FLOW TRADERS REPORTS Q4 RESULTS - STRONGEST QUARTER OF 2016
REALIZING SECOND BEST YEAR SINCE INCEPTION
Amsterdam, the Netherlands, 15 February 2017 - Flow Traders N.V. (FLOW.AS) today announced its Q4 and FY16 results (unaudited), stating that:
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4Q16 Net Trading Income (NTI) of € 68.7m was the highest quarterly NTI in 2016
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4Q16 ETP Value Traded grew faster than the market quarter-on-quarter
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4Q16 EBITDA margin improved to 48% as a result of the increase in trading activity
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Market ETP Assets under Management (AuM) reached the highest level on record end of 2016
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FY16 Net Trading Income confirmed the long term historic outperformance versus the ETP Market AuM growth rate
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FY16 ETP Value Traded outperformed the market as well
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Total Capital position remained stable year-over-year
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Proposed final dividend for FY16 is set at € 0.70, implying a total dividend over FY16 of € 1.25 and a dividend pay-out ratio of 63%
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No loss days in 2016, Flow Traders now has over 31 consecutive months without a loss day
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Number of trading venues grew from 95 to 104 in 2016, as we entered markets in India and became member of IEX in the US
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Number of products Flow Traders is registered market maker in rose to 4,153 (+34% year-over-year)
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Headcount grew in total 27% to 341 employees end 2016
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Flow Traders delivered its second best year since inception, following its best year on record in 2015
Overview Consolidated Quarterly and Full Year Results Flow Traders
| €million, unless otherwise stated | 4Q16 | 3Q16 | Change | FY16 | FY15 | Change |
| | | | | | (adjusted)* | |
| Net Trading Income | 69 | 49 | +41% | 250 | 305 | -18% |
| EMEA (Europe) | 44 | 30 | +50% | 158 | 183 | -14% |
| Americas | 17 | 15 | +16% | 68 | 51 | +32% |
| APAC (Asia) | 7 | 5 | +59% | 25 | 71 | -65% |
| EBITDA | 33 | 20 | +62% | 119 | 157 | -24% |
| Net Profit | 25 | 15 | +66% | 92 | 128 | -28% |
| EBITDA Margin | 48% | 42% | +6% | 47% | 51% | -4% |
| EPS (EUR) | 0.54 | 0.32 | +66% | 1.98 | 2.76 | -28% |
| | | | | | | |
| Flow Traders ETP Value Traded (€bn) | 189 | 153 | +27% | 640 | 603 | +6% |
| EMEA (Europe) | 128 | 99 | +30% | 418 | 377 | +11% |
| Americas | 55 | 47 | +15% | 190 | 170 | +12% |
| APAC (Asia) | 7 | 7 | +5% | 32 | 56 | -43% |
| | | | | | | |
| Market ETP Value Traded (€bn) | 5,464 | 4,708 | +16% | 21,287 | 21,302 | 0% |
| EMEA (Europe) | 250 | 216 | +16% | 973 | 960 | +1% |
| Americas | 4,606 | 4,103 | +12% | 18,298 | 17,791 | +3% |
| APAC (Asia) | 609 | 390 | +56% | 2,016 | 2,550 | -21% |
*: FY15 results corrected for IPO related costs
Management Board Statement
Co-CEO Dennis Dijkstra stated: "2016 was a strong year for the ETP industry and for Flow Traders. The global ETP market continued to reach new highs, as the total ETP AuM set a new record of € 3.3tn at the end of 2016 and the number of ETP listings continued to grow to nearly 9,800. This growth was realized in a market that was less active compared to 2015, as volatility declined with the exception of a few anticipated liquidity events. Investors responded in a fairly controlled manner to these events, such as Brexit, the FED rate decision, the US elections and the Italian referendum, whereas in 2015 investor reactions to liquidity events were more pronounced as they came unexpected. It is amid these market dynamics that Flow Traders realized a 2016 NTI of € 250m, which is the second best since inception and an affirmation of our long term growth strategy.
Regionally, Flow Traders continued to improve its performance in 2016. We realized a record annual result in the US and strengthened our number 1 position as ETP Liquidity Provider in Europe by growing our market share in the region. In Asia, the impact of the changes set in motion in 2H16 started to materialize in 4Q16 and are expected to become more visible in 2017, as we will be increasing our footprint in the region.
