Flow Traders sees growing operating expenses, bets on crypto

July 22 (Reuters) – Dutch trading services provider Flow Traders (FLOW.AS)reported a sharp drop in quarterly earnings on Friday and said it expected fixed operating expenses to grow by around 25% this year while it expands its expertise in crypto markets.

The group posted second-quarter normalised earnings before interest, taxes, depreciation and amortisation (EBITDA) of 36.5 million euros ($37.19 million), down 51% from the previous quarter, and also announced a new share buyback programme of up to 25 million euros ($25.47 million) over 12 months.

Its shares tumbled over 12% after the announcement.

Register now for FREE unlimited access to

Flow Traders, which listed on Euronext Amsterdam in 2015, said guidance had been adjusted as its total compensation mix shifts due to higher base salariesfor certain employee groups and the stronger U.S. dollar.

Best known for market making in exchange-traded products (ETPs), the company is seeking to build up a presence in crypto and digital assets, in addition to fixed income markets and single bond market making.

“We remain active in enhancing our coverage of fixed income, commodity, and FX (foreign exchange) markets,” Chief Trading Officer Folkert Joling said in an earnings statement.

The firm, which competes with privately-held Optiver and larger players such as U.S. group Virtu Financial (VIRT.O), said it had continued to provide liquidity in Europe, Middle East and Africa across the crypto markets.

“The recent volatility in the crypto markets has not altered our conviction around the long-term potential of crypto and decentralised finance,” Joling added.

The overall crypto market has slumped to around $900 billion, down from a record $3 trillion in November, with losses mounting after U.S. crypto lender Celsius Network in June froze the accounts of its 1.7 million customers. read more

($1 = 0.9815 euros)

Register now for FREE unlimited access to

Reporting by Juliette Portala and Lina Golovnya, editing by Izabela Niemec, Clarence Fernandez and Kim Coghill

Our Standards: The Thomson Reuters Trust Principles.

Source link

What do you think?

Written by Bitcoin

Jo Jung Suk's label warns fans of social media scams – allkpop

Kourtney Kardashian Addresses Son Mason Disick’s Alleged Social Media Accounts