FLOW TRADERS 1Q19 TRADING UPDATE
Amsterdam, the Netherlands - Flow Traders N.V. (Euronext: FLOW) releases its unaudited 1Q19 trading update. The highlights for the period are:
Financial Overview Flow Traders 1Q19
|EURmillion||1Q19||4Q18||Change||YTD 19||YTD 18||Change|
|Net Trading Income||63.1||74.1||(15%)||63.1||213.2||(70%)|
|Net Trading Income||63.1||74.1||(15%)||63.1||213.2||(70%)|
|Employee expenses (fixed)||10.3||9.6||8%||10.3||8.8||18%|
|Fixed Operating Expenses||23.4||24.2||(3%)||23.4||21.7||8%|
|Employee expenses (var)||13.0**||16.0||(19%)||13.0||57.5||(77%)|
|Total operational expenses||36.3||40.3||(10%)||36.3||79.2||(54%)|
|Write offs, tangible assets||-||0.2||-||-|
|Profit Before Tax||23.2||31.4||(26%)||23.2||131.9||(82%)|
|EPS (in EUR)||0.41||0.56||0.41||2.36|
|EBITDA margins (%)||42%||46%||42%||63%|
*: Note: 2019 results reflect IFRS 16 impact of EUR984k in a shift from "Other expenses" to "Depreciation"
**: Employee expenses (var) comprise the cash variable compensation over 1Q19 of EUR11.5m and vesting of FCIP payments of previous years of EUR1.5m
Overview 1Q19 Value Traded
|EURbillion||1Q19||4Q18||Change||YTD 19||YTD 18||Change|
|Flow Traders ETP Value Traded||258.6||272.8||(5%)||287.4||239.1||8%|
|APAC ex China||8.7||9.7||(10%)||8.7||8.5||2%|
|Flow Traders` non-ETP Value Traded||738.1||807.0||(9%)||738.1||672.6||10%|
|Market ETP Value Traded||6,081||8,454||(28%)||6,081||6,540||(7%)|
|APAC ex China||209||291||(28%)||209||303||(31%)|
1Q19 regional highlights:
Management Board comments
Co-CEO Dennis Dijkstra stated:
"2019 started relatively strong, as Flow Traders was able to outperform the slowdown of the market as a result of diversification of trading and growth in number of counterparties and venues. Fixed cost growth remained well within limits as Flow Traders continued to execute on its long term growth strategy in a disciplined way. Our fixed technology expenses continued to grow as planned, our fixed employee expenses reflected the increase in FTEs and some annual salary adjustments. Other expenses included the impact of IFRS 16 and an administrative fine of EUR100k imposed by the AFM, the Dutch regulator, related to late-reporting of certain trades in 2017. The cause was identified and reported by us to the AFM proactively and mitigating measures have been taken. In respect of other regulatory matters we understand that the negotiations about the implementation of IFR/IFD are close to finalisation. We are confident that the outcome will lead to a better reflection of the risk of our business model. Flow Traders is furthermore proud to announce the appointment of a Global Head of Risk, Maarten van den Muijsenberg. He has an extensive background in trading as former Head of Trading, having led the dealingroom of our New York office. Maarten will take up the function per 1 May 2019. The responsibilities for finance remain with the CEO until the Management Board and Supervisory Board decide otherwise."
Chief Trading Officer Folkert Joling added:
"Flow Traders had a relative stronger trading quarter in 1Q19 than in 4Q18, despite the slower volumes overall. NTI showed a stronger performance versus 4Q18 in the Americas, in Europe our NTI was driven by more trading in liquid products. Flow Traders` trading platform showed an increased relative performance on-screen in all regions, which, together with ongoing good momentum in OTC trading, resulted in a global market share in ETP trading of over 4%. Growth initiatives are developing well; Hong Kong trading presence continued to grow in 1Q19 and Flow Traders decided to optimize its trading capacities in APAC through merging our Asian dealing rooms in Hong Kong. The Singapore office will remain operational to grow OTC trading and for support services, but the on-screen trading in APAC will be done from Hong Kong. Transition will be completed in 2019. FX liquidity providing is now ready for the next step as the underlying infrastructure is maturing in terms of connectivity, pricing and tooling. Now the focus is on controlled growth of counterparties set up and scaling. In the course of 2019 we will start to cover Asian trading hours. In line with our mission to provide liquidity to our institutional counterparties in all financial instruments, we have now added OTC trading in certain crypto asset classes to our offering. Diversification will allow for further optimization of our NTI growth and increase trading income stability. We will further highlight this strategic ambition in the Capital Markets Day which will be held on 18 April 2019 in Amsterdam."
Preliminary Financial Calendar
18 April 2019 Flow Traders Capital Markets Day
08 May 2019 AGM
10 May 2019 FY18 final dividend ex-dividend date
13 May 2019 FY18 final dividend record date
15 May 2019 FY18 final dividend payment date
28 June 2019 Silent period start ahead of 1H19 results
24 July 2019 1H19 results release
Flow Traders N.V.
Serge Enneman / Investor Relations Officer
Phone: +31 20 7996799
Important legal information
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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.
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