Results and Financial Statements
Last update January 10, 2020:
Directa's Facts and Figures
Directa is a private company with capital stock of 6 million. It is controlled and managed by its Chairman Massimo Segre, and significant shares are held by Mario Fabbri, ex Managing Director until January 2020 and Andrea Grinza, ex Chief Financial Officer.
Since January 2020, Vincenzo Tedeschi has succeeded Mario Fabbri as Chief Executive Officer.
The birth, start-up and development of a company like Directa are charted very clearly in the evolution of its Income Statement.
The company’s financial statements do not reflect positive or negative contributions from trading in stocks: to protect its equity, Directa executes operations on its own behalf, and invests its liquid assets exclusively in fixed income securities.
A detailed account of the company's growth follows, going backwards from the present to its creation.
Directa closes an exceptional 2020
Turin, 7 January 2021.
2020 for Directa has been a year marked by significant volume growth.
On the Italian stock market, the number of orders executed increased by more than 40%, with a performance significantly higher than that of the orders executed by Borsa Italiana (+ 35.8%).
The intermediate trading volumes showed an even more striking distance, with growth of 17.4%, almost double that of the market itself, which achieved an increase of 9.6%.
In comparison with 2019, the markets where the main futures contracts are traded showed a net expansion: Idem (+ 30.8%), Eurex (+ 38.8%) and CME (+ 42.9%).
L-MAX listed CFDs showed a smaller growth but still robust, marking a +23.2% of the number of traded contracts.
The real boom, which is unmatched in Directa's history, took place on the US equity markets, where the total number of executed almost quadrupled, with a final increase of 273%.
Overall, the trading orders executed increased by 53.3%.
Accounts opened as of December 31, 2020 grew by 33.5% to 35,669.
Directa has now 160 partnership with banks, from 163 in 2019: this year there were two new partnership, one closing and some mergers.
Vincenzo Tedeschi, Chief Executive Officer of Directa Sim, said: "2020 gave a great advantage to the online trading industry as people, as a consequence of the sanitary emergency, have rapidly increased their digital approach to their activities, and consequently also to the management of their investments.
Directa has done better than the market, and the merit goes to its collaborators, a solid and professional team that has been able to manage the emergency, while ensuring high quality standards of customer service. The sector is constantly changing, not everyone has weathered the storm unscathed; Directa, on the other hand, has strengthened and is well positioned to better manage opportunities in this 2021 as well”.
The shareholders' meeting of Directa approved the 2019 financial statements, which closed in substantial balanced position (profit of €1,369).
Despite the difficulties, the number of accounts receivable continued to grow throughout 2019, closing the year at 27,900 (+20%) while the decline in net commissions, which remained low at the end of the year (-8.3%), was largely offset by an increase in the margin from interest (+25,1%).
During 2018 the number of orders executed on the italian stock market was 1,63 million (-10% from 2017).
Orders placed on the American market were 94.869 (+30%).
The number of futures/CFD contracts on IDEM, CME, EUREX, added to the Forex orders on LMAX exchange amounted to 1,66 million (+1,8%).
The number of active customers has increased to 20.507 (+7%), Directa has 186 active conventions with credit institutes now (up from 176 at the end of 2017).
During the year of 2017, Directa's customers have traded on the Italian stock market an amount of 26.3 billion euro (+ 22% compared to 2016, to be compared to the - 1.4% of the Borsa, the Italian stock exchange).
The number of transactions on the MTA fell to 1.82 million, and it has shrunk by 13%, to be compared to the - 8.5% of Borsa, the Italian stock exchange.
The number of orders placed on the American market amounted to 73,138 (+ 2%) over the past twelve months.
The total number of futures/CFD's contracts on IDEM, CME, EUREX , and the FOREX orders on the LMAX Exchange was 1.63 million (+ 2%).
The number of Directa's operative customers has grown to 19,149 (+ 4%), while partnership agreements between Directa and the banks were 176 (from 200, due to mergers between the banks).
During the year of 2016, Directa's customers brokered an amount of € 21.65 billion on the Italian stock market (- 33% compared to 2015, to be compared to a -22% of Borsa Italiana).
The number of transactions on the MTA decreased by 17%, to 2.09 million.
Orders placed on the American market amounted to 71,767 (-15%) over the past twelve months.
The total number of futures/CFD contracts on IDEM, CME, EUREX and FOREX orders on the LMAX Exchange was 1.6 million (-11%).
The number of Directa's active customers has increased to 18,384 (+ 2%), while the number of partnership agreements between Directa and the banks fell from 207 to 200, but only because of mergers that took place between banks
Directa's Shareholders Meeting has approved the financial statements of the year 2015, which ended positively this year too, with a net profit of 866,822 euros, compared to 455,937 euros for the previous year (+ 90%).
The number of transactions carried out by customers was a total of 4.9 million (+ 14%).
The number of operative customers has increased by 471 units, to 18,013.
the number of Partnership agreements between Directa and the financial institutions has grown from 201 to 207.
