flatexDEGIRO AG

Thanks for joining our today's Q3 call. Let me start first by discussing our growth in the last quarter. We had a quite strong Q3, very satisfied Q3, very much in line with what we have expected and what we have communicated also in Q2. respecting back then a stronger Q3 than Q2 in terms of client growth, the acceleration in client growth, as well as in improving our margins on a holistic level. We managed in Q3 to grow to 1.9 million clients, which makes us coming very close to the lower end of our guidance of 2 million clients for full year 2021. So there's 100,000 more clients to win in the last quarter. And we started very well into the Q4 so that we expect in November to welcome our 2 million clients. The growth compared to last year, same quarter, is now at roughly 64%. So we grew our customer base by two-thirds. which shows also the steady growth of Latex de Giro and the successful growth path that we had over the recent 12 months. Also compared to Q2 2021, we achieved a customer growth of roughly 9% of 8.6% quarter on quarter. I think it's very important to put this into a bit of context to illustrate what this number literally means. because some could argue that it looks relatively low. But if we would continue exactly with this growth speed of 8.6% for the next quarters, it would literally mean that we will reach the upper end of our vision 2026, i.e. 8 million customers already at the end of 2025. I think this is a very great opportunity success that we achieved over the last three months by focusing very strongly on our strengths, by starting also a couple of marketing campaigns, by repositioning also our market communication and marketing communication with both brands, FlatEx and DeGiro. If we look into the settled transactions, we did in Q3 18.2 billion, which is 32% higher than last year's same quarter. I think it's important to note that the volatility last year's same quarter was much higher than this quarter. We see a further normalization of volatility, which we actually previewed in our Q2 call. And I highlighted it that we expect that the trading activity will go back to a normal environment where clients do an average between three to four transactions per month. So we're talking about 40 in average per year. This is exactly what we saw also in Q3. This is very much in line also with the seasonality that we have seen historically for Q3. For Q4, we absolutely um estimates a higher activity again q4 is usually given the seasonality and history the much more volatile quarter so that we can expect also again a slightly increasing trading activity of the client base what is important um despite the uh the the drop between q2 2021 and q3 2021 is what we always have said, that the key focus for us as management is to win clients, to win qualitatively high clients, not only about math, but also to define our own business and our own philosophy by quality, that our customer growth literally overcompensated fluctuation in trading activity. And that we always have assumed that trading activity will normalize, But as a management, the clear duty is to continue to grow with clients, which we did very well in Q3 and which we expect to continue very well in Q4. If we go from the commercials to the financials, have a closer look to the financials, our revenues are slightly below Q2 2021 with 88.1 million euros. which is very much in line with the drop in the settled transactions, or the decrease in settled transactions. However, revenues didn't decrease as much as settled transactions decreased, and the result is that we managed, and we will come to this in a second, we managed to increase the revenue per trade, given also previewed discussions and previewed topics that we discussed in Q2. The adjusted debit DA is up 39% versus last quarter. Sorry, yeah, same quarter last year, up from 33.5 to 38.5 million euros. It's quite interesting also here to see how well we managed to increase the margins and how well we managed also to leverage synergies over the last 12 months. by increasing also our margin levels. Compared even to Q2 2021, despite lower revenues, we managed to increase the adjusted EBITDA by 14.9, so almost 15%. Just to remind you, the adjustment on the EBITDA is literally only the adjustment for stock appreciation rights evaluation. and one-off expenses that we had with respect to the merger of Gjiro. All in all, a very successful Q3 2021. We are very thankful and very humble in a turbulent time that we also saw to keep up the pace and to keep up the growth that we started this year. I mean, we always grew by 650,000 clients since the beginning of the year. and are very keen and highly convicted and confirm again, obviously, the four-year guidances that we gave out. And yeah, I'm looking forward now for the last, from now on, only eight, nine weeks until year end. As I said, we started quite well into the Q4. And let's go into the next slides and see what we did in the past and what