German Broker flatexDEGIRO Posts Solid Q1 Financials, Revenue Jumps 14%

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EBITDA of the platform jumped by 76 percent QoQ.

It also onboarded over 185,000 new traders in the quarter.

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The trading platform generated €118.1 million in revenue in the first quarter of the year. In addition, it highlighted that only 0.7 percent of its total revenue came from reimbursements from trading venues, a controversial practice popularly known as payments-for-order-flow.

It ended the quarter with an adjusted EBITDA of €54.5 million, which increased by 76 percent from the previous quarter despite a higher marketing spending.

“Leaving aside the first quarter of 2021, which was incomparable in all aspects, we have just delivered the best quarter in our company's history,” said flatexDEGIROs CEO, Frank Niehage.

Solid Customer Metrics

Indeed, the broker reported very impressive customer metrics too. The trading platform onboarded more than 185,000 new customers in Q1 of 2022, which is a jump of 31 percent. Additionally, it had a high retention rate of 99.5 percent.

Moreover, the number of trade transactions on the platform increased 11 percent to 21.9 million. The per transaction revenue on the platform came in at €5.39, touching a peak since the acquisition of DEGIRO.

“We achieved this in an environment in which peers are reporting significant declines in customer growth and where the trading activity of retail investors remains at a comparatively low level due to fears of interest rate hikes, rising inflation and war,” Niehage added.

“We also reported by far the highest profitability since the acquisition of DEGIRO, and this despite increased marketing investments in future growth. These figures confirm the success of our strategy to combine industry-leading growth with high profitability.”

Meanwhile, the broker signed an agreement with robo-advisory platform Whitebox to extend its B2B partnership.