EZTD Inc, the parent company of EZTrader, reported its yearly results as part of the mandatory disclosure rules for public companies. In a rare glimpse at the full figures of a binary options brokerage company, the firm reported that its revenues increased, leading to a decline in net losses.
For the full year 2015 the firm which owns the EZTrader brand has reported that the company increased its revenues by 29 per cent to $25.9 million. While the increase in the figure is substantial, the firm didn’t manage to swing to profitability with the net loss for the year amounting to $6.2 million, which is $2.7 million less than last year.
Looking at the earnings before interest, taxes, depreciation and amortization (EBITDA), EZTD Inc. reported that the figure amounted to a gain of $17,000 when compared to a $1.6 million loss for 2014.
Trading Volumes and New Clients Growing
The annual volume of transactions through the brokerage has increased to 2,076,000 which is more than double last year’s 952,000. Despite this figure, the annual volume transacted through the platform in U.S. dollar terms has increased by 18 per cent to $97 million.
Forex Trading Disruptor Sees Growth Thanks to Offshore Regulated StatusGo to article >>
EZTrader’s parent company reported that the brokerage has registered 57,400 new clients throughout the years, which is almost double the amount of new clients in 2014.
Commenting on the results, the CEO of the company Shimon Citron said: “We accomplished our results through strong business intelligence, entering new international markets, and strengthening our technology and mobile platforms.”
“Our cutting-edge business intelligence has enabled us to seize new business opportunities in a cost-effective manner and optimize the conversion of site visitors into customers through proactive engagement with consumers using real-time analytics. Its unique retention methodology provides automated real-time response to our clients’ trading needs, so they always receive strong customer support,” he added.
Looking Ahead into 2016
Despite the growth which the company registered throughout the year amid sponsorship deals with French AS Monaco and English Tottenham Hotspur football clubs, the company has also faced tough regulatory challenges from the Cyprus Securities and Exchange Commission (CySEC), which imposed a €340,000 administrative fine on the operator of EZTrader which is holding the regulatory license, WGM Services.
With the company pledging compliance with the regulatory remarks by CySEC and acquiring a license to operate in Japan, 2016 could be yet another year of revenue growth, however its expenses which are most likely related to the lucrative football sponsorship deals with Monaco and Tottenham would have to be optimized for a turn to profitability.