is ahead of us. As I said, if we look into our accelerated organic customer growth over the last two years, we see a steady, strong growth year on year. So over the last 12 months, we have achieved 64% of growth in the customer base. We have thus led our whole business to face where we became literally Europe's largest online broker. When we started last year, or actually when we started, when we took over DeFiro, we were literally somewhere around, I think, rank eight in Europe. And in less than two years since signing, and only less than one and a half years since closing, we managed to take the pole position online. in Europe with respect to number of customers as well as number of transactions. Let me use that moment to thank everyone in the company, all our employees, all our stakeholders and supporters, all our investors for the trust, but also for the hard work that was put in over the last 18 months and especially the efforts that our colleagues put in and in a very tough time surrounded by all the COVID stuff. and developing such a beautiful business model and such a successful business model, despite all the difficulties, despite all the challenges we had externally imposed. We did super well, are now at the pole position, and now it's about to lead the race and to continuously lead the race, to widening the mode, and to show everyone that it's well-deserved to be number one But as always, it's sometimes easier to become the number one than to stay the number one. So this is what we are now focusing on over the next years. As I said, much more important is that we continue to outgrow all our major peers, both in absolute numbers as much as in relative terms. We outgrew again in the nine months number two and number three in Europe. even together, which is again a very, very strong development. The market growth is obviously for some of these players limited because they are operating only domestically. Our community is Pan Europe. We are in 18 countries operationally active, which allows us also to penetrate totally different markets. Having a centralized system, IT system and own house IT system and this 100% more or less verticalized business model operating all these 18 countries out of literally three countries gives us a massive strategic advantage that we will continue to roll out over the next quarters and years. In 2021, we will even outgrow our own record of the COVID year 2020 already after nine months. So I can even say that in October, Literally, we met the 75 million plus trades. So as of today, we already have outgrew our last year trades. Again, keep in mind, despite the massive volatility that we had last year, so massive trading activity, which I think shows everyone what achievement that is. in 2021 with less volatility after less than 10 months to actually beat the trade size of last year. The gap is widening to our peers. So we will continue to widen this gap. As I said, we'll continue to widen the modes around our castle and our setup. And this is what we are now focusing on going forward. normalizing trading behavior i mentioned it we have previewed it in q2 already we said that the trading activity in q2 and q3 uh will go down will normalize back to levels of 40 trades on an annualized base on the quarter um this is literally what happens um again absolutely as expected But as I said as well, Q4 and Q1 are again, then the turbo quarters usually, um, in the brokerage business so that we can assume for Q4, um, a slightly higher activity and in Q1 as well. Um, we're well prepared, um, for, for these upcoming now five months, um, both in both terms and trading activity of our existing clients, as well as in a customer growth. Um, I think it's also obvious that we expect to beat the growth of Q3 versus Q2. Also, given that we have increased our initiatives, our product initiatives and our marketing initiatives, we will come in a moment to that and go a bit into detail what we have started and what we are going to start. We are well positioned with our pricing, with our super low fee pricing that we have. with DeGiro all over Europe and our key pricing that we have in our core markets, such as the Netherlands, Germany, and Austria that are for us, so to speak, the cash cows that allow us also to grow into these new growth markets like France, Italy, Spain, Portugal, and so on and so forth. The LTM revenues. almost doubled since Q3 2020. Yes, indeed, and obviously due to a higher number of transactions. But also very important to see is that we always said we want to try to keep and not to dilute too much our revenues to trade. We knew that we have started in the beginning of this year and last of end year, actually in Q4 2020. We started some marketing campaigning that were obvious to have a dilutive effect on our revenues, especially in the first and second quarter of this year. Most of you might remember at the H1 conference call that I said we will see again a pickup in revenues per trade. in