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SelfWealth (ASX:SWF) posts 178pc revenue increase in March quarter

Finance
ASX:SWF      MCAP $30.46M
12 April 2021 11:50 (AEST)
SelfWealth (ASX:SWF) - Managing Director, Rob Edgley

Source: SelfWealth

SelfWealth (SWF) has reported a 178 per cent year-on-year increase in operating revenue to $5.78 million for the March 2021 quarter.

The online broker’s number of active traders also grew to 85,944 which marks a 166 per cent increase on the March 2020 quarter.

SelfWealth attributes the rise of active traders to the introduction of U.S. trading in mid-December which makes the last three months the first full quarter of U.S. trading on the SelfWealth platform.

By the end of the period, over 25 per cent of total active traders added the U.S. functionality to their existing ASX portfolios which is a much higher uptake than the company expected.

A key development over the quarter was the launch of a new iPhone app so clients can easily trade on both domestic and U.S. markets. After only launching last month, the app has a 4.6 rating on the app store — making it one of the highest rated Australian trading apps.

Additionally, the March quarter saw a record of 514,246 trades which is a 36 per cent rise on the December 2020 quarter and a 220 per cent growth year on year.

“SelfWealth continues to benefit from the key structural changes in investment markets, driven by ultra-low interest rates globally and the digitalisation of investment markets, which were accelerated by the COVID-19 pandemic,” Managing Director Rob Edgley said.

SelfWealth allocated about $1.4 million on staff and admin costs and a further $3.7 million on product and manufacturing, and marketing costs. In the end, the company reported $558,000 in operating cashflow.

Further, SelfWealth ended the period with roughly $7.4 million in cash — a slight increase on the $7.2 million it started with.

Company shares are up 1.72 per cent and are trading at 59 cents at 10:42 am AEST.

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