flatexDEGIRO continues growth in the 3rd quarter – revenue guidance slightly upgraded and earnings expectation confirmed

flatexDEGIRO continues growth in the 3rd quarter – revenue guidance slightly upgraded and earnings expectation confirmed

• Revenues in the 3rd quarter grow by 10.1% year-over-year to € 111.7 million and reach € 353.4 million after 9 months (+21.6%)
• Commission income rises by 8.9% in the 3rd quarter, interest income by 15.2%
• Increase in settled transactions in the quarter to 14.8 million driven by strong customer growth
• Full-year revenue expected to increase slightly above original guidance of +15%
• Forecast for net income confirmed at the upper end of guidance (increase of up to 50%) - record results targeted
• CEO Oliver Behrens: New products such as crypto trading and retirement savings accounts will sustainably strengthen our future growth

The online broker flatexDEGIRO continued to grow its revenues and earnings in Q3 2024. Driven by higher commission and interest income, revenues rose by 10.1 percent year-over-year to EUR 111.7 million (Q3 2023: EUR 101.4 million). At EUR 24.9 million, net income grew by 21.0 percent year-over-year (Q3 2023: EUR 20.6 million).

Based on the figures for the first nine months, with net income more than doubling to EUR 85.7 million (9M 2023: EUR 40.6 million), the company reaffirmed its target of achieving net income at the upper end of the guidance of up to EUR 108 million in the current financial year. This corresponds to a growth rate of up to 50 percent compared to the EUR 71.9 million achieved in 2023. In terms of revenues, which grew by 21.6 percent to EUR 353.4 million over the first nine months, flatexDEGIRO even expects an increase to a figure slightly above the previously communicated guidance of 15 percent.

Dr. Benon Janos, Deputy CEO and CFO of flatexDEGIRO, said: "flatexDEGIRO has again demonstrated a very strong operational performance in Q3, with all key earnings figures continuing to come in above previous year's levels. We are very confident going into the final quarter of the year and continue to expect a record year for flatexDEGIRO in which we aim to increase our net income to up to EUR 108 million, improving by up to 50 percent year-over-year."

Oliver Behrens, CEO of flatexDEGIRO, said: "We continue our focus on profitable growth driven by new customers and new products. Later this year, we will launch direct trading in cryptocurrencies in Germany. We also support the German government's approach of promoting capital market-based investments in private pension schemes. As a bank and online broker, we are predestined to offer customers retirement savings accounts and will also contribute our experience with similar products in other European countries."

Further increase in the number of customers drives transaction volume and commission income

The number of transactions processed in Q3 2024 increased by 7.4 percent year-over-year to 14.8 million (Q3 2023: 13.8 million). This was due to the increase in the number of customer accounts to 2.96 million at the end of September (December 2023: 2.7 million accounts) with more than 92,000 accounts opened in Q3 2024. At EUR 4.32, the average commission per transaction in the third quarter was slightly higher than in the same quarter of the previous year (Q3 2023: EUR 4.26). In total, flatexDEGIRO increased its commission income by 8.9 percent to EUR 64.1 million in the third quarter (Q3 2023: EUR 58.9 million).

In addition to commission income, interest income also improved in the third quarter, rising by 15.2 percent to EUR 44.1 million (Q3 2023: EUR 38.3 million). This was mainly due to the 3.9 percent increase of the average Cash under Custody to EUR 3.6 billion (Q3 2023: EUR 3.3 billion). In addition, the average utilization of margin loans by flatexDEGIRO customers rose by 14.1 percent to EUR 1.1 billion (Q3 2023: EUR 1.0 billion). Total customer Assets under Custody reached a new high of EUR 64.6 billion at the end of Q3 2024 (December 2023: EUR 51.7 billion). This includes net cash inflows of EUR 1.7 billion in Q3 2024 and EUR 5.0 billion since the beginning of 2024.

In terms of expense items, raw materials and consumables, which includes stock exchange fees and custody fees in particular, fell by more than a quarter to EUR 16.1 million (Q3 2023: EUR 21.8 million). Personnel expenses increased by 12.6 percent to EUR 26.1 million (Q3 2023: EUR 23.2 million), primarily driven by salary increases and new hires in 2023. Other administrative expenses rose to EUR 17.7 million (Q3 2023: EUR 12.0 million). The increase is mainly due to higher IT costs as well as higher legal and consulting costs. The latter are partially related to projects in connection with regulatory requirements and contributed to the termination of the mandate of the special commissioner by the German Federal Financial Supervisory Authority (BaFin) on September 30, 2024. To a lesser extent, there were also expenses for the preparation of new product launches, such as the launch of cryptocurrency trading planned for the fourth quarter of 2024. Marketing expenses rose to EUR 6.2 million (Q3 2023: EUR 4.5 million). Average customer acquisition costs were kept at a comparatively low level, both in the third quarter (EUR 67.42) and for the nine-month period (EUR 81.32).

 

Media Contact:

Achim Schreck    Phone +49 (0) 69 450001 1700 
Head of IR & Corporate Communications  achim.schreck@flatexdegiro.com

Laura Hecker      Phone +49 (0) 160 3064 404 
Director Investor Relations    laura.hecker@flatexdegiro.com

 

 About flatexDEGIRO AG (www.flatexdegiro.com)

flatexDEGIRO AG (ISIN: DE000FTG1111, Ticker: FTK.GR) is one of the leading and fastest growing online brokers in Europe and offers its services in 16 countries. The company recently held assets of approx. 65 billion euros in custody for its approximately 3 million customers and processed an average of more than 60 million securities transactions per year in recent years.