Q3 because what we offered back then in Q4 2020 and Q1 2022, and until today actually, to offer especially flat X clients, which is by the way, the market with the highest revenue per trade, to offer these clients the first six months zero fee trading will have a dilutive effect on our total revenues per trade because you literally reduce your average revenue per trade from from six to seven euros down to literally zero this will have an overall impact this is exactly also what we saw in revenues per transaction um that we have achieved in q3 2021 ltm the highest revenues per trade and we will continue to achieve high revenues per trade especially given the mix yes we are going to grow in markets with very very low fees That means that it will dilute also the revenues per trade over time. But again, here we have a very clear strategy with respect to our pricing. We see a high level of profitability, especially given the beautiful leverage and scale that we have with our system and with our platform. So we can afford to dilute somehow to a certain level our revenues while increasing our margins with customer growth and trade growth. I think a very interesting KPI is the ARPU. You see very clearly that we managed over the last 12 months to keep it relatively stable. For sure, in Q3 2021, you see a slight drop. This has to do with the fact that in Q2 and Q3, we had obviously a massive number of clients that came out of Q1 while trading activity was going down, so that you have a smaller numerator, but an increasing denominator, which results then also in fact in lower ARPUs, but still achieving 280 euros of annualized revenue per client is one of the market leading ARPUs that you would find in online retail brokerage. The phasing out, as I said, of the zero fee campaign Q4 2020 and Q1 2021 is the key driver for the higher monetization. In the same time, I'd like to highlight also that our retention rates, the high retention rate, still maintained. Even after nine months, the retention rate of our clients is at 98% plus, so the churn is absolutely low. We are winning the right clients. we are losing the right clients. Let me put this also very clear. Most, I think most of our churn in terms of clients is less than 2%. In terms of revenues, we are talking of less than 0.5%. So clients that leave us are usually inactive clients, clients that stop trading for whatever reason, or maybe go somewhere else. Yes, for sure. The key point is not to lose your good and your great clients. This is exactly what we have achieved. With respect to the ARPU, again, I don't want to compare it. I think you all can do the comparison to many, many benchmarks and peers all over Europe or even globally. If I'm not mistaken, we're generating today in ARPU, which is in the last 12 months, which is four to five times higher of some big names that are going around in online brokerage. Purely and mainly out of classic retail brokerage without any crypto revenues. If we look into the profitability of our business, we had in the full year 2020, 114 million adjusted Avid DA. are already far above that adjusted EBITDA level after nine months, to be precise, by 32 million, achieving still very, very high margins. Again, the high margins for us are important to show the profitability of our business. Despite lower trading activity, despite increasing marketing spend, And despite many one-off effects in connection with the DeGiro merger, mainly in Q2 2021, we are outperforming our own benchmark. And this again goes back to a high scalability of our system, to high economies of scale that obviously start also to come in place more and more. And very often we all forget that the DeGiro transaction was only closed 14 months ago. And as I said, we are very humble and thankful for the development we had over the last one and a half years, especially if you look into the value creation in the company. But let's not forget it's only 14 months ago. It needs some time. It was a big merger for us. We doubled the number of employees. We had to bring cultures together. We had to bring systems together. We had to bring products together. We have to handle and to manage two different brands. We have to handle now 18 markets. So absolutely, I can speak for myself and for Frank, my CEO. I can absolutely say we are absolutely proud to what the team is actually bringing every day to the table and going through stormy weather over the last one and a half years. So profitable and so strong. So, yeah, I was saying about the milestone that we have achieved over the last 14, 15 months since we closed the transaction. And again, we only merged six months ago. It's literally exactly six months ago. We have introduced with DeGiro the early and late trading across Europe, which is a very, very strong step. We already have every month a high six-digit number of trades going to TradeGate all over Europe. So it was absolutely the right decision to bring this product live to the market