flatexDEGIRO AG ((DE:FTK)) has held its Q2 earnings call. Read on for the main highlights of the call.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The recent earnings call for flatexDEGIRO AG painted a picture of robust growth and resilience, despite some challenges. The company reported a record-breaking first half of the year, with significant revenue and customer growth. While there were setbacks, such as delays in the crypto trading rollout and a decline in interest income, the overall sentiment was positive, highlighting a strong financial position and promising future growth potential.
Record Half-Year Performance
flatexDEGIRO AG achieved a record half-year in terms of both top line and bottom line performance. The company expects revenues to surpass EUR 0.5 billion, with net income anticipated to increase by 15% to 25%. This achievement underscores the company’s strong operational capabilities and strategic positioning in the market.
Strong Customer and Asset Growth
The company reported a 22% year-on-year increase in gross customer additions, with assets under custody reaching a new record of over EUR 83 billion, marking a 37% growth year-on-year. This growth reflects the company’s ability to attract and retain customers, bolstering its market presence.
Increased Trading Activity
There was an 18% year-on-year rise in the number of settled transactions, driven by heightened market volatility and increased U.S. trading activity. This uptick in trading activity highlights the dynamic nature of the financial markets and flatexDEGIRO’s ability to capitalize on these conditions.
Upgraded Full-Year Guidance
In light of its strong first-half performance, flatexDEGIRO revised its full-year guidance, projecting revenue growth of 4% to 8% and net income growth of 15% to 25% compared to 2024. This revision reflects the company’s confidence in meeting its targets and continuing its growth trajectory.
Crypto Trading Rollout Delays
The international rollout of crypto trading faced delays due to a partner’s pending MiCAR license approval. This setback has impacted the company’s planned expansion in the crypto trading space, although it remains a strategic focus for future growth.
Interest Income Decline
Interest income declined by 10% year-on-year, attributed to a lower interest rate environment. Despite this, the company saw a compensating increase in cash under custody, which helped mitigate the impact on overall financial performance.
Challenges in Margin Lending Rates
Effective July 1, 2025, flatexDEGIRO lowered its margin loan rates by approximately 50 basis points. This adjustment could impact future interest income, presenting a challenge that the company will need to navigate carefully.
Forward-Looking Guidance
Looking ahead, CEO Oliver Behrens emphasized the company’s strong performance in the first half of the year, driven by record-high revenues and net income. The company has raised its full-year guidance, projecting revenues exceeding EUR 0.5 billion and a 15% to 25% increase in net income. With assets under custody reaching over EUR 83 billion, flatexDEGIRO is poised for continued growth, despite some headwinds from the interest rate environment.
In conclusion, flatexDEGIRO AG’s earnings call highlighted a strong financial performance and optimistic outlook. The company’s record-breaking results and strategic initiatives underscore its robust market position and potential for future growth, despite challenges such as interest income declines and crypto trading rollout delays.