More data on Directa's operations in the year 2015:
- brokered in the cash markets 38 billion euros (-6%)
- executed cash orders: 3.1 million (-1%)
- futures contracts executed: 2.43 million (+ 104%)
Directa's Shareholders Meeting has approved the financial statements of the 2014, which ended positively this year, with a net profit of € 455,937, against € 303,067 in the previous year (+ 50%).
The number of transactions carried out by customers was a total of 4.3 million (+ 10.3%).
The number of active customers has increased by 229 units to 17,542.
The number of partnership agreements has also grown from 192 to 201 between Directa and the partner Banks (199) and 2 financial brokerage firms (Sim).
In the month of October, 2014, the fifth edition of Directa’s University Trading Challenge has begun, which saw the new record of 129 universities, against the previous 112, from 12 different countries, for a total of about 505 students.
More data on Directa's operations in the year 2014:
- brokered in the cash markets: € 40.6 billion (+ 7.1%)
- executed cash orders: 3.14 million (+ 11.3%)
- futures contracts executed: 1.19 million (+ 0.8%)
Directa's Shareholders Meeting has approved the financial statements of the 2013, which ended positively this year, with a net profit of 303,067 euros, against 404,075 euros in the previous year (-25%).
The number of transactions carried out by the customers was a total of 3.9 million orders (-4.8%).
The number of active customers has increased by 54 units, to 17,313, and the number of agreements has grown also from 180 to 192 between Directa and the partner banks or SIM (190 and 2 respectively)
The trading service has been improved, particularly with the extension of trading hours on the Forex markets (LMAX Exchange and CME) to 24 hours.
In February, 2013, Directa acquired a stake in the LMAX Exchange, aimed at strengthening the collaborative relationships between the two companies, given the growing weight that the Forex market is having in Italy with regard to the private online trading sector as well as the importance of the same in projects of Directa's foreign expansion.
More data on Directa's operations in the year 2013:
- brokered in the cash markets: € 37.9 billion (+ 6.2%)
- executed cash orders: 2.82 million (-9.6%)
- futures contracts executed: 1.18 million (+ 10%)
The stockholder meeting has approved the financial statements for 2012, which closed with a net profit of 404.075 versus 600.735 of the previous year (-32.8%).
The number of order performed by customers was a total of 4.1 million (-12%).
The number of existing customers was reduced by 562 units, to 17,259, following the imposition of stamp duty on the accounts. Conversely, the number of agreements between Directa, Banks (178) and brokerage firms(SIM) (2) increases from 172 to 180.
Additional Directa operations' data in 2012:
- Brokered on cash markets: 35.7 billion euro (-13.2%)
- Cash orders executed: 3.12 million (-8.7%)
- Futures contracts executed: 1,066 million (-20.9%)
- Gross commissions: 12.4 million (-15.3%)
The financial statements for the year 2011, closed with a net profit of 600,735 compared to 401,661 the previous year (+49.5%).
The total number of operations executed by the clientele amounted to 4.7 million (+9.3%).
The number of trading clients is also positive, growing in 2011 by 522 units to 17,821 (+3%), and conventions with Italian regional banks increased from 163 (including 2 SIMs) on December 31, 2011 to 172 (+6%).
Additional data regarding Directa operations in 2011:
- brokerage on cash markets: 41.2 billion, substantially unchanged
- cash orders executed: 3.42 million (+8.9%)
- futures contracts executed: 1.33 million (+15.7%)
- gross commissions: 14.6 million (+6.2%)
The financial statements for 2010, closed with a net profit of 402,000 compared to 585,000 in the previous year (-31%).
There was a moderate contraction in the number of transactions executed by the clientele: a total of 4.3 million (-13.8%).
The data for trading clients was very positive; they increased by more than 1,000 units in 2010, reaching 17,299 (+6.6%), and conventions with brokers increased from 146 at the end of 2009 to 163 today (+11%), including 2 SIMs (+11%).
Additional data regarding Directa operations in 2010:
- brokerage on cash markets: 41,2 billion (+10.5%)
- cash orders executed: 3.14 million (-20.3%)
- futures contracts executed: 1.15 million (+9.5%)
- gross commissions: 13.8 million (-3%)
The Stockholders Meeting resolved not to distribute a dividend in order to strengthen company equity.
The financial statements for 2009, closed with a net profit of 585,000 compared to 1.2 million the previous year (-51%).
There was a moderate contraction in the number of operations executed by the clientele: a total of 4.99 million (-6.5%).
The data for trading clients was very positive; they increased by approximately 2,000 units in 2009, reaching 16,225 (+14%), and conventions with italian regional banks increased from 129 at the end of 2008 to 146 today (+13%), including 2 SIMs.
Additional data regarding Directa operations in 2009:
- brokerage on cash markets: 38 billion (-25%)
- gross commissions: 14 million (+2.4%)
- cash orders executed: 3.94 million (-3.8%)
- futures contracts executed: 1.05 million (-15%)
The Stockholders Meeting resolved not to distribute a dividend in order to strengthen company equity.
The financial statements for 2008, closed with a net profit of 1.2 million, compared to 2.65 million the previous year (-55%).
