(Saxo), , released its for 2017 this Monday. The firm saw an increase in net revenue but a decrease in post-tax profit resulting from high expenses.
To some degree, the results are surprising. The report indicates that in August of 2017, Saxo acquired 7,300 clients, as well as their cash and assets, from Barclays Stockbrokers.
That deal saw Saxo doubling its client base. As such, one would expect that Saxo’s 2018 financial report will look very different from last year’s.
Saxo Capital Markets – Increased Revenue…
In 2016, Saxo of £18.34 million ($24.11 million). Last year, that figure increased by 23.1 percent to £22.58 million.
With additional revenue from other income sources of £6.68 million ($8.78 million), Saxo was able to finish 2017 with net operating income of £29.30 million ($38.52 million).
That was a 14.5 percent increase on 2016 when the firm reported net operating income of £25.59 million ($33.64 million).
Unfortunately for Saxo, administrative expenses also shot up to £20.85 million ($27.41 million) in 2017. The year before this they were 16.1 percent lower, totaling £17.49 million ($23.00 million).
…But Slumping Profits for the Year
Finance expenses were also up in 2017, totalling £200,187 ($263,198) versus finance income of £134,538 ($176,885). For 2016, the figures were £132,207 ($173,820) in expenses versus £419,504 ($551,941) of income.
All of this meant that Saxo finished 2017 with £7.94 million ($10.44 million) in pre-tax profit. That was a year-on-year decrease of 14.3 percent as the firm finished 2016 with £9.26 million ($12.17 million) in pre-tax profit.
After tax, Saxo finished 2017 with £6.36 million ($8.36 million) in profit. This was a 14.7 percent decrease on 2016 when the firm finished the year with £7.37 million ($9.69 million) in profit.
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