SelfWealth (ASX:SWF) - CEO & Executive Director, Cath Whitaker
CEO & Executive Director, Cath Whitaker
Source: Cath Whitaker/LinkedIn
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  • Investment trading platform, SelfWealth (SWF) has witnessed a decline in revenue as the number of active traders on its platform rises
  • According to the company’s December quarterly report, operational revenue declined to $5.07 million, down from $5.5 million in the previous quarter
  • Operating revenue reportedly decreased during the period due to a customer acquisition promotion in which free brokerage fees were offered when buying ETFs
  • SelfWealth said its active traders were up by 10,213 to 117,674, representing a 9.5 per cent increase to the previous quarter
  • Shares were trading 10.3 per cent down today at 26 each

Investment trading platform, SelfWealth (SWF) has witnessed a decline in revenue as the number of active traders on its platform rises.

According to the company’s December quarterly report, operational revenue declined to $5.07 million, down from $5.5 million in the previous quarter but up 14 per cent year-on-year.

The decrease is reportedly due to a customer acquisition promotion in which customers were offered free brokerage when buying Exchange Traded Funds (ETFs).

SelfWealth said its active traders were up by 10,213 to 117,674, representing a 9.5 per cent increase to the previous quarter.

SWF said it has started diversifying revenue streams across different exchanges. During the quarter, total receipts from US trading represented over 10 per cent of revenue, with 34 per cent of active traders having added US trading to their portfolios by the end of last year.

The company reported a three per cent quarter-on-quarter decrease in the number of trades executed during the period, which represents an 11 per cent increase when compared to the previous year. The company said the second quarter is a seasonally slower trading period due to the holiday season disrupting retail trading activities.

Client cash on the platform reportedly increased by eight per cent compared to the previous quarter to $646 million. This represents a 49 per cent increase when compared to the previous year.

SelfWealth is also seeking to break into the cryptocurrency market, having executed a Heads of Agreement with a cryptocurrency exchange, BTC Markets to provide access to select cryptocurrency assets via the SelfWorth platform.

A competitive percentage fee will be applied to cryptocurrency trading volumes undertaken on the SelfWealth platform.

The design and development of cryptocurrency on the SelfWealth platform is reportedly underway. The company said the launch will be subject to satisfying the compliance requirements of all relevant authorities and the successful completion of development and testing.

The company reported quarterly cash outflow from operating activities was $2.4 million, up from the $1.1 million recorded in the previous quarter. The increase was reportedly driven by rising staffing costs which aligns with the company’s strategy to attract key talent and establish offshore teams.

According to SelfWealth, cash and cash equivalents at the end of the quarter were $14.9 million with no outstanding debt. It estimates this will last 6.1 quarters.

SelfWealth Managing Director and CEO, Cath Whitaker said the company is committed to “building a sustainable wealth creation platform with diversified revenues.”

Shares were trading 10.3 per cent down today at 26 each at 1.04 pm AEDT.

SWF by the numbers
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