Flatexdegiro increases forecast for 2024

Flatexdegiro increases forecast for 2024

After a strong start to the year, the online broker Flatexdegiro is somewhat more optimistic about sales and profit development for 2024. The company announced that the increase achieved is expected to be at the upper end of the forecast range. The reaction on the stock market was positive, with a significant price jump to a high since June 2022 of 11.70 euros per share in the SDax. At the close of trading, the price was still almost a fifth up at 11.53 euros. A slight increase in the price is expected again this year, but the record high of almost 30 euros from the time of the corona pandemic is still a long way away.

The goals set at the beginning of the year call for an increase in sales of 5 to 15 percent and an increase in profits of 25 to 50 percent. Flatexdegiro is now aiming to move towards the upper end of these ranges. In the first quarter of the year, the company was able to record sales growth of a quarter to 123 million euros. Earnings before interest, taxes, depreciation and amortization (Ebitda) rose by 177 percent to almost 54 million euros. Flatexdegiro's net profit amounted to 30 million euros, an increase of 340 percent compared to the previous year.

The reduction in marketing expenses by a third to 11.5 million euros, as well as the significant increase in interest income by almost two thirds to 43.8 million euros as a result of the increase in the European Central Bank's key interest rate, contributed significantly to the positive result. Flatexdegiro has already included the possible effects of key interest rate cuts later in the year in its forecast. The search for a successor to the outgoing CEO Frank Niehage is ongoing, but there is still no concrete timetable.current value.

In an interview, major shareholder Bernd Förtsch previously criticized Flatexdegiro's lack of innovative strength, lack of understanding of the market and uncompetitive products. He highlighted that the company missed the boom in cryptocurrencies like Bitcoin. Compared to competitors such as Swissquote and Trade Republic, Flatexdegiro is worth significantly less on the stock exchange. The interim management will be taken over by two board colleagues until a new CEO is appointed.