FlatexDegiro heads for worst day ever as guidance cut, regulator audit hurt

flatexDEGIRO SE

05/12/2022 08:34

(Adds milestones, updates share move)
    ** Shares of FlatexDegiro  FTKn.DE  fall around 30%, on
track for their worst day ever after the German online broker on
Saturday cut its 2022 guidance and said it received special
audit results from German financial watchdog BaFin
    ** The Frankfurt-based firm expects to achieve FY revenue of
around 380 million euros ($402 million), compared to the
previous outlook range of 400-440 million euros
    ** It now sees 2022 adjusted EBITDA margin at 37%, down from
the previous forecast that estimated it at the prior-year level
of 42.4%
    ** Furthermore, German financial regulator BaFin demanded
the company to ensure proper business organization and temporary
capital requirements, following the special audit
    ** "Disastrous news Saturday evening," a local trader says
    ** Deutsche Bank says the revised guidance could imply an
earnings per share downgrade of 15%
    ** The FlatexDegiro stock hits the bottom of Germany's
small-cap index  .SDAXI  as Monday's fall wipes off 300 million
euros from its market cap
($1 = 0.9462 euros)
 (Reporting by Tristan Chabba)
 ((Tristan.chabba@thomsonreuters.com))