- FY2019 Net profit vs. 2018 Net Loss
- Q1 Preliminary Results
- Working Capital Increase
Swiss Forex broker Dukascopy Bank had an impressive 2019 bouncing back to profitability after a net loss reported in 2018. A reduction in operating expenses backed by slight improvement in the revenues base catapulted the group to a net profit in 2019.
FY2019 Financial Results
Net profit in FY2019 rose to $2.27 million compared to a net loss of $1.07 million reported the previous year. A bounce back to profitability can be attributed to a 600k increase in operating revenues that came in at CHF 28 million.
Dukascopy also benefited from an 11% decline in operating expenses that came in at CHF 24.4 million compared to CHF 27.6 million reported the previous year.
The company’s Japanese subsidiary closed 2019 with a net loss of CHF 53K much smaller compared to a big loss in 2018. The improvement came at the backdrop of a 23.6% reduction in operating expenses. Improvements were also registered in Europe whereby a 33.9% reduction in operating expenses led to a much smaller loss of CHF 53K.
Amidst the improvements on the financial front, Dukascopy is struggling with a decrease in Forex and CFD trading volume. Trading profitability could have been much higher in the first quarter had the company not suffered a 23.8% decline in trading volume. However the FX broker benefited from a 34.8% increase in income per million traded.
Q1 Preliminary Results
First quarter preliminary results also indicate that the FX broker registered booming business in the first quarter. The broker registered intense trading activity in the quarter thanks to coronavirus spurred volatility. Net profit in the quarter is expected to clock highs of CHF 9.5 million. Proceeds from trading operations also clocked highs of 16.6 million in the quarter.
Dukascopy Bank has since increased its eligible working capital by CHF 9.48 million to CHF 46.09 million thanks to a net profit in the first quarter. Impressive financial results in recent quarters stems from a robust business supported by diversified range of products.
The FX broker has in the recent past expanded its footprint into offering retail mobile banking services as well as instant payments and into the cryptocurrencies business.