Zurich-based investment firm ayondo, which operates a regulated online social trading platform, has reported its financials for the third quarter ending September 30, 2018. The listed company managed to mitigate its losses for the reported period, though it revealed much lower revenues compared to the prior year.
In terms of its operations, ayondo lowered its operating losses to a figure of CHF 1.72 million ($1.28 million) for the Q3 2018. This reflected an advance, albeit in red, by 16 percent year-over-year from a loss of CHF 2.04 million ($2.6 million) for the third quarter of 2017.
However, it should be noted that nearly 40 percent of the last year’s loss was attributed to additional resources spent around the IPO process and other internal structurings, which weighed down the broker’s profits in 2017. Excluding this one-off effect, the broker should have reported a loss of only CHF 1.2 million for Q3 2017.
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Over this period, ayondo saw its trading revenue drop to CHF 3.99 million ($5.15 million) for the June-September period, down from CHF 5.17 million a year ago, or 23 percent lower year-over-year.
The primary culprit for lower revenues was attributed to a change in the mix of clients’ types with a higher stake for the B2B category, who typically have lower average revenues compared to other business segments. This deterioration also could be explained, in part, by the fall in the number of active clients, which ticked down one percent from 25,377 in the third quarter of 2017 to 25,237 in Q3 2018.
In addition, ayondo said the decrease in revenue came on the heels of a subsided volatility and regulatory changes in the third quarter, which led to temporary uncertainties and lower levels of activity.
Further, ayondo saw a big slump by 23 percent in average revenue per client which was reported at CHF 158 relative to CHF 204 in 2017.