Compagnie Financière Tradition (SWX: CFT), an inter-dealer broker and operator of a Japanese retail forex trading platform, strengthened its revenue for the first three months of 2024 on a constant currency basis but witnessed a decline when considered on a current exchange rate.

Another Quarter Ends

According to the official figures released today (Thursday), the reported IFRS revenue for the group company between January and March was CHF 265.6 million, compared to CHF 271.6 million in the corresponding period of the previous year. When the share from the joint venture was included, the quarterly revenue of the group rose to CHF 283.8 million, compared to CHF 290.5 million a year earlier.

The IFRS and consolidated revenue both improved by 4.6 percent on a constant exchange rate. However, when considering current exchange rates, they fell by 2.2 percent and 2.3 percent, respectively.

Further, it highlighted that the revenue increased by 9 percent at constant exchange rates at the end of April compared to the same period in 2023.

The Impact of FX Risks

“Consolidated revenue for the quarter was affected by the number of working days compared to the first quarter of 2023, particularly due to the Easter holiday, with a carryover to April along with a strong upturn in activity,” Compagnie stated.

“Consolidated revenue continued to be affected by a currency effect compared to the first quarter of 2023 due to the strengthening of the Swiss franc, notably against the Japanese yen.”

Compagnie Financière Tradition is headquartered and listed in Switzerland and operates an interdealer broking venue. It also manages Gaitame, one of Japan's leading retail forex brokers.

Compagnie generated CHF 276.8 million in the first three months of 2024 from the interdealer broking business. Although on a variable exchange rate, it was a drop of 2 percent, the figure improved by 4.7 percent on a constant exchange rate.

From its offerings to retail investors in Japan through the Gaitame platform, which is considered a non-interdealer brokering business, the group company generated CHF 7 million, down from CHF 8.2 million in the previous year.

As Finance Magnates reported earlier, Compagnie ended 2023 with a pre-tax profit of CHF 127.2 million, a jump of 16.1 percent, generated on its annual IFRS revenue of CHF 982.4 million. Its net profit was CHF 94.4 million, 15.9 percent higher.

In another recent move, the Swiss group hired Michel Everaert, an industry veteran with three decades of experience, as its Global Head of E-Commerce and Digitalization.