Flow Traders: A Symphony of Growth in 2024

In the dynamic world of finance, where fortunes can shift in the blink of an eye, Flow Traders has emerged as a beacon of resilience and growth. The company's 4Q and FY 2024 results are a testament to its strategic prowess and adaptability in navigating the ever-evolving market landscape.

Flow Traders' record fourth quarter and second-best fiscal year results are a direct reflection of its commitment to diversification and expansion. The company's Total Income for 4Q24 and FY 2024 stood at €159.0m and €479.3m, respectively, marking a significant improvement over the previous year. This remarkable performance can be attributed to several key factors:

1. Increased Trading Volumes and Value Traded: Flow Traders' ETP Value Traded increased by 13% in 4Q24 and 5% in FY 2024, reaching €424m and €1,545b, respectively. This growth was driven by the company's successful expansion into new markets and asset classes, with equity trading volumes across major exchanges seeing double-digit percentage point improvements compared to the same period a year ago and single-digit improvements compared to the last quarter.
2. Improved Market Volatility: Market volatility increased by single-digits compared to both the same period a year ago and last quarter for equity trading. Within Digital Assets, trading volumes increased significantly both compared to the same period a year ago and last quarter, with volatility increasing slightly both year-on-year and quarter-on-quarter.
3. Diversification of Trading Model: Flow Traders has successfully diversified its core trading model across different asset classes and geographies, resulting in increased optionality for the business. This diversification has allowed the company to capitalize on emerging opportunities and expand its trading capital base.
4. Expansion of Trading Capital: Flow Traders implemented a multi-layered trading capital expansion plan, including a revision of its dividend policy, to accelerate growth. The company secured a €25 million bank term loan as a first step towards embracing debt financing to unlock growth opportunities. Trading capital stood at €775m at the end of 4Q24 and FY 2024, an increase of 16% compared to €668m at the end of 3Q24 and 33% compared to €584m at the end of 4Q23 and FY 2023.

Flow Traders' strategic expansion of trading capital has not only led to a significant improvement in its financial performance but has also allowed the company to tap into new markets and asset classes. By diversifying its trading model across different asset classes and geographies, Flow Traders has been able to generate more income, increase its trading volumes, and improve its returns on trading capital.

In conclusion, Flow Traders' record fourth quarter and second-best fiscal year results are a testament to the company's commitment to growth, diversification, and adaptability in the ever-evolving market landscape. As the company continues to expand its trading capital and explore new opportunities, investors can expect Flow Traders to maintain its momentum and deliver impressive results in the years to come.