flatexDEGIRO (FTK) Q2 2024 earnings summary

Executive summary

• Achieved record H1 and Q2 2024 results, with revenues reaching €241.7m (up 27.8–31%) and net income more than tripling to €60.8m–€61m, driven by strong commission and interest income growth.

• Customer accounts grew 12.5–13% year-over-year to 2.88 million, with assets under custody up 27.9–28% to €61.1bn.

• Operating expenses fell 10% year-over-year, mainly due to lower marketing and personnel costs.

• First-ever dividend of €0.04 per share approved and share buyback program of up to 10% of share capital pending regulatory approval.

• Supervisory Board changes: Herbert Seuling stepped down, Bernd Förtsch joined; CEO resigned in April 2024, interim Co-CEOs appointed, and CEO search ongoing.

Financial highlights

• Q2 2024 revenues grew over 30% year-over-year; commission income up 16.7–25% and interest income up 47–55.2%.

• EBITDA in Q2 increased by 82% year-over-year, with margin growth of 39%; H1 EBITDA reached €106.5m, up 120%, margin at 44%.

• Net income margin up 78% in Q2; H1 profit margin at 25.2% (H1 2023: 10.6%).

• Gross margin improved by 3% due to higher share of interest income.

• H1 2024 net cash inflows reached €3.2bn, up 14% year-over-year; 109% of net cash inflows reinvested.

Outlook and guidance

• 2024 guidance confirmed: targeting upper end of 5–15% revenue growth and 25–50% net income growth.

• Management remains prudent but may update guidance if current trends persist through Q3.

• Customer growth in 2024 expected to match 2023 levels (~340,000 new accounts); trading activity per customer forecast stable.

• Preparing for potential new products, including readiness for the German private pension scheme.

• Interest income outlook depends on ECB rate changes; further rate cuts anticipated in late 2024.