flatexDEGIRO (FTK) Q4 2024 earnings summary

Executive summary

• Achieved record revenues and net income in 2024, both exceeding guidance, with strong customer and asset growth across Europe.

• Customer base grew by 14% to over 3 million, with 421,000 new accounts and a retention rate of 98.4%.

• Regulatory issues largely resolved, enabling renewed commercial focus, product expansion, and strategic priorities for growth and efficiency through 2027.

• Launched crypto trading in Germany, with plans for broader European rollout in 2025.

• Ambition for 2027: €650 million revenue and €200 million net income, targeting 10% annual customer growth.

Financial highlights

• Revenue reached €480 million, up 23% year-over-year, surpassing previous records and 2021 by 15%.

• Net income rose 55% year-over-year to €112 million, despite one-off costs.

• EBITDA exceeded €200 million for the first time, with margins between 40% and 45% in all quarters.

• Commission income increased 20% to €282 million, driven by customer growth and higher average commission per transaction.

• Interest income grew 32% to €180 million, supported by higher cash inflows and margin loan growth.

Outlook and guidance

• 2025 guidance: revenue expected in a ±5% range, net income up to +10%, with commission growth offsetting lower interest income.

• By 2027, revenues targeted to grow to €650 million (+35% vs 2024) and net income to €200 million (+75% vs 2024).

• Customer growth target of at least 10% per year, with new products and market expansion supporting growth.

• Cost base to be reduced, with lower personnel and admin expenses planned.

• Net interest income anticipated to decline in 2025 due to lower rates, but provision income to rise.