15th Aug 2019 11:00
(Alliance News) - TechFinancials Inc said Thursday it sank to an interim loss at the start of 2019 after a significant fall in one-off gains, whilst the firm continued to focus on its Footies Ltd subsidiary.
For the six months ended June, the financial software firm sank to a USD1.1 million pretax loss from a USD8.5 million profit the year prior. This was amid revenue falling to USD2.1 million from USD3.8 million the year before.
Profit performance was primarily hurt, however, by financial income from fair value assets which provided a USD9.5 million boost to profit the year prior, but nothing in the most recent period. This was attributable to the options to buy up to a 90% stake in blockchain diamond exchange CEDEX.
"The first half of the year continued to be a very exiting period of transformation for the company," TechFinancials Chief Executive Officer Asaf Lahav said. "Focus has been placed on our subsidiary Footies, a disruptive blockchain based ticketing venture for sports clubs and teams."
TechFinancials owns a 75% stake in Footies.
"The company has continued to support Footies and has committed to further finance the venture by providing an additional minimum of USD225,000," Lahav added. "This will bring the total to date to USD725,000, with the funds to be used for product and business development."
"The company continues to deepen its experience in blockchain-related projects through developing and providing some of the software components to Footies and through continuing to develop and maintain technology provided for CEDEX (the blockchain based diamond exchange)," Lahav said. "The company will continue to leverage this knowledge and infrastructure while seeking new opportunities in the blockchain industry."
TechFinancials does not pay a dividend.
"The board is encouraged with the progress made over the past six months on the Footies venture and believes that the product, once fully commercialised will play a pivotal role in shaping the future of the sports ticketing market", Lahav continued.
Shares in TechFinancials were 1.2% lower at 4.00 pence in London on Thursday.
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