With the markets` continued focus on developments like MiFID II and further improvements of the trading infrastructure globally, Flow Traders is ideally positioned to continue its growth path and capture additional growth opportunities as they arise".
Co-CEO Sjoerd Rietberg added: "In 4Q16 Flow Traders` ETP Value Traded outperformed the market for the second quarter in a row, reaching € 189.4bn, mainly driven by EMEA and the Americas. Macroeconomic events in the US and Europe pushed our quarterly NTI to the highest level in 2016 of € 68.7m.
Throughout 2016, our trading infrastructure operated as expected and the trading team showed great discipline during events like Brexit and the US elections. Our Institutional Trading teams increased the number of counterparties and reinforced our dominant position in the OTC market via Request for Quote (RfQ) trading. Our Technology department realized some important improvements in our trading platform, which benefitted our performance almost immediately. All these changes brought Flow Traders up to the next level, as demonstrated by our growing market share while maintaining our desired risk profile.
In all, we are pleased with the FY16 results, also given the market circumstances. In 2017 we will keep executing our organic growth strategy and continue our efforts to maximize NTI."
CFO Marcel Jongmans stated: "As costs developed as expected in 4Q16, Net Profit came in at € 25m, pushing our FY16 Net Profit to € 92m. This underlines the strong cash flow generation of our business model. It enables us to pay a dividend that is well above the targeted pay-out levels, whilst keeping ample head room to execute our organic growth strategy. We are confident that in 2017 Flow Traders will keep growing in line with the long term growth trend, while maintaining its cost discipline and cementing its role as a leading global ETP liquidity provider".
Current Trading and Outlook
In line with market expectations the ETP market continued to grow in global Assets under Management, a trend that is expected to continue in 2017 in light of further regulation such as MiFID II. The shift in assets from active management funds towards the passive industry is ongoing and strongly drives ETP growth across all asset classes. We will continue to grow organically by increasing our coverage of the ETP space, whilst pursuing our goal to grow our NTI at a faster pace than the ETP Assets under Management. As part of our organic growth strategy, we will open a new office in Hong Kong in 2017 and re-locate to a new office in the US.
Preliminary Financial Calendar 2017
17 March Publication Annual Report
26 April Start Silent Period ahead of 1Q17 results
17 May 1Q17 Results
24 May AGM
26 May Ex-Dividend date Final Dividend FY16 (pending approval AGM)
29 May Record date dividend - Final Dividend FY16 (pending approval AGM)
31 May Payment date - Final Dividend FY16 (pending approval AGM)
28 June Analyst Day
29 June Start Silent Period ahead of 1H17 results
28 July 1H17 Results
04 August Proposed Ex-Dividend date Interim Dividend FY17
07 August Proposed Record-date Interim Dividend FY17
09 August Proposed Payment date Interim Dividend FY17
18 October Start Silent Period ahead of 3Q17 results
08 November 3Q17 Results
Analyst Conference Call and Webcast
The analyst conference call on the results will be held at 10:00 am CET on Wednesday 15 February 2017. The presentation will also be accessible via www.flowtraders.com, where the presentation can be downloaded and the conference call can be followed via a listen-only audio webcast. A replay of the conference call will be available on the company website for at least 90 days.
Contact Details
Flow Traders N.V.
Serge Enneman / Manager Investor Relations
Phone: +31 20 7996799
Email: Investor.relations@flowtraders.com
Please visit www.flowtraders.com for more information and for the full version of the press release / full year report, including all financial tables, explanatory notes and the responsibility statement by the executive board as compulsory under the EU Transparency Directive.
