Flow Traders (FLOW) Q3 2024 earnings summary

Executive summary

• Q3 2024 marked the best third quarter in company history, with net profit rising to €37.5m, driven by increased market activity, volatility, and strong ETP and total value traded growth year-over-year.

• Net Trading Income rose 59% year-over-year to €107.3m, and Total Income increased 69% to €114.6m.

• Strategic capital expansion, including a €25m bank loan, dividend suspension, and a €15m share buyback, supported growth and rapid response to market volatility.

• Crypto trading volumes saw the largest year-over-year increase but declined sequentially; fixed income trading volumes were mixed as capital was reallocated.

• Increased contribution from China operations in the second year post-QFII license.

Financial highlights

• Total income reached €114.6m, up 69% year-over-year; Net Trading Income was €107.3m.

• EBITDA was €50.5m, a 309% increase year-over-year, with a margin of 44%.

• Net profit was €37.5m, with basic EPS of €0.87, nearly six times higher than Q3 2023.

• Trading capital rose 7% quarter-over-quarter to €668m, and shareholders' equity reached €666m, the highest ever.

• Completed €15m share buyback during the quarter, repurchasing 850,882 shares at an average price of €17.63.

Outlook and guidance

• Fixed operating expense guidance for FY24 remains unchanged, with headcount expected to remain flat and selective hiring in growth areas.

• Positioned to deliver consistent results in muted markets and strong upside during volatility, with scenario planning for upcoming events like the U.S. election.

• Board to seek further debt financing to expand trading capital and accelerate growth.

• Multi-layered trading capital expansion plan underway to capture growth opportunities.