In spite of a long period of stagnation in the middle of the year and the serious crisis on the financial markets at the end of 2008, the number of transactions executed by the clientele (a total of 5.3 million) was only marginally below that of 2007, falling by just 3%.
In 2008 the number of trading clients grew by 6% to 14,234, while the number of regional banks signed up with Directa reached 129 (+ 13% compared to the end of 2007).
Additional data regarding Directa operations in 2008:
- brokerage on cash markets: 52 billion (72 billion), -28%
- gross commissions: 13.9 million (14.9), -7%
- cash orders executed: 4.1 million (4.3), -5%
- futures contracts executed: 1.24 million (1.23), +0.8%
The financial statements for 2007 closed with a net profit of 2.65 million compared to 1.75 million for the previous year (+51.4%).
The highlights of Directa operations in 2007 were:
- brokerage on cash markets: 72 billion ( 51.9 in 2006), +38.9%
- gross commissions: 14.9 million (12.8), +16.6%
- cash orders executed: 4.3 million (3.8), +13.1%
- futures contracts executed: 1,237,397 (716,573), +72.6%
- trading clients: 13,384 (12,455), +7.5%
- banks signed up at year end: 114 (100), +14%.
The financial statements for 2006 closed the year with a net profit of 1.75 million (+23% compared to the close of the previous year).
Brokerage on cash markets: 51.9 billion (+27%).
Cash orders executed: 3.8 million (+14%).
Futures contracts executed: 716,573 (+33%).
Trading clients: 12,455 (+5%).
Banks signed up at year end: 100 (+16%).
The financial statements for 2005 closed with a net profit increased to 1.2 million.
Gross commissions received totalled 10.8 million (+25%) and brokerage on cash markets totalled 40.8 billion (+39%).
Total cash orders executed numbered 3.3 million (+28%), derivative contracts totalled 539,000 (+25%), trading clients at the end of 2005 were 11,901 (+3.3%), and banks signed up 86 (+15%).
The financial statements for 2005 closed with a net profit of 93,921 compared to 70,781 in 2003.
Commissions totalled 8,694,000, while brokerage on cash markets (Italian and US stocks and covered warrants) totalled approximately 29.4 billion.
The number of contracts executed on derivative markets totalled 430,776, 52% above the previous year. From July, the services on offer also included the possibility of operating on the CME-Globex.
With 11,033 trading clients, over 3.2 million orders were executed, out of more than 7 million orders processed; the net profit amounted to 70,781; total brokerage increased by 18% on 2002 to 30,682 million, net of volumes negotiated on IDEM, EUREX and US markets.
Market trends continue to be weak and revenues fell for the entire online trading sector. For Directa it was a significant year of consolidation during which, while advertising costs were reduced to maintain the economic balance, technological investments were stepped up to boost the service, which was significantly improved ("tick by tick" push, Visual Trader supplemented by flashTrading, multiBook, flashBoard). Brokerage reached 26,050 million (+14% compared to 2001), without counting the volumes for Fib and miniFib, instruments that were only introduced into Directa operations from October 16; 3,214,266 orders were executed, out of 6,592,379 orders processed (+26% on 2001 and +8% compared to the previous record of 2000), with an average of over 300,000 executed per month in the last quarter. The net profit was 31,116 (compared to 25,383 in 2001), and trading clients numbered 10,300 on December 31 (10,131 in 2001).
The results were affected by the general contraction in volumes traded on the market, but Directa clients maintained a good level of activity. Brokerage reached Lire 44,081 billion, 2,541,464 orders were executed (5,436,169 received), the net profit amounted to Lire 49 million, and trading clients totalled 10,131 on December 31, 2001.
The expansion continued: brokerage exceeded Lire 50,700 billion, with 6,189,000 orders received and 2,955,358 executed (compared to 639,008 in 1999), the net profit was Lire 8,191 million, and trading clients numbered 9,903 on December 31, 2000.
This was the boom year for online trading in Italy. In a very competitive market, Directa demonstrated the robustness of its products: the number of trading clients increased to 4,350 and brokerage to Lire 7,199 billion.
In spite of the conspicuous increase in investments and advertising expenditure and the consistent fall in commissions, the net profit amounted to Lire 1,945 million.
Thanks to the lively stock market at the beginning of the year, the volumes traded, the number of clients and the capital administered all reached consistent levels. Directa brokered 0.2% of the daily trading at Piazza Affari and by year-end had executed trading orders on Milans electronic market for over Lire 1000 billion. The financial statement results confirmed the companys new-won solidity, with a net profit of Lire 961 million.
Revenues increased gradually through the year and in spite of the considerable growth in advertising and technical expenditure necessary to boost the computer system, the year closed with a small profit of Lire 18 million. At year-end the company had executed trading orders on Milans electronic market for approximately Lire 100 billion (approximately 52 million).
The first modest revenues started to mount up, and costs also increased as trading and the advertising campaigns got underway. The books therefore recorded a loss of Lire 191 million, covered, together with the previous loss, by an endowment of Lire 250 million from stockholders.
At the end of its first year of existence, Directa closed the books with a loss of Lire 56 million: the cost of setting up the service continued to rise and no revenues were yet received from operations.