Amsterdam, the Netherlands, 12 August 2016 - Flow Traders N.V. (“Flow Traders” or “the Company”)
(Euronext: FLOW) today announced its 2Q16 results, with the results showing a quarter-on-quarter
improvement in a slower market. The continued risk-off sentiment in the capital markets translated into
declining volumes in equities and increased volumes in the fixed income space. Macro-economic
developments, such as Brexit, the FED rate decision as well as the Japan elections impacted investor trading
appetite in 2Q16 across the globe. However, the total global ETP Assets under Management continued to
grow, especially in Fixed Income, reaching a new high of € 2.9tn overall at the end of 1H16.
For 2Q16, Flow Traders saw a quarter-on-quarter improvement in Net Trading Income and Net Income. Flow
Traders improved its overall Revenue Capture to 4.8 basis points from 4.3 basis points in 1Q16. As expected,
24 June, the day of the Brexit referendum outcome, led to a particularly strong day for the Company from a
trading perspective. All of Flow Traders’ trading and risk management systems performed as expected on the
day, demonstrating their resilience in exceptionally high volume circumstances. The RFQ platforms for offexchange
trading also prove to be a very efficient medium to provide institutional counterparties with
additional liquidity.
Following on from our consistent performance and in line with our dividend policy, the Company plans to
pay an interim dividend of € 0.55 per share, which confirms our sound financial position and our focus on
continuing to create value for our shareholders.
Flow Traders 2Q16 Key Highlights
Net Trading Income reached € 67.9m (+5% versus 1Q16), with a strong performance on 24 June
Global Reported ETP Market Values Traded decreased to € 3.54tn (-18% versus 1Q16) and Global Total
Market Value Traded decreased to € 5.05tn (-17% versus 1Q16) while Flow Traders’ ETP Value Traded
reached € 141.9bn (-6% versus 1Q16)
EBITDA margin remained strong at 48.5% for 2Q16 ( 50% in 1Q16)
Net Income for 2Q16 reached € 28.7m, or EPS € 0.62 (+23% versus 1Q16). This includes an one-off tax
benefit of € 4.5m in relation to the IPO costs
Revenue Capture reached 4.8 bps in 2Q16 (+0.5 bps versus 1Q16)
Flow Traders to pay an interim cash dividend of € 0.55 per share, in line with our policy of paying out
at least 50% of our net earnings to our shareholders.
Flow Traders 1H16 Key Highlights
Global Market ETP Assets under Management grew to € 2.9tn (US$ 3.2tn), the highest level on record
Global Total Market ETP Value Traded grew to € 11.1tn, an 11% increase versus 1H15
Flow Traders’ ETP Value Traded reached € 293bn in 1H16, down 5.3% versus 1H15, as investors
continued to prefer highly liquid products given the current macro-economic situation
Net Trading Income (NTI) was € 132.5m in 1H16, down 10% versus 1H15
Revenue Capture was 4.5 bps in 1H16 versus 4.8 bps in 1H15
Trading activity continued to show similar pattern as in 1Q16 until Brexit. Flow centralized around
highly liquid, mainstream products in times of heightened uncertainty
EBITDA Margin for 1H16 came in at 49% versus 52% in 1H15 as expenses increased, driven by an
increase in data connection costs since 2H15
Net Profit was € 51.9m in 1H16, versus Adjusted Net Profit of € 60.7m in 1H15 (Unadjusted Net Profit
1H15 € 30.7m)
EPS 1H16 is € 1.12, taking into account one-off write downs in 1Q16 and including an one-off tax
benefit in 2Q16 in relation to the 2015 IPO costs
FINRA membership enables roll-out of institutional trading in the US later this year
Dennis Dijkstra, co-CEO of Flow Traders commented:
“Flow Traders delivered a strong performance in 2Q16. We continue to roll out our growth strategy across the
globe with particularly pleasing results coming from the EMEA and the Americas regions, despite a relatively
weak market environment. In EMEA, we continued to have a high market share, with a strong participation
during Brexit. In the Americas, we continued to execute our strategy further and we look forward to implement
the new broker dealer on the back of the granted FINRA membership to be able to trade off-exchange with US
institutional counterparties. Whilst the Asian markets remained slow, impacting our business as well, we
continued to build on our presence here and expect to see the results of that in the near future.
As a result of our performance in 1H16, Flow Traders will pay out EUR 0.55 as an interim dividend which is 50%
of net earnings and reflecting our highly cash flow generative business model.”
Sjoerd Rietberg, co-CEO of Flow Traders commented:
“Flow Traders realized a Net Trading Income of € 67.9m, up 5% versus last quarter. Our business continued to
perform very well in the second quarter of 2016, which was characterized by a rather low trading activity and
low volatility for most of the quarter, before the referendum on Brexit. The typical trend we saw in 1Q16 and
the quarters before, with trading concentrated in more liquid products, plain vanilla ETPs with typically tighter
spreads, continued, but we saw a change of direction following the Brexit referendum outcome. After the 24th
of June, a strong peak in volatility and volumes triggered a lot of trading activity, something we were well
prepared for.
Flow Traders continued to grow in 1H16, in FTEs and number of products traded. Our trading infrastructure
operated as expected and the trading team also benefitted from increasing exposure to special events resulting
in increased market activity. Overall, we are pleased with the 1H16 results, especially taking into consideration
market circumstances, and we look forward to executing on our organic growth strategy, where we expect
developments like the FINRA membership in the US and the infrastructural improvements in Asia will help us achieve our goals.”
Current Trading and Outlook
Since our listing, the ETP market has grown as expected in global Assets under Management, reaching a new
top of € 2.9tn at the end of 2Q16, and in number of ETPs listed. The shift of assets from active management
funds towards the passive industry is ongoing, which has had (and, we believe, will have going forward) a
strong impact on ETP growth across all asset classes. Independent market sources reiterate the growth
potential of the ETP market towards 2020, making clear once more that we are following the right strategy and
giving us ample room for further growth in the near future. We will continue to focus on organic growth by
increasing our coverage of the ETP space and by optimizing our Net Trading Income, whilst continuing to aim to
grow at a faster pace than the growth of the ETP Assets under Management.
see and read more on
http://www.flowtraders.com/system/files/press/2016/08/757818.pdf