and to clients to retailize the capital market access, to allow people to trade before nine in the morning and after 5.30 in the evening. A very important step in our strategy and in our mission or to reach our mission. We introduced only four weeks ago Next 3.0 from pull to push the new FlexX app. By the way, also something I'm very proud of, especially proud of the team that they have put up a product that on the app stores enjoys one of the absolutely highest ratings of all financial services products, even higher than many of the competitors and peers and neobrokers that usually understand UI and UX as their USP. Our team, literally our people, are setting up products that are performing and rated much, much better than many, many, many others. We have now, and we are currently in the introduction of crypto trackers that will become available on Flatex and the Dehero platform. We are currently rolling out the products and are setting up the scene to inform our 2 million clients that they can trade now crypto ETFs and ETNs, both on Flatex and Tejiro, which is the first step in our crypto strategy. As we said, we don't consider it as a market driver, as a growth driver per se. It's going to be a first step of our virtualization. Our key and core focus will continue to be on the classic retail brokerage, so European and US stocks, ETFs, mutual funds and our etp products but we see a high demand by clients for these products all over europe we see the availability um by the the given and listed um trackers so uh this is the first step to allow our client base to trade um cryptos and crypt sorry crypto trackers uh without opening an own wallet without opening an account with with any third party crypto brokers and to participate immediately on the development of, if I'm not mistaken, two or three different cryptocurrencies, which is Bitcoin, Ethereum, and there's a third one. Yeah, a corporate structure measure was the stock split that was executed to further increase the liquidity, which was also an important step for us to make as a broker with the philosophy and the mission to retailize capital markets to make our own stock more investable and to further increase the liquidity. This is going very well so far. Coming to the upcoming initiatives, we are launching this month the ETPs on a European scale with DeGiro. We will launch the ETPs offered and issued by BNP Paribas. and Societe Generale, the two European leaders of ETP products to our client base in Europe. A big step for us. It's the second product that we literally cross-sell from FlatEx then to DeGiro after the TradeGate offering to have then now the ETP offering. We'll continue to build on our educational marketing approach by having a high-class documentary currently being finalized to be broadcasted all over Europe and sponsored by Dechiro and Flatex to continuously educate the 280 million non-brokered clients to explain to them what brokerage is really about. It's not about to trade 500 euros in GameStop in and out, but about much more to prepare for their own retirement, for their own pension, for their own dreams, To put more in focus, we have an environment that is heavily driven by negative interest rates. We all are experiencing that. Alternative assets like real estate are becoming more and more expansive. We see still the capital market as one of, actually as the most fungible market for long-term investment. And this is something that we will highlight in our documentary, as I said, that will be broadcasted very soon. Last but not least, we are now, as I said, in the Q4, preparing also for Q1. So these two quarters will be strong quarters in terms of marketing initiatives, marketing campaigns in all our major countries. We are preparing a lot of ideas, a lot of stories that we are going to tell to our clients and to hopefully potential clients to make them more and more attracted to capital markets and by allowing them unique access to capital markets that many, many, many others cannot. I again and again would like to reiterate, we offer mainly top tier exchanges for our clients, no weird market makers, no intransparent pricing, no this and that. It's about clear structures, clear products, clear exchanges, allow clients to trade at tier one exchanges, NYSE, NASDAQ, Cetra, Euronext for as little fee as possible. And this is absolutely the strategy that we'll continue with going forward. I think we're coming to the end of my presentation. Again, a big thank you for listening. A big thank you to the team in the name of Frank and myself for the great achievement. We're looking forward to continuing this growth, this potential. And as I said, now it's about, before we were the followers, the chasers, now we are the pacemakers. I feel super comfortable with this position. I'm looking forward to having the thousand colleagues with us to provide the best possible results going forward that we can. Thanks a lot. I'm happy to hand over for any questions.

