) | |
APAC ex | 19.9 | 25.5 | (22%) | 45.4 | 37.8 | 20% |
Flow Traders’ non-ETP Value Traded | 952 | 915 | 4% | 1,868 | 2,204 | (15%) |
Market ETP Value Traded1 | 8,002 | 9,313 | (14%) | 17,316 | 20,143 | (14%) |
EMEA ( | 471 | 590 | (20%) | 1,061 | 1,159 | (8%) |
6,753 | 7,780 | (13%) | 14,533 | 17,314 | (16%) | |
APAC | 778 | 944 | (18%) | 1,722 | 1,669 | 3% |
APAC ex | 288 | 415 | (30%) | 703 | 963 | (27%) |
1. Source -
Regional Highlights
EMEA:
- Maintained position as the leading liquidity provider in ETPs, both on- and off-exchange - #1 position off-exchange in Fixed Income, Equity, Fixed Income and Commodity ETFs
- Robust trading performance in EMEA with contributions from cryptocurrency market making activities
- Successfully completed connectivity migration for FX to further increase counterparty reach
- Following the opening of the
London andMilan branch offices, a new office inParis was opened in May, providing a physical presence in one of EMEA’s key markets and further increasing proximity to institutional counterparties - Partnered with TP ICAP to be one of the initial liquidity providers on the launch of their innovative wholesale trading platform for cryptocurrency
- Continued to expand Lead Market Maker activity with issuers - worked closely with iShares around the launch of two sustainable ETFs; BlackRock
U.S. Carbon Transition Readiness ETF (LCTU) andBlackRock World exU.S. Carbon Transition Readiness ETF (LCTD) - Sustained OTC momentum in Q2 as Flow Traders’ Single Dealer Platform (SDP) went live and more flow was traded with additional, newly connected counterparties
- Commenced coverage of Grayscale products in the US and crypto ETPs in
Canada asFlow Traders seeks to be the liquidity provider of choice
APAC:
- Active in equity exposure trading for OTC counterparties in APAC across all major US ETFs 24/5
- Market maker in the newly launched cash-settled Mini USD/CNH (US dollar/Offshore Renminbi) Futures on HKEX
- Finalised preparations for the Qualified Foreign Institutional Investor (QFII) registration in
China with the filing submitted in early Q3
Repurchase of Shares
Flow Traders announces that it will repurchase shares for a total aggregate consideration of up to €20m in connection with its employee incentive plans and to minimise shareholder dilution. The share repurchases will commence on23 July 2021 for a period of 12 months. As before, any shares repurchased will be held in treasury until such time as they are distributed
Management Board Comments
CEO
“We once again retained a strong focus on implementing our strategic growth agenda during the second quarter which saw further confirmation of our structural growth. ETP assets under management continue to grow apace and surpassed the
“From an operational standpoint, we maintained our strong cost control as well as a conservative capital position, which has meant we are able to pay an interim dividend of €1 per share to shareholders. The new IFR/IFD prudential regime finally came into force on
Chief Trading Officer
“The second quarter saw more normalised market conditions with lower levels of activity compared to Q1. Nonetheless, we delivered a resilient trading performance in Q2. We remain more convinced than ever of the significant trading opportunities ahead for the business. With this in mind, we were extremely active in enhancing our coverage of fixed income, commodity, crypto and FX markets. This was evidenced by collaborating with TP ICAP on the launch of their cryptocurrency trading platform as well as connecting to Bloomberg’s FX platform. We expect even greater contributions going forward from our growth business areas."
Preliminary Financial Calendar
17 August 2021 2021 interim dividend ex-dividend date
30 September 2021 Silent period starts ahead of Q321 trading update
28 October 2021 Q321 trading update (no analyst conference call)
Analyst Conference Call and Webcast
The Q221 results analyst conference call will be held at
Contact Details
Phone: +31 20 7996799
Email: investor.relations@flowtraders.com
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Attachment
Flow Traders - Q221 Results
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