flatexDEGIRO (FTK) Q3 2024 earnings summary

Executive summary

• Achieved record results for the first nine months of 2024, with strong growth in both revenue and net income, driven by commission and interest income.

• CEO transition completed, with Oliver Behrens joining on Oct 1, 2024, bringing significant experience and a focus on online brokerage and new product launches.

• Regulatory milestone reached as BaFin's special commissioner mandate was terminated after successful remediation of deficiencies.

• Launched share buyback program for up to EUR 50 million starting Oct 1, 2024.

• Preparation underway for new product launches, including crypto trading and personal pension accounts.

Financial highlights

• Nine-month revenues rose 21.6% year-over-year to EUR 353.4 million; Q3 revenues EUR 111.7 million, up 10.1%.

• Net income for 9M 2024 more than doubled to EUR 85.7 million (+111.1%), with a margin of 24.3%.

• EBITDA for 9M 2024 reached EUR 152.1 million (+72.0%), with a margin of 43.1%.

• Assets under custody hit a record EUR 64.6 billion at September 2024, up 37% year-over-year and 24.8% since December 2023.

• Net cash inflows totaled EUR 5 billion in 9M 2024, up 27% year-over-year, with average monthly inflows over EUR 500 million.

Outlook and guidance

• Upgraded 2024 revenue guidance to slightly above the original upper end (previously up to 15% year-over-year).

• Net income for FY 2024 anticipated at the upper end of the 25% to 50% growth range.

• Crypto trading to launch in Germany in Q4 2024, with expansion to other geographies in 2025.

• Personal pension account product development underway, pending German government legislation, with launch not expected before 2026.

• Admin expenses targeted to decline to a run rate of EUR 50 million or slightly above in 2025.