First Derivatives registers 17% rise in FinTech revenues in FY19

Maria Nikolova

FinTech revenue increased by 17% to £166.7 million in the year to end-February 2019, on the back of expansion of services provided to clients and new contract wins.

First Derivatives plc (LON:FDP) today announces its audited results for the year to end-February 2019. 

Across all segments, revenue rose 17%, with software license revenue growing by 28% from the previous year.

FinTech revenue increased 17% to £166.7 million (2018: £142.9m), on the back of expansion of services provided to clients and new contract wins including the Canadian Securities Administrators, BitMEX and a major Japanese bank. FinTech software continued to deliver strong growth, with revenue up by 17% to £80.2 million.

MarTech revenue was up 8% to £41.4 million (2018: £38.2m), supported by 25% growth in subscriptions for First Derivatives’ Marketing Cloud platform, powered by Kx.

Revenue from other markets increased by 85% to £9.3 million (2018: £5.m). According to the company, this is evidencing the initial success of its strategy to penetrate high-value markets such as Industrial Internet of Things, automotive and precision manufacturing.

Reported profit before tax increased by 38% to £16.7 million (2018: £12.1m). Adjusted profit before tax increased by 12% to £27.5m (2018: £24.5m).

Reported profit after tax increased by 29% to £13.2 million (2018: £10.2m) and reported basic earnings per share increased by 26% to 50.9p per share (2018: 40.4p).

In terms of important events during the reporting period, First Derivatives highlights the agreement to acquire the minority shareholdings in Kx Systems, taking 100% ownership by 29 June 2019, funded by new financing facilities on improved terms.

Regarding most recent developments, the company says that the new financial year has started strongly with good momentum across the business. The investment program in recent years has delivered a number of important new contract wins and OEM and partnership agreements during the year that provide a platform for growth in the years to come. 

Read this next

Retail FX

FF Simple and Smart Trades says Goodbye to CySEC authorization

The Cyprus Securities and Exchange Commission (CySEC) confirmed that it has wholly withdrawn the Cyprus Investment Firm (CIF) licenses of FF Simple and Smart Trades Investment Services Ltd.

Crypto Insider

Shining the Light in Crypto’s Dark Places

Something changed in regulators’ minds after the November crash of the FTX crypto exchange.

Executive Moves

Financial Commission Adds Sam Low to Dispute Resolution Committee

The Financial Commission (FinaCom PLC), a dispute resolution service that caters to the financial services industry, has appointed Sam Low as the newest member of its Dispute Resolution Committee (DRC).

Digital Assets, Uncategorized

De-facto owner of Bithumb exchange arrested in South Korea

South Korean prosecutors have arrested Kang Jong-Hyun, the anonymous chairman and owner of the country’s largest cryptocurrency exchange, Bithumb, on charges of embezzlement and stock manipulation.

Retail FX

Interactive Brokers volumes snap three-month losing streak

Electronic brokerage firm Interactive Brokers LLC (NASDAQ:IBKR) said its trading volumes rose in January, an indication that investor confidence in the financial markets is rebounding after having been fairly mixed over the past few months.

Digital Assets

VVF invests $5 million in Everscale, a potential Layer 2 solution for Venom blockchain

“For us, this is a strategic investment aimed at the technological development of projects and teams around technologies that we focus on and actively develop. In particular, we are talking about the Venom blockchain project and its ecosystem, which is planned to be launched soon and for which Everscale is a potential Layer 2 solution.”

Institutional FX

FXSpotStream volume ends string of declines on January rebound

Trading volumes on institutional FX platforms surged in January as traders increased their bets on central bankers’ policy with evidence mounting that inflation and economic growth are both losing momentum.

Industry News

DeFi firm Aurox launches SEC-compliant crowdfunding campaign on tZERO

“This is a great opportunity for us to raise capital from our community and the broader public on a leading fully regulated platform. We are confident that the tZERO Markets platform will provide us with the exposure and reach we need to attract a diverse investors to support our business growth.”

Industry News

Morgan Stanley launches ETF platform with six ESG-focused products by Calvert

“These new ETFs will resonate strongly with investors who seek competitive investment results while promoting positive change and supporting companies that are leaders in improving long-term shareholder value and societal outcomes.”

<