Compagnie Financière Tradition : first half 2013
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Compagnie Financière Tradition : first half 2013
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Underlying operating margin up from 7.4% to 9.1%
Net profit Group share up 66.6% to CHF 21.5m
Successful launch of new electronic initiatives
+-------------------------------+-------+-------+------------------------------+
| | | | Variation in constant |
| | | | currencies |
|CHFm |H1 2013|H1 2012| |
| | | | |
| | | | |
+-------------------------------+-------+-------+------------------------------+
|Non-IFRS* Revenue | 510.8| 545.0| -4.4% |
+-------------------------------+-------+-------+------------------------------+
|Non-IFRS underlying operating | 46.7| 40.3| +22.2% |
|profit** | | | |
+-------------------------------+-------+-------+------------------------------+
|Underlying operating margin | 9,1%| 7,4%| |
+-------------------------------+-------+-------+------------------------------+
|Reported revenue | 475.9| 512.4| -5.7% |
+-------------------------------+-------+-------+------------------------------+
|Operating profit | 28.8| 22.3| +35.0% |
+-------------------------------+-------+-------+------------------------------+
|Net profit | 26.6| 17.3| +62.4% |
+-------------------------------+-------+-------+------------------------------+
|Net profit Group share | 21.5| 13.6| +66.6% |
+-------------------------------+-------+-------+------------------------------+
* with proportionate consolidation method for joint ventures in line with the
Group management reports ("Non-IFRS")
** before amortisation of customer relationships and other exceptional costs and
income.
Overview
The first half of 2013 was still characterized by challenging market conditions
particularly as a result of continued uncertainty regarding regulation of OTC
derivative markets which affected a number of Group's customers. After a
transition period in the first quarter, revenue has stabilized in the second
quarter compared to the same period last year which was up 1.4%. For the six-
month period, non-IFRS consolidated revenue was 4.4% lower at constant exchange
rates to CHF 510.8m compared to the same period last year.
Despite a reduction in revenue, the non-IFRS underlying operating profit
increased by 22.2% at constant exchange rates to CHF 46.7m representing an
underlying margin of 9.1% compared to 7.4% for the equivalent period last year.
Net profit Group share increased to CHF 21.5m, up 66.6% at constant exchange
rates. Half-year Group's results fully benefited from the cost reduction
measures implemented last year and aimed at reducing Group's fixed cost base
while increasing its flexibility.
Moreover, the Group pursued its investments in technology in order to increase
its electronic broking capabilities and respond effectively to the changing
regulatory framework.
Trad-X, Tradition's hybrid trading platform for OTC derivatives, initially
launched for trading euro interest rate swaps (IRS EUR), is now operational for
dollar (IRS USD) and sterling (IRS GBP) interest rate swaps as well as interest
rate options (IRO). Since launch, Trad-X has matched close to 20,000 orders
amounting to a notional matched of approximately CHF 1.2tn. Other currencies
will be traded on this platform depending on market trends and changes in
regulation.
In April 2013, the Group launched ParFX, a new wholesale electronic trading
platform for spot forex, which was also developed using its proprietary
technology. This launch, with the support of some of the biggest spot FX market
players in the world, once again demonstrates the Group's ability to innovate
and partner with key market participants to drive development.
It is intended to expand services to additional products in line with the
Group's strategy to provide electronic execution capability across its entire
suite of products.
Revenue
The non-IFRS revenue from interdealer broking business (IDB) was down 5.2% in
constant currencies with a decrease in most asset classes with the exception of
foreign exchange and commodities.
Revenue from commodities (a broad range of energy and metals products) was
slightly higher benefiting from the development of our energy business in Asia-
Pacific which was partly offset by reduced activity levels in Americas.
The decrease in revenue was mostly seen in fixed income and equity products.
Interest rate products while overall down on the same period last year benefited
from the revenue development in our electronic businesses for interest rate
derivatives, Trad-X, now covering dollars and sterling in addition to euros.
The revenue from the forex trading business for retail investors in Japan (Non-
IDB) was up 27.3% continuing from the trend observed in Q4 2012 driven by the
increase volatility on the yen.
Reported revenue for the first half of 2013 was CHF 475.9m compared with CHF
512.4m for the six months ended 30 June 2012, a decline of 5.7% in constant
currencies. This amount excludes Group's share of revenue of joint ventures
which have been consolidated in accordance with the equity method since 1er
January 2013. This essentially concerns the currency options business operated
by Tradition-ICAP, and the forex trading business for retail investors in Japan
operated by Gaitame.com Co., Ltd.
Operating profit
The non-IFRS underlying operating profit (which excludes exceptional costs)
increased by 22.2% in constant currencies to CHF 46.7m, for an underlying
operating margin of 9.1% (H1 2012 : 7.4%).
Exceptional items include an amortisation charge of CHF 2.0m (H1 2012: CHF
2.8m) in respect of the Group's intangible assets as well as net exceptional
costs (consisting mainly of legal costs and reorganisation costs) of CHF 6.4m
(H1 2012: CHF 10.0m). The related intangible asset will be fully amortised in
March 2014.
Reported operating profit for the first half of 2013 was CHF 28.8m compared with
CHF 22.3m for the first six months of 2012, an increase of 35.0% in constant
currencies.
Net profit
Consolidated net profit was CHF 26.6m compared to CHF 17.3m for the equivalent
period last year with a Group share of CHF 21.5m (H1 2012 : CHF 13.5m), up
66.6% at constant exchange rates. The consolidated tax charge for the period
benefited from lower non-deductible expenses following the Group's cost
reduction efforts.
Balance sheet
Consolidated shareholders' equity totalled CHF 358.2m at 30 June 2013 of which
CHF 302.4m was attributable to the Group's shareholders.
Outlook
The Group will pursue its development and investments in technology with the
continuous deployment of new electronic initiatives. Financial markets remain
difficult to predict and against this backdrop, adapting the industry to
technologies in order to respond effectively to the changing regulatory
framework, and keeping a tight rein on costs, will be essential for improving
the Group annual performance.
2013 half year report of Compagnie Financière Tradition SA is now available on
the Company's website at http://tradition.com/financials/reports.aspx
With a presence in 28 countries, Compagnie Financière Tradition SA is one of the
world's leading interdealer brokers (IDB). The Group provides broking services
for a complete range of financial products (money market products, bonds,
interest rate, currency and credit derivatives, equities, equity derivatives,
interest rate futures and index futures) and non-financial products (energy and
environmental products, and precious metals).
Compagnie Financière Tradition (CFT) is listed on the SIX Swiss Exchange. To
find out more about our Group please visit our website at www.tradition.com.
Lausanne, 26 August 2013
Press contacts:
Compagnie Financière Tradition SA
Patrick Combes, President
Tel.: +41 21 343 52 87
Voxia Communication SA
Jérémy Nieckowski
Tel.: +41 22 591 22 65
jeremy.nieckowski(at)voxia.ch
CFT_First Half 2013:
http://hugin.info/133362/R/1724873/575037.pdf
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Source: Compagnie Financière Tradition via Thomson Reuters ONE
[HUG#1724873]
Unternehmensinformation