Gaitame Parent Posts 2020 Revenue Decline as JPY Gets Stronger

Compagnie Financiere Tradition (CFT), an inter-dealer broker and owner of Japanese retail foreign exchange and CFDs brokerage, Gaitame, has announced that its consolidated revenue for the fourth quarter of 2020 increased by a marginal 0.6 percent year-over-year on a constant exchange rate basis.

However, at a current exchange rate, the quarterly revenue came in at CHF 204.6 million, while in the similar quarter a year before, the figure was at CHF 219 million.

On an adjusted basis, the revenue stood at CHF 220.9 million, compared to CHF 238.1 million in the corresponding quarter in 2019. But, at a constant exchange rate, it was down by only 0.2 percent.

The company pointed out that though there was an increase in the activities in November and December, the US elections did not generate the expected volatility.

Last quarter’s declining numbers continued the trend of the previous quarter when the revenue slumped 14.4 percent, on a constant exchange rate, at CHF 185.7 million. This also points out that the Swiss company’s business became stronger quarter-on-quarter.

Stronger JPY Held Back 2020 Revenue

Overall, CFT’s consolidated revenue for 2020 went down by 2.3 percent year-on-year to CHF 903.1 million, but on a constant exchange rate, it gained 2.4 percent on an adjusted basis.

In absolute terms, the consolidated adjusted revenue for the entire year remained at CHF 981.3 million, while for 2019, this figure was at CHF 1,012.5 million.

The company detailed that its interdealer broking business for overall 2020 went up by 2.6 percent at a constant exchange rate while the Japanese retail Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term trading business declined by 3 percent. The strengthening Japanese yen against the Swiss franc was the major reason behind CFT’s declining revenue.

While the income of the parent company remained bearish, the trading volume on Gaitame soared in 2020. Finance Magnates earlier reported that the forex broker saw a 100 percent year-on-year jump in its trading volume last month.