Flow Traders sees growing operating expenses, bets on crypto (updated)

Flow Traders

22/07/2022 08:30

(Adds detail, quotes)
    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.
    Flow Traders, which listed on Euronext Amsterdam in 2015,
said guidance had been adjusted as its total compensation mix
shifts due to higher base salaries for 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.  urn:newsml:reuters.com:*:nL8N2Y92ZR

    ($1 = 0.9815 euros)

 (Reporting by Juliette Portala and Lina Golovnya, editing by
Izabela Niemec, Clarence Fernandez and Kim Coghill)
 ((juliette.portala@tr.com ; +48 587 696 607))