Consolidated P&L, simplified
|
Consolidated (in €m)
| 4Q16 | 3Q16 | Change | FY16 | FY15 (adjusted)* | Change |
| Net Trading Income | 68.7 | 48.8 | 41% | 250.0 | 304.7 | (18%) |
| Employee expenses (fixed) | (6.5) | (6.8) | | (25.9) | (21.5) | 21% |
| Employee expenses (var) | (16.0) | (9.8) | | (58.4) | (88.0) | (34%) |
| Technology expenses | (9.4) | (8.3) | | (34.8) | (27.5) | 27% |
| Other expenses | (3.7) | (3.5) | | (12.2) | (11.2) | 9% |
| Operating Expenses | (35.5) | (28.4) | 25% | (131.3) | (148.0) | (11%) |
| EBITDA | 33.1 | 20.5 | 62% | 118.7 | 156.7 | (24%) |
| Depreciation/Amortisation | (1.6) | (1.5) | | (6.3) | (6.8) | |
| Write offs, tangible assets | (0.1) | (0.1) | | (2.8) | (0.5) | |
| Results subsidiaries | (0.2) | (0.0) | | (0.2) | 0.7 | |
| Profit Before Tax | 31.2 | 18.9 | 65% | 109.4 | 150.1 | (27%) |
| Tax | (6.2) | (3.8) | | (17.5) | (21.8) | |
| Net Profit | 25.0 | 15.0 | 66% | 91.9 | 128.3 | (28%) |
| EPS (in €) | 0.54 | 0.32 | | 1.98 | 2.76 | |
| EBITDA margins (%) | 48% | 42% | | 47% | 51% | |
*: FY15 results corrected for IPO related costs
Development of Regulatory Capital until end 2016
| | 31 Dec 2016 | 30 Jun 2016 | 31 Dec 2015 | 30 Jun 2015 | 31 Dec 2014 |
| Total Trading Capital | 343.0 | 298.9 | 338.8 | 280.3 | 204.3 |
| Regulatory Capital | 270.1 | 252.2 | 246.6 | 202.2 | 142.8 |
| Regulatory Required Capital | 168.2 | 136.7 | 94.0 | 123.5 | 84.3 |
Important legal information
This press release is prepared by Flow Traders N.V. and is for information purposes only. It is not a recommendation to engage in investment activities and you must not rely on the content of this document when making any investment decisions. The information in this document does not constitute legal, tax, or investment advice and is not to be regarded as investor marketing or marketing of any security or financial instrument, or as an offer to buy or sell, or as a solicitation of any offer to buy or sell, securities or financial instruments.
The information and materials contained in this press release are provided `as is` and Flow Traders N.V. or any of its affiliates ("Flow Traders") do not warrant the accuracy, adequacy or completeness of the information and materials and expressly disclaim liability for any errors or omissions. This press release is not intended to be, and shall not constitute in any way a binding or legal agreement, or impose any legal obligation on Flow Traders. All intellectual property rights, including trademarks, are those of their respective owners. All rights reserved. All proprietary rights and interest in or connected with this publication shall vest in Flow Traders. No part of it may be redistributed or reproduced without the prior written permission of Flow Traders.
This press release may include forward-looking statements, which are based on Flow Traders` current expectations and projections about future events, and are not guarantees of future performance. Forward looking statements are statements that are not historical facts, including statements about our beliefs and expectations. Words such as "may", "will", "would", "should", "expect", "intend", "estimate", "anticipate", "project", "believe", "could", "hope", "seek", "plan", "foresee", "aim", "objective", "potential", "goal" "strategy", "target", "continue" and similar expressions or their negatives are used to identify these forward-looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors because they relate to events and depend on circumstances that will occur in the future whether or not outside the control of Flow Traders. Such factors may cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements. Accordingly, no undue reliance should be placed on any forward-looking statements. Forward-looking statements speak only as at the date at which they are made. Flow Traders expressly disclaims any obligation or undertaking to update, review or revise any forward-looking statements contained in this press release to reflect any change in its expectations or any change in events, conditions or circumstances on which such statements are based unless required to do so by applicable law.
Financial objectives are internal objectives of Flow Traders to measure its operational performance and should not be read as indicating that Flow Traders is targeting such metrics for any particular fiscal year. Flow Traders` ability to achieve these financial objectives is inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond Flow Traders` control, and upon assumptions with respect to future business decisions that are subject to change. As a result, Flow Traders` actual results may vary from these financial objectives, and those variations may be material.
Efficiencies are net, before tax and on a run-rate basis, i.e. taking into account the full-year impact of any measure to be undertaken before the end of the period mentioned. The expected operating efficiencies and cost savings were prepared on the basis of a number of assumptions, projections and estimates, many of which depend on factors that are beyond Flow Traders` control. These assumptions, projections and estimates are inherently subject to significant uncertainties and actual results may differ, perhaps materially, from those projected. Flow Traders cannot provide any assurance that these assumptions are correct and that these projections and estimates will reflect Flow Traders` actual results of operations.
By accepting this document you agree to the terms set out above. If you do not agree with the terms set out above please notify legal.amsterdam@nl.flowtraders.com immediately and delete or destroy this document.
Market Abuse Regulation
This press release contains information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
PressReleaseQ4FY16
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Source: Flow Traders NV via GlobeNewswire
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