21st Aug 2015 07:03
LONDON (Alliance News) - TechFinancials Inc Friday said that it will not meet market expectations for profit and revenue in 2015 after its binary options business OptionFair didn't meet the expected rate of consumer conversion in the first half of the year.
The software developer said that revenue in the six months ended June 30 rose slightly to USD7.3 million from USD7.2 million in the first half of 2014, adding that operating performance improved marginally on the comparable period. However, while Ebitda was positive, it was hit by an "increase in necessary research and development expenditure", the company said.
TechFinancials added that decisions made by senior management at its B2C OptionFair business at the end of the first quarter, as well as compliance with the new CySEC regulations contributed to a lower-than-expected rate of consumer conversion at OptionFair, primarily in the second quarter.
It said that while the company has instigated changes to its management and operations in Cyprus to restore and improve its rate of customer conversion, it does not believe that the changes will take effect in time to enable OptionFair to achieve its anticipated level of business, and consequently the company will not meet profit and revenue market expectations for the full year.
TechFinancials does, however, expect the business to return to a higher level of customer conversion and improved profitability in the next financial year.
"Whilst the performance of OptionFair is disappointing, the group remains positive about the long-term prospects for the B2C segment, as the new management structure takes shape. The company's core B2B online trading software continues to perform well, and the group is continually looking at opportunities in new domestic and overseas markets with high growth potential," Chief Executive Asaf Lahav said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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