Our first question is from Manson from Deutsche Bank. Please go ahead.

Hi, thank you very much for taking my questions. So two questions from my side. The first one is the customer growth base. So you mentioned that you expect to achieve the 2 million customers in November. So would you mind to share with us the first side of October and November development in terms of customer growth? And when exactly do you expect to achieve the 2 million customers in November? So at the beginning of the month or mid or end of November? And the second question is on the crypto tracker. So do you mind to elaborate a little more on the monetization opportunity for these products? So are these charged as the same way as the equity products, or are there any additional charge on that? Thank you very much.

Yeah, thank you very much for your question. Towards your first question, when we are going to achieve the 2 million clients, Again, it's now not about to count days. We're coming into a discussion that started in years, now to quarters, now to days. We're going hopefully to achieve the 2 million clients in November. And this is our clear communication. And to be honest with you, no one is really taking care of whether it's the 15th or the 22nd or the 28th or the 30th of November. Again, what we're saying is that we will reach the lower end of our guidance um far before the end of the year of which we are absolutely proud um towards the question with your uh with respect to the crypto trackers crypto trackers will have the monetization system like all other etfs and ppns so clients have depending on the country and depending on the market to pay first and foremost the fee to to trade these products um but and that's i think a very important point If you keep in mind how big the spread is usually in these crypto direct trading, one advantage is that we can offer these products at a very, very low fee. And the first and foremost point is not the monetization with these products. We think that these products could attract more clients to also come to us to go then across other assets like stocks or like ETFs or even like ETPs where we can drive much more than monetization. So it's very much like with our ETF offering that we have in general in place, where we have a very, very low monetization to be fair, but that usually act as a base to attract new clients. And as you know, very often, it's not about the clients trade either or. So it's not a mutually exclusive decision whether I try to trade equities or crypto trackers, but it verticalizes our products, It increases our service levels towards our clients. It increases the comfortability of our clients. And it increases, obviously, the trust that clients have in us taking these products as well into our offering.

That's very clear. Thank you very much.

You're welcome. The next question is from Marius Hurwatz. Emmen Warburg. Please go ahead.

Yeah, hi, Mo. Two or three questions from my side. The first one, how many adjustments were made in Q3 with regard to the adjusted EBITDA? I can imagine that should not be too big of a number. The second one, In light of the extended marketing campaign you are driving right now in Q4, what do you expect the margin to develop? Or in other words, how many further costs should we assume for Q4? And the fourth question maybe also with regard to cryptocurrencies. I understand that you add a few crypto ETFs now, but would you or do you also consider enabling real cryptocurrencies on your platform or do you still look for partners and a regulatory environment that would put you or bring you in a position to do so?

thank you Marius for your questions the first one the adjustment it was a single digit million amount so absolutely not significant to what we had in general and very clearly for us important is to keep in mind what the operational leverage is so with respect to your cost idea and cost question yes for sure I mean as I always said Q4 and Q1 are the most important quarters for us, where we will also increase the marketing setup and the marketing spend, but not in a way to burn money. It's about the investment appropriately, which we started now with and will continue over the next five, six months to cover Q4 and Q1. In terms of how much we're going to spend, it's always a question of what we budget, but also a question of the market. And again, we are willing to pay 40 to 50 euros in average per new client. So if we win over the next six months, whatever, half a million clients, for example, we are willing to spend also 20 to 25 million. It's not that we consider marketing month by month or quarter by quarter. The most important point is that we managed over nine months to win clients for as little as 35, 40 euros and generate an average LTM RPU of 280 euros. For every marketing dollar that we spend, we get literally $8 back in revenues. This is the clear strategy, irrespective of when we spend what. That is absolutely the clear strategy of us as a company and the philosophy. Let's take care of whether we spend the money this week or next week or the week after. And thus, we will have continuously, and we will have continuously shifts in margins and costs quarter by quarter. And this is why we have added up now also as an informative line, let me put this also very clear, the adjusted EBITDA before marketing. purely as an informative line to see, okay, what is the business generating if we would stop our marketing, which we literally wouldn't, because for every marketing dollar that we spent, we generate eight in revenues. This is seven to eight, which is one of the best business models that I have seen, although I'm maybe a bit biased being manager and shareholder of this company. With respect to crypto, we are continuously widening the product offering to our clients. And we will continue to verticalize the business model. And crypto is one opportunity. We have discussed it also a couple of times. There are a couple of question marks that we have to solve from regulatory perspective, from safety perspective, especially with respect to our clients, to ensure secure wallets, to ensure secure custody, how we can ensure also system that does not in any way harm our customers wealth and this needs a diligent analysis and we are discussions with the many many many participants in the market we're getting closer and closer to a result where we hopefully can also offer our clients direct investment into into cryptos and but we still have to do our homework. Unless we have something to communicate, to say, hey, we are there, we are alive, we can provide it, this is what I can say.