Through the flatex and DEGIRO brands, retail investors trade cost-effectively on approx. 50 stock exchanges in Europe, North America and the Asia-Pacific region and in over-the-counter direct trading. With its strong flatex and DEGIRO brands, flatexDEGIRO primarily addresses active and well-informed customers who trade without investment advice. With the ViTrade brand, flatexDEGIRO also serves particularly active traders.

Brokerage and the banking business associated with securities trading are handled by the subsidiary flatexDEGIRO Bank AG, which has a full banking license. flatexDEGIRO has proprietary technology with very high availability along the entire value chain and thus sets standards in platform and service quality.

 

Key financial figures       Q3 2024   Q3 2023   Change in %   9M 2024   9M 2023   Change in % Revenues   m EUR   111.7   101.4   +10.1   353.4   290.5   +21.6 Commission income   m EUR   64.1   58.9   +8.9   205.0   179.5   +14.2 Commission income per transaction   EUR   4.32   4.26   +1.4   4.44   4.14   +7.2 Interest income   m EUR   44.1   38.3   +15.2   135.7   97.3   +39.5 Other operating income   m EUR   3.4   4.3   -19.8   12.6   13.7   -7.8                               Raw materials and consumables   m EUR   16.1   21.8   -26.3   51.6   51.7   -0.2 in percent of revenues   %   14.4   21.5   -33.0   14.6   17.8   -18.0                               Operating expenses   m EUR   50.0   39.6   +26.3   149.7   150.4   -0.5 Current personnel expenses   m EUR   24.7   22.0   +12.3   74.6   64.7   +15.4 Personnel expenses for long-term variable remuneration   m EUR   1.4   1.2   +16.6   4.2   16.6   -74.9 Marketing expenses   m EUR   6.2   4.5   +38.1   24.2   30.0   -19.3 Average customer acquisition costs   EUR   67.42   57.99   +16.3   81.32   113.91   -28.6 Other administrative expenses   m EUR   17.7   12.0   +47.6   46.6   39.1   +19.2                               EBITDA   m EUR   45.7   40.0   +14.2   152.1   88.5   +72.0 EBITDA margin   %   40.9   39.4   +3.7   43.1   30.4   +41.4                               Consolidated net income   m EUR   24.9   20.6   +21.0   85.7   40.6   +111.1 Consolidated net income margin   %   22.3   20.3   +9.9   24.3   14.0   +73.5   Commercial key figures       Sep 2024   Sep 2023   Change in %   Sep 2024   Dec 2023   Change in %                               Customer accounts
at the end of the reporting period   m   2.96   2.63   +12.5   2.96   2.70   +9.6 - of which: "flatex" segment   m   0.73   0.65   +12.3   0.73   0.67   +9.8 - of which: "DEGIRO" segment   m   2.23   1.98   +12.6   2.23   2.03   +9.5                                       Q3 2024   Q3 2023   Change in %   9M 2024   9M 2023   Change in % New customer accounts   k   92.0   77.4   +18.8   297.9   263.5   +13.1 - of which: "flatex" segment   k   24.4   16.3   +49.9   77.7   52.1   +49.1 - of which: "DEGIRO" segment   k   67.6   61.2   +10.5   220.1   211.3   +4.2                                       Q3 2024   Q3 2023   Change in %   9M 2024   9M 2023   Change in % Transactions processed   m   14.8   13.8   +7.4   46.2   43.4   +6.6 - of which: "flatex" segment   m   5.5   4.8   +14.4   16.6   14.9   +11.1 - of which: "DEGIRO" segment   m   9.3   9.0   +3.6   29.6   28.4   +4.2                                       Sep 2024   Sep 2023   Change in %   Sep 2024   Dec 2023   Change in %                               Customer assets under custody   EUR bn   64.6   47.0   +37.5   64.6   51.7   +24.8 - of which: Securities   EUR bn   60.9   43.7   +39.2   60.9   48.1   +26.5 - of which: Cash   EUR bn   3.7   3.3   +14.3   3.7   3.6   +2.7                                

Disclaimer

Preliminary results

This communication contains preliminary information that is subject to change and does not claim to be complete.

Non-IFRS key figures (APMs)

This publication contains non-IFRS measures. These measures are alternative performance measures as defined by the European Securities and Markets Authority ("ESMA"). flatexDEGIRO presents these non-IFRS measures because (i) they are used by management to measure performance, including in presentations to the Management Board and members of the Supervisory Board and as a basis for strategic planning and forecasting; and (ii) they represent measures that flatexDEGIRO believes are widely used by certain investors, securities analysts and other parties as supplemental measures of operating and financial performance. These non-IFRS measures may not be comparable to similarly titled measures of other companies and have limitations as analytical tools and should not be considered a substitute for analysis of flatexDEGIRO's results of operations as reported under IFRS. Non-IFRS measures are not a measure of flatexDEGIRO's performance or liquidity under IFRS and should not be considered as an alternative to net income or other performance measures derived in accordance with IFRS or other generally accepted accounting principles or as an alternative to cash flows from operating, investing or financing activities.

Forward-looking statements

This release may contain forward-looking statements and information, which are characterized by formulations such as "expect", "aim", "anticipate", "intend", "plan", "believe", "aim", "estimate" or "will". Such forward-looking statements are based on our current expectations and certain assumptions, which may be subject to a variety of risks and uncertainties. The results actually achieved by flatexDEGIRO AG may differ materially from these forward-looking statements. flatexDEGIRO assumes no obligation to update these forward-looking statements or to correct them in the event of developments that differ from those anticipated.