Software developer TechFinancials has expanded on an initial trading update last month by revealing mixed financial results during the six months through to June 30.
As reported by iGaming Business, TechFinancials initially stated that revenue for the first half amounted to $7.3 million (€6.4 million), a figure that is unchanged in the updated unaudited interim report and represents a slight increase on the $7.2 million posted in the same period last year.
Core software licensing revenue was up 33% year-on-year to $3 million, while gross margin increased by 9% to 71%.
Gross profit jumped 16% year-on-year to $5.2 million, although operating profit plummeted by 86% to $100,000 due to a greater proportion of research and development (R&D) expenditure through the profit and loss account and an increase in non-cash expenses.
Elsewhere, earnings before interest, tax, depreciation and amortisation fell by 31% to $550,000 due to a larger amount of R&D being expensed compared to the corresponding period last year.
Asaf Lahav, group chief executive of TechFinancials, said: “Notwithstanding a decrease in profit, the group’s operational performance has been positive and the board remains confident about the group’s future prospects.
“We have a strong cash position as a result of our AIM listing in March 2015, and it will be utilised to further invest in marketing and R&D as well as evaluating potential joint venture and acquisition opportunities to help facilitate future growth.”
source : www.igamingbusiness.com