Okay, thank you very much.

You're welcome.

The next question is from Christoph Gorich from Bernberg. Please go ahead.

Yeah, good morning, Mo. Thanks a lot for your presentation, for taking my questions. You're welcome. Hi, Chris. Yeah, my first question is with regard to the phasing out of the free trade from your customers that you mentioned and the positive impact on the revenue per trade. Has that also impacted the trading activity in the sense that these customers have started to trade less once they have to start paying for the trades?

Very good question. No, but it's literally the right question. No, absolutely not. The transaction, the average transaction for client, the development of the trading activity is absolutely in line, literally absolutely in line with our seasonality and volatility expectations. So we don't see an above average drop in trading activities. And to put it also, or to give you a different perspective on that, if this happens so if the trading activity of these clients that were able to trade for the first six months zero and now have to pay if these clients stopped trading we wouldn't have seen an increasing revenue per trade obviously because then the revenue per trade must be still at a lower value as well because they don't contribute any revenues anymore. So neither from the data that we have and that we've seen, we can confirm that nor logically with respect to the revenues per trade that we have achieved.

Yeah, that makes sense. My second question is with regard to the introduction of the early and the late trading at this year. Did you have any numbers that you could provide that kind of shows how successful that has been so far? For example, how many of the customers have been actually using it?

I don't know whether maybe you didn't get it or something in the line. I said at the beginning. So we have today only on the DeFuro side significant six-digit number of trades every month and only after eight weeks after introducing it of trades that go already to trade stage.

And how does that compare to FlatX?

What do you see in there? I mean, as you know, we don't disclose numbers on FlatX or Hero. The only reason why I do it with the Hero is now to give you an understanding how well it develops with the Hero. But we will not give splits between countries or between brands. Okay. Let me rephrase it and to give you another anchor point. TradeGate is doing as of today, so after eight weeks, almost as good as Xetra with Dejiro. Starting from zero, we're getting as high with trades per day at TradeGate almost as much as with Xetra.

And then on the marketing budget for Q4 and Q1, so how is this split across your various markets? What are kind of the key countries to which the overall marketing spend will be skewed?

Yeah, absolutely. The strategy has not changed at all. We have our core markets, Netherlands, Germany, and Austria, where we do always-on campaigning and very clear campaigning to continuously win clients in these core markets, in the Also, let's put it that way on the high price markets, but also on the cash cow markets. At the same time, we are preparing massive marketing campaigns to be rolled out in France, Italy, Spain, Portugal, our core growth markets, and UK, Ireland, obviously, as well, to drive also these markets where we have a general one, maximum two competitors, highly overpricing their services, which we today, I mean, keep in mind, you can trade US equities in these markets for as little as 50 cents with Dejiro. So where we are trying to exactly penetrate these markets and compete with these incumbents. So this is also the growth structure and the growth strategy. So a very significant portion of our marketing budget will go into these countries that have a high potential that have a low competitive landscape and have very good conversion rates with respect to client acquisition costs.

Is it fair to say that you will spend more for marketing on the growth markets compared to your core markets?

No, it is not fair. It's fair to say that in average, we will not spend more than 40 to 50 euros for every new client, irrespective of where the client comes from. Again, we don't consider this business country by country. We have two, three markets, the core markets and the growth markets. We will spend in both markets as much as we can to win as the best possible quality of clients with also certain quantities.

Great. And then lastly, one question on the ETP introduction at this year. Will the pricing for the clients look similar to what you currently have at Flatex, or will that be different?

It will be slightly different. We have already included it in some of the pricing schemes, so clients can trade these products for 50 euro cents.

Okay. Yeah, that's all from my side. Thank you very much.

You're welcome. The next question is from Benjamin Kong from KBW. Go ahead.

Good morning, Mo. Thanks for taking my question. A few, please. First of all, could you be so kind and update us on the evolution of your product offering in new markets? What I mean by that is really the sort of administrative enhancement, if this is the right way to frame it, like the PA accounts in France, on-site custody accounts in Switzerland. So all these things that you mentioned in your strategy day, tax services in Portugal, Spain. Are you there yet, or is this still in preparation, so to speak?

Absolutely. Important points. We're getting very close with the tax services. We have finalized them in Italy. We have finalized them, or are finalizing them, this quarter in Portugal as well. um with respect to the pa accounts we are preparing currently set up we are already in discussions and analysis um so we are progressing very well but um also to keep in mind that i mean there's a limited number of resources since we do everything internally and in-house um to not outsource any intellectual property um these topics were for us important they were driven forward um but also as indicated it's rather result driven in q1 and q2 2022 But on top of that, the administrative back office structures are very important because especially with growth, we need also obviously to scale these structures, focusing on core structures like corporate actions, like security account transfers. This is what we are focusing on mainly, what my colleague Jens Möwitz is doing with his back office global team. But on top of that, yes, for sure, we are progressing also with this country-specific, let's call it that way, country-specific products.

Okay. But by and large, fully on track with regard to your, you know, compared to your timeline?

Absolutely. I think the number of clients and new clients, one, indicates how well the product is perceived in these countries as well.

Thank you. And just a quick one around the launch of FlatX 3.0 or whatever you want to call it. And you indicated that you're very happy with the launch, lots of good customer feedback. Just wondering, could you give any sort of early indication on the sort of customer profile you're attracting with this more simplified version? Any significant differences you really see here or everything kind of as expected?

Per se, we see that the average age of new clients is slightly below what the customer base average age is. So it's not anymore 37, 38. It's rather the average 33, 34, which is not only driven by the product itself, to be honest with you. We consider the product itself just to be a way how to allow also existing FedEx clients to make much easier transactions. But to allow clients much more to be involved with saving schemes, with ideas, with information. So it's a super important product. But it's also important to understand that less than 8% of our total growth is coming from Germany. So 92% of our growth is coming from other countries in terms of customer growth. So it's important also to understand we are not day and night working only on Germany. It was an important step with this platform because we had the resources to develop it in Germany and to try it out in Germany. It goes very well, by the way. We have a very high double-digit percentage. I have to double-check it. If I'm not mistaken, it's around 40% plus minus of logins that happen today already via FlexX Next every day. So it has a high penetration. People love the product. They like it very much. It's about now to continuously develop it. And obviously the ultimate aim is to roll it out then on the DeGiro platform as well.

Yeah, that's clear. Is there any indication about timing on rolling it out to the new countries? Not yet. Not yet. Okay. Thanks, Mo. And then final one, very quick one. Any sort of high level remark on the contribution of the tech segment in the third quarter? A low single digit, high single digit, Euro million amount?

No, no, no, no. Absolutely, absolutely, absolutely linear to what you've seen in H1 as well. So there is no specific IT income. The IT income is per se super flat. So there is no growth at all. I mean, literally, I think it's zero. So no any impact on the revenues that could dilute the total revenues at all. So in total level, we are speaking about less than 5%. Good.

Thank you very much, Mo. Perfect.

You're welcome. If you have a question for our speakers, please dial 01 on your telephone keyboard now to enter the queue. If you have a question for our speakers, please dial 01 on your telephone keypad now to enter the queue. There are currently no more questions. Mr. Xiaohu, please go ahead. Thank you.

Thank you very much for attending our today's quarterly earnings call. Thanks a lot for your questions. Again, thanks everyone that supported us, contributed to us. Thanks for the trust of all the investors in our performance and our work. Looking forward for the last eight to 10 weeks of this year and to close this year as a seventh year in a row under Frank's and my management as a record year. We're very proud. We'll continue to stay humble. We'll continue to work hard on achieving our big vision, 2026. We're all in. So thanks a lot. All the best. And hope to see and speak most of you soon over the next weeks and months in different roadshows. Thanks a lot. Take care. Goodbye.