Dukascopy Revenues Flat Despite Uptick in Volatility in H1

Swiss brokerage Dukascopy has reported on the outcome of the company’s first half of 2018. The firm’s revenues totalled CHF14 million ($14.5 million). The figure is flat when as the company’s performance did not get a significant boost from a spike in volatility.
Industry peers have been reporting a massive spike in revenues in H1. While some have been driven by the collapse in cryptocurrencies and brokers being able to b-book revenues on the other side of the trade, others have enjoyed the period of turbulence in equity markets in February.

Without a material increase in FX volatility on a sustained basis, the collapse in global stock markets did not affect the revenue flows at Dukascopy. Whether or not that is related to the trading preferences of the Swiss bank’s clients remains to be seen as the firm has only published a preliminary report.
A Small Loss
The operating costs for Dukascopy in the first half of the year totalled to about CHF14 million ($14.5 million). The figure represents a slight decrease when compared to last year’s CHF14.9 million.
The bottom line for the Swiss bank in the first half of this year yields a net loss of CHF187,117 ($193,000) after taxes. The operating result is a loss of CHF41,137. When , the loss booked by the company is significantly lower than the CHF900,000 mark ($929,000).
The company has been heavily investing in the development of its infrastructure in recent years. 
Last year the firm posted a small net profit totalling CHF117,000 ($120,000). Over the years the net profit of the company has been declining amid an increasingly competitive landscape which caused an increase in costs across the industry. Dukascopy has been diversifying by increasing its presence in Japan and in Asia overall. The company’s reputation of a regulated Swiss bank makes the firm’s proposition in the Far East an attractive one for the local market conditions. 
 

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