flatexDEGIRO grows faster than three major competitors in Europe together - 2021 forecast raised significantly again
At the end of March 2021, the number of flatexDEGIRO brokerage customers stood at 1.61 million, an increase of around 78 percent compared to the 0.9 million customers recorded on 31 March 2020 (pro forma). Over the last 15 months, flatexDEGIRO has more than doubled the total number of customers organically (December 2019: 0.8 million customers, pro forma).
The management believes that flatexDEGIRO is thus already one of the three retail online brokers with the largest customer base in Europe and, based on the unparalleled growth rates, is well on its way to serving the largest customer base in Europe in the short to medium term.
For the remaining months of the current fiscal year, management expects to continue to dynamically increase the number of customers and to continue to gain significant market share in overall growing markets. The goal is to serve between 2.0 and 2.2 million customers on the flatex and DEGIRO platforms by the end of the year.
Strong increase in transactions settled
The number of trades settled on flatexDEGIRO's platforms increased by 94 percent to 33.59 million in the period from January to March 2021 (Q1 2020: 17.33 million, pro forma). It was driven by strong customer growth and high trading activity per customer. Q1 2021 thus exceeded the previous record quarter Q4 2020 (21.05 million transactions) by around 60 percent.
Average trading patterns tend to show a strong correlation with the volatility of global equity markets.
In the same period last year, March in particular had seen a jump in volatility and hence customer trading activity due to the foreseeable significant impact of the onset of the COVID pandemic. This resulted in March 2020 seeing the highest number of transactions settled in a single month in 2020. March 2021 also exceeded this peak value by around 20%.
Highest quarterly revenues ever achieved
Reported revenues increased by EUR 86.0 million to EUR 134.9 million (+175.9%) in the first three months of 2021 (Q1 2020: EUR 48.9 million). The significant increase was driven by above-average customer growth, strong trading activity per customer and the consolidation of DEGIRO.
Adjusted EBITDA margin reaches over 54 percent for the first time Due to the high scalability of the business model and its strong operating leverage, adjusted EBITDA increased at an even faster rate by 208.5 percent to EUR 73.1 million in the first quarter of 2021 (Q1 2020: EUR 23.7 million). The Adjusted EBITDA margin reached 54.2 percent, an improvement of 5.7 percentage-points compared with the full year 2020 Adjusted EBITDA margin (48.4 percent).
First synergy effects resulting from the acquisition of DEGIRO started to contribute to this. This relates primarily to the use of marketing efficiencies and increased negotiating power from the combination of the two companies ("One firm") as well as the use of the Group's infrastructure and banking license for the entire European business ("One bank"). Synergies resulting from the harmonization of IT systems ("One IT") as well as from the combination of the companies' trade flows ("One Flow") are expected to be achieved in the second half of 2021 in line with the original timetable after full implementation by the end of June 2021.
Outlook and Vision 2025
For the full year 2021, flatexDEGIRO expects its customer base to increase to 2.0 to 2.2 million customers, who will process an average of around 55 to 65 transactions per year. The number of executed transactions is thus estimated at 90 to 110 million for 2021.
It is flatexDEGIRO's vision to serve at least 1 percent of the eligible population in Europe, and thus more than 3 million people, as flatexDEGIRO customers by 2025 at the latest. As a European brokerage powerhouse, flatexDEGIRO would then process more than 100 million transactions per year - even in years with only low volatility.
Basis of presentation
All information and figures contained in the Interim Group Statement of flatexDEGIRO AG (herein either "flatexDEGIRO", "Company" or "Group") relate to the reporting date of 31 March 2021 or the three-month period from 1 January 2021 to 31 March 2021. The personal pronouns "we", "us" or "our" used in this Interim Group Statement refer to flatexDEGIRO with its subsidiaries.
Comparability of information / pro forma information
On 30 July 2020, flatex completed the acquisition of DeGiro B.V. (DEGIRO). DEGIRO was consolidated in the Group as of 1 August 2020. The first-time inclusion of DEGIRO in the Group's figures has a material impact on comparability with information provided prior to the acquisition.
To enable a better understanding of the underlying operational developments, flatexDEGIRO reports pro forma figures for all key performance indicators. These are marked as "pro forma" in the Interim Group Statement and do not correspond to IFRS accounting.
The pro forma information is for illustrative purposes only.
The Adjusted EBITDA figures are presented net of personnel expense for long-term variable compensation (see also Note 33 in the Annual Report 2020).
This Interim Group Statement may contain forward-looking statements, which can be identified by formulations such as "expect", "want", "anticipate", "intend", "plan", "believe", "aim", "estimate", "will" or similar expressions. Such forward-looking statements are based on current expectations and certain assumptions that may be subject to a number of risks and uncertainties. The results actually achieved by flatexDEGIRO may differ materially from these forward-looking statements. flatexDEGIRO assumes no obligation to update these forward-looking statements after publication or to revise them in the event of developments that differ from those anticipated.
Achim Schreck Head of IR & Corporate Communications flatexDEGIRO AG Rotfeder-Ring 7 D-60327 Frankfurt/Main Tel. +49 (0) 69 450001 0 email@example.com
About flatexDEGIRO AG
flatexDEGIRO AG (WKN: FTG111, ISIN: DE000FTG1111, Ticker: FTK.GR) operates one of the leading and fastest growing online brokerage businesses in Europe, executing millions of paperless securities transactions per annum. B2C customers in 18 European countries are serviced via the flatex and DEGIRO brands and offered a wide range of independent products at competitive pricing, based on a modern, in-house state-of-the-art technology.
With more than 1.25 million customers and 75 million securities transactions in 2020, flatexDEGIRO is the largest retail online broker in Europe. In a time of bank consolidation, low interest rates and digitalization, the flatexDEGIRO Group is ideally positioned for further growth. Until 2025 at the latest, flatexDEGIRO aims to win over 3 million customers and execute at least 100 million transactions per year - even in years with only low volatility. as of 15 April 2021
Additional features:File: flatexDEGIRO Group Interim Management Statement Q1 2021
16.04.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English Company: flatexDEGIRO AG Rotfeder-Ring 7 60327 Frankfurt / Main
Germany Phone: +49 (0) 69 450001 0 E-mail: firstname.lastname@example.org Internet: www.flatexdegiro.com ISIN: DE000FTG1111 WKN: FTG111 Indices: SDAX Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Munich, Stuttgart, Tradegate Exchange EQS News ID: 1185478 ? End of News DGAP News Service