TechFinancials Inc (LON: TECH), the Binary options platform and broker turned blockchain company has announced its H1-2018 financial results. The company recorded lower revenue compared to H1-2017 as it scaled down its operations.
During the period, the company’s revenue reported a decline of 46 per cent to $3.78 million. The company has winded its OptionFair binary options brokerage brand and other binary trading operations except for DragonFinancials joint venture. It also gave up its CySEC license.
The major part of the revenue is derived from its DragonFinancials binary options JV in the Far East, but the company maintained that the huge decline in the profitability is due to the tightening of regulations. Its new venture in the blockchain segment earned them a revenue of $1.3 million, with $1.23 million of that from development services provided to Cedex.com. Cedex.com is developing a blockchain based online diamond exchange and is effectively controlled by TechFinancials. It owns 2 per cent in Codex with an option to increase its stake to 90 per cent.
The company booked an accounting gain of $9.49 million in the first half of 2018 deriving from Codex, which helped the company to post Net Profits of $8.49 million compared to operating loss of $853,000.
Asaf Lahav, Group Chief Executive Officer of TechFinancials, commented:
“The first half of the year has been a period of transformation for TechFinancials. With a new focus on blockchain related technologies, the Company has continued to see an increase in the new revenue stream and has maintained profitability in the blockchain segment throughout the Company’s significant shift in strategy.”
“Importantly, the Company’s balance sheet remains strong at a time when it seeks opportunities to invest in technological innovation related to blockchain, with its technical support for the successful completion of the CEDEX ICO marking an important milestone for the Company. TechFinancials continues to deepen its experience in blockchain-related projects, whilst providing the infrastructure and some of the key software components to the CEDEX exchange. The Company will be using this knowledge and infrastructure in new products that it intends to introduce to the market in 2019.”
“The Board is encouraged with the progress made over the past six months as the Group builds on its offering, and this gives us confidence for future prospects.”