HIGHER fees, rebates, client bonuses and betting duty tax, coupled with listing costs and higher finance costs eroded results for newly-listed European fintech firm Ayondo for its first quarter.
Its net loss deepened to 6.3 million Swiss francs (S$8.4 million), from a net loss of 2.8 million francs in the previous year, the group said in a Singapore Exchange filing on Wednesday evening.
Fees, rebates, client bonuses and betting duty tax doubled year-on-year to 4.2 million francs for Q1 2018, due to increased rebates as a higher amount of its business was conducted with partners which resulted in a lower profit margin.
In addition, it incurred initial public offering (IPO) costs of about 1.9 million francs for the quarter, as well as a surge in finance costs from 0.55 million francs for Q1 2017 to 2.96 million francs for Q1 2018, mainly due to the conversion of outstanding convertible bonds at the IPO in March 2018. The finance costs comprise mainly of interest payable on the convertible loans issued.
For the three months ended March 31, revenue surged 67.9 per cent to 7.3 million francs from the preceding year, as a result of more active clients – from 22,419 in Q1 2017 to 30,539 in Q1 2018. Average revenue per active client also increased from 194 francs in Q1 2017 to 239 francs in Q1 2018 due to increased trading activity as market volatility increased in Q1 2018. There was also a significant 36 per cent increase in active clients to 30,539 in the quarter.
Loss per share deepened to 0.04 franc, from a loss per share of 0.02 franc in the year-ago period. Net asset value per share rose to 0.07 franc as at March 31, from 0.02 franc three months ago.