Swiss on-line banking and brokerage chief Swissquote Group Holding SA (SWX:SQN) has introduced that it’s going to report better-than-expected outcomes for the second half of 2017 (when closing outcomes are launched in early March).
The motive force – cryptocurrency buying and selling.
Swissquote was the primary European on-line financial institution to introduce Bitcoin CFDs in mid 2017 in addition to buying and selling in different digital currencies. The results of that initiative was apparently not only a surge in crypto volumes, but in addition a big rise usually new account openings, bringing a brand new era of shoppers into the fold, and an increase in ‘conventional’ foreign money pair buying and selling as properly.
Total, following what we reported was a really strong first half 2017 for Swissquote, the corporate expects to greater than double that consequence for the total yr with 2017 earnings now anticipated to quantity to CHF 186 million (USD $190 million), roughly CHF eight million above the earlier forecast. Pre-tax revenue ought to are available at about CHF 45 million.
Swissquote shares have been on one thing of a run since mid December, presumably in anticipation of fine outcomes for 2017. After buying and selling in a reasonably tight band round CHF 34-36 for many of August by December, Swissquote shares have risen steadily by greater than 20% over the previous 4 weeks and sit at CHF 42.60 at the moment. Will probably be attention-grabbing to see how the shares react when buying and selling resumes this morning.
Swissquote shares, previous yr. Supply: Google Finance.
The complete textual content of the Swissquote announcement follows:
Gland/Zurich, 12 January 2018
Swissquote revises revenue and revenue development upwards
In its interim monetary report, Swissquote said that it anticipated to double its extraordinarily robust first-half outcomes for the total yr. This estimate has now been revised upwards, with complete earnings now anticipated to quantity to CHF 186 million, roughly CHF eight million above the earlier forecast. Pre-tax revenue totals round CHF 45 million.
There are two causes for this sharp rise in earnings development: firstly, considerably improved leads to the normal enterprise (Buying and selling, eForex); and secondly, cryptocurrency buying and selling, after Swissquote turned the primary European on-line financial institution to launch such an providing in early July. Sturdy curiosity in cryptocurrency buying and selling led to a flood of recent account openings. A number of thousand account opening purposes are at the moment being submitted each week, every of which Swissquote, as a licensed financial institution, should overview in accordance with banking requirements. This takes time and is inflicting some delays in opening accounts. Swissquote is working extraordinarily onerous to clear the backlog.
The complete report for the 2017 monetary yr shall be revealed on 2 March 2018.