ROUNDUP: Flatexdegiro expects less growth after a record year – price slide
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FRANKFURT (dpa-AFX) – The online broker Flatexdegiro
On the stock exchange, the news was acknowledged with a price slide. Shortly after the start of trading on Thursday, the Flatexdegiro share fell by more than nine percent to 19.74 euros. This made the paper by far the biggest loser in the SDax small cap index
Analyst Martin Comtesse of investment bank Jefferies was disappointed with trading activity in the fourth quarter. The number of customers, on the other hand, has grown at a similar rate as in the previous quarters. The management’s goals for 2022 are in line with their expectations. On the other hand, one stock trader rated the target for the deals as a bit disappointing.
In the past year, the number of customer accounts at Flatexdegiro grew by 55 percent to 2.06 million. The transactions processed increased by 21 percent. With the record values, the company met management’s expectations. CEO Niehage had raised his forecast twice in the course of the year and recently set himself the goal of more than 2 million customers and more than 90 million transactions. The number of customers was 2.04 million at the end of 2021.
The trading boom on the stock exchanges during the Corona crisis played Flatexdegiro heavily in the cards. In the past year, each customer made an average of 55 transactions, the statement said. In the opinion of management, however, things should not continue at this level: For 2022, Flatexdegiro expects an average of 40 to 45 transactions per customer.
“Management bases this expectation on conservative assumptions regarding this year’s market volatility,” it said in support of the statement. After all, 2021 was an extraordinary year precisely because of the boom in the first quarter, said CFO Muhamad Chahrour on Thursday in a conference call with analysts.
Nevertheless, the board is sticking to its growth plans. The company laid the foundations for future “exponential customer growth,” said Niehage. The commission-free trade for important products and markets of the Degiro division should also contribute to this. For the year 2026, Flatexdegiro is still aiming for growth to seven to eight million customers.
If the trading environment, which has recently returned to normal, continues, this would be enough for the lower end of the forecast for customer growth in the current year, said Chahrour. “However, given the numerous growth measures we have taken in 2021 to improve customer experience and our product offerings, I am very confident that these will help us to significantly accelerate the growth of our customer accounts.”
Flatexdegiro shareholders will have to wait until the end of February for preliminary figures on sales and results for 2021, as CFO Chahrour said. The company plans to publish its annual financial statements on March 29th.
Flatexdegiro is represented with its offers in 18 European countries. The most important markets include Germany, the Netherlands and Austria. The management expects particularly strong growth in France, Spain, Portugal, Italy, Switzerland, Ireland and Great Britain.
Flatex was founded in 1999 by the entrepreneur and publisher Bernd Förtsch (“The Shareholder”). In 2009 the company went public, in 2020 the Frankfurt-based company took over its Dutch competitor Degiro and renamed itself Flatexdegiro. Most recently, the merged company was valued at around 2.2 billion euros on the stock exchange./stw/jcf/jha/
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