TechFinancials Reports Sharp Revenues and Profits Rise
- The trading technology provider is reporting an expected increase in full year profits
One of the few publicly listed trading technology providers for retail brokers of binary options, TechFinancials (LON:TECH) reported on the outcome for the full year 2016. The company’s revenues increased by 57 percent to $21.3 million, while operating profits rose to $5 million. For 2015, the firm registered a loss of $0.1 million.
Looking at the company’s key performance indicators, revenues from software licensing increased 22 percent to $20.4 million, while Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term revenues rose 117 percent to $10.9 million.
DragonFinancials Joint Venture
The DragonFinancials brand has been a major driver for TechFinancials which owns a 51 percent stake in the joint venture. For the full year 2016, revenues amount to $9.3 million. Net profits from the operation are reported at $5.6 million.
Last month, the company reported that it received a total of $3 million final divine from its Asia-focused joint venture.
Challenging Times Ahead
Investors shrugged off the firm’s positive financials for 2016, focusing instead ahead towards the ways in which the firm will handle the loss of its largest customer, 24option. Gross margins of the company increased materially last year to 78 percent from 71 percent during 2015.
Commenting on the results, the CFO of TechFinancials, Asaf Lahav said: “The Group enjoyed a good year in which we have seen profitability restored as a result of the decisions we took as a Board to diversify our product offering and focus on high growth markets such as Asia.”
“Going forward we expect 2017 will be challenging due to the loss of our largest customer and the uncertain and tightening regulatory environment particularly in Europe. We anticipate these regulatory changes will have an impact on the B2B performance for the rest of 2017, both on its revenues and on earnings,” Lagav elaborates.
The company’s main focus for the current year will be to mitigate the loss of its largest client and adapting its offering to the increasingly strict regulatory requirements around Europe. TechFinancials is also preparing to diversify its product offering with the introduction of Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term and CFDs trading. The company’s geographical focus is shifting to the vast Asian market.
“We do feel that ultimately the regulatory changes will strengthen the industry and that there will be clarity by the end of 2017, and once that occurs, with a strong balance sheet, we will be well positioned to serve the market from 2018 onwards,” Lahav concludes.
One of the few publicly listed trading technology providers for retail brokers of binary options, TechFinancials (LON:TECH) reported on the outcome for the full year 2016. The company’s revenues increased by 57 percent to $21.3 million, while operating profits rose to $5 million. For 2015, the firm registered a loss of $0.1 million.
Looking at the company’s key performance indicators, revenues from software licensing increased 22 percent to $20.4 million, while Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term revenues rose 117 percent to $10.9 million.
DragonFinancials Joint Venture
The DragonFinancials brand has been a major driver for TechFinancials which owns a 51 percent stake in the joint venture. For the full year 2016, revenues amount to $9.3 million. Net profits from the operation are reported at $5.6 million.
Last month, the company reported that it received a total of $3 million final divine from its Asia-focused joint venture.
Challenging Times Ahead
Investors shrugged off the firm’s positive financials for 2016, focusing instead ahead towards the ways in which the firm will handle the loss of its largest customer, 24option. Gross margins of the company increased materially last year to 78 percent from 71 percent during 2015.
Commenting on the results, the CFO of TechFinancials, Asaf Lahav said: “The Group enjoyed a good year in which we have seen profitability restored as a result of the decisions we took as a Board to diversify our product offering and focus on high growth markets such as Asia.”
“Going forward we expect 2017 will be challenging due to the loss of our largest customer and the uncertain and tightening regulatory environment particularly in Europe. We anticipate these regulatory changes will have an impact on the B2B performance for the rest of 2017, both on its revenues and on earnings,” Lagav elaborates.
The company’s main focus for the current year will be to mitigate the loss of its largest client and adapting its offering to the increasingly strict regulatory requirements around Europe. TechFinancials is also preparing to diversify its product offering with the introduction of Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term and CFDs trading. The company’s geographical focus is shifting to the vast Asian market.
“We do feel that ultimately the regulatory changes will strengthen the industry and that there will be clarity by the end of 2017, and once that occurs, with a strong balance sheet, we will be well positioned to serve the market from 2018 onwards,” Lahav concludes.