iFast Corporation Ltd’s Latest Earnings Report: Revenue and Profit Stalls

iFast Corporation Ltd (SGX: AIY) reported in its third quarter earnings report this morning. The reporting period was for 1 July 2015 to 30 September 2015.

iFast Corporation is an internet-based investment product distribution platform which got listed a couple of months ago. Folks in Singapore may be familiar with its consumer facing product – The business of iFast Corporation can be divided into two buckets: the B2C (business-to-consumer) division and the B2B (business-to-business) division.

You can learn more about the IPO (initial public offering) here or catch up with the previous earnings report here.

Financial highlights

Here’s a rundown on the latest financial figures for iFast Corporation:

  1. For the third quarter of 2015, iFast Corporation’s revenue fell by 6.9% year on year, coming in at $20.5 million.
  2. On a net revenue basis (net of commissions and fees) – iFast Corporation reported $10.14 million for the third quarter of 2015, a slight 1.9% increase from the same quarter in 2014. From this amount, $8.45 million was recurring in nature.
  3. Profit for the period declined by 0.5% year on year to end at $2.9 million.
  4. Earnings per share (EPS) also declined, falling from 1.42 cents per share in the third quarter last year to 1.10 cents per share in the latest quarter.
  5. Cash flow from operations fared a little better, recording $3.8 million for the reporting quarter. Capital expenditure was $365,000 for the same period. The lower capital expenditure gave iFast Corporation positive free cash flow of $3.4 million for the third quarter of 2015.  
  6. As of 30 September 2015, assets under administration (AUA) was S$5.4 billion.
  7. The company also reported $23.8 million in cash and equivalents and no debt, as of 30 September 2015.  

The growth train appears to have stalled for iFast Corporation after its strong start after its IPO. The investment product platform provider maintains a strong balance sheet and recorded positive free cash flow for the quarter. The financial strength provides the company options for its future.

For 2015’s third quarter, the board of directors proposed an interim dividend of 0.68 cents per share.

Operational Highlights

At the end of the third quarter, the B2C business segment recorded an AUA of S$1.36 billion. Meanwhile, the B2B side clocked in AUA of S$4.06 billion. AUA from the B2B and B2C segments grew 3.1% and 6.3% year on year respectively.

At the country level, Singapore’s net revenue grew by 8.6% year on year to $7.36 million. Elsewhere, Hong Kong and Malaysia recorded net revenue of $2.3 million and $0.5 million respectively.

In other news, its wholly owned China subsidiary, iFast Platform Services (ShenZhen) Qianhai Limited received a Funds Distributor Qualification. The qualification enables iFast Corporation to distribute investment funds in China. The company plans to launch its first product in the first quarter of 2016.

Foolish summary

At its opening price $1.46 on Wednesday (28th Oct 2015), iFast Corporation traded at around 37 times trailing earnings.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.