Phoenix Group UAE reported a jump in net income of 50% despite visibly lower revenues.
Crypto assets growth and a one-time contract boosted company's earnings.
In early
December, the first cryptocurrency company made its debut on the Abu Dhabi
stock market, receiving a warm welcome from investors. Two months later, Phoenix
Group UAE, specializing in the mining of cryptocurrency assets, published its
2023 report. Despite a significant drop in revenue, it achieved an
increase in net profit.
Phoenix Announces 2023
Results: Revenues Down, Profits Up
The
unaudited preliminary results released this week show that the digital asset
miner significantly increased the value of its assets compared to 2022, growing
from $230 million to $834 million.
Although
revenues for 2023 were almost three times lower than in 2022, dropping to
$288 million, the company improved its operating profit, which grew 50% to
$208 million. The net profit for the reported period was nearly $221 million, with
earnings per share modestly increasing from $0.03 reported in 2022 to $0.04.
But, where
did such a significant jump in profit come from, with a very strong limitation
of revenues? We looked for information on this in the company itself. Its
representatives stated this was due to a "one-time contract," which distorted the company's expected cash flows.
"We
saw significant organic growth of 20% beyond that outlier, demonstrating the
strength of our core business," the company commented in an e-mailed
statement to Finance Magnates. "This is further reflected in our
impressive year-on-year growth in key areas such as self-mining which saw an
increase of 480%."
The company
also mentions an increase of 119% in hosting service revenues in the report. This
was made possible by establishing cooperation with "high-net-worth individuals,"
creators of mining equipment and power supply companies.
"Our
success has been impressive, but 2024 promises to be truly
transformative," said Seyed Mohammad Alizadehfard (Bijan), the Co-Founder
and CEO of Phoenix. "With ambitious plans and an unwavering commitment to
excellence, the group is poised to redefine success, not just in the UAE, but
on a global scale."
Earlier
this year, the company announced that it had entered into an agreement
with Bitmain, a manufacturer of cryptocurrency miners, to purchase machines for
mining cryptocurrencies. The deal was valued at $187 million.
Shareholders Show Lack of
Optimism
Although
the Phoenix Group UAE IPO was met with a warm reception from shareholders and
the company raised $370 million, it has been on a downward trend since then.
From the highs reached on December 8, shares lost about 20% to Wednesday's
minimums (tested after the publication of the report).
The
company's representatives claim that the decline in valuation may be caused by
"various factors." However, they remain convinced of the
"long-term growth prospects based on strong financials and strategic
partnerships."
The company's IPO came at a time when other publicly listed firms in the digital asset mining sector were starting to transition their machines away from crypto mining and towards providing computing power for the artificial intelligence industry instead. In 2022, total revenues for the cryptocurrency mining industry dropped to $6 billion, a significant drop from the all-time high of $12 billion generated in 2021.
We will
have to wait until March for the full and audited results of the company when
we will learn the exact structure of revenues, costs and the condition of the
enterprise. As Phoenix claims, the report "will further demonstrate the
underlying value" of the company.
In early
December, the first cryptocurrency company made its debut on the Abu Dhabi
stock market, receiving a warm welcome from investors. Two months later, Phoenix
Group UAE, specializing in the mining of cryptocurrency assets, published its
2023 report. Despite a significant drop in revenue, it achieved an
increase in net profit.
Phoenix Announces 2023
Results: Revenues Down, Profits Up
The
unaudited preliminary results released this week show that the digital asset
miner significantly increased the value of its assets compared to 2022, growing
from $230 million to $834 million.
Although
revenues for 2023 were almost three times lower than in 2022, dropping to
$288 million, the company improved its operating profit, which grew 50% to
$208 million. The net profit for the reported period was nearly $221 million, with
earnings per share modestly increasing from $0.03 reported in 2022 to $0.04.
But, where
did such a significant jump in profit come from, with a very strong limitation
of revenues? We looked for information on this in the company itself. Its
representatives stated this was due to a "one-time contract," which distorted the company's expected cash flows.
"We
saw significant organic growth of 20% beyond that outlier, demonstrating the
strength of our core business," the company commented in an e-mailed
statement to Finance Magnates. "This is further reflected in our
impressive year-on-year growth in key areas such as self-mining which saw an
increase of 480%."
The company
also mentions an increase of 119% in hosting service revenues in the report. This
was made possible by establishing cooperation with "high-net-worth individuals,"
creators of mining equipment and power supply companies.
"Our
success has been impressive, but 2024 promises to be truly
transformative," said Seyed Mohammad Alizadehfard (Bijan), the Co-Founder
and CEO of Phoenix. "With ambitious plans and an unwavering commitment to
excellence, the group is poised to redefine success, not just in the UAE, but
on a global scale."
Earlier
this year, the company announced that it had entered into an agreement
with Bitmain, a manufacturer of cryptocurrency miners, to purchase machines for
mining cryptocurrencies. The deal was valued at $187 million.
Shareholders Show Lack of
Optimism
Although
the Phoenix Group UAE IPO was met with a warm reception from shareholders and
the company raised $370 million, it has been on a downward trend since then.
From the highs reached on December 8, shares lost about 20% to Wednesday's
minimums (tested after the publication of the report).
The
company's representatives claim that the decline in valuation may be caused by
"various factors." However, they remain convinced of the
"long-term growth prospects based on strong financials and strategic
partnerships."
The company's IPO came at a time when other publicly listed firms in the digital asset mining sector were starting to transition their machines away from crypto mining and towards providing computing power for the artificial intelligence industry instead. In 2022, total revenues for the cryptocurrency mining industry dropped to $6 billion, a significant drop from the all-time high of $12 billion generated in 2021.
We will
have to wait until March for the full and audited results of the company when
we will learn the exact structure of revenues, costs and the condition of the
enterprise. As Phoenix claims, the report "will further demonstrate the
underlying value" of the company.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
Kraken Announces Partnership to Enhance Crypto Offerings in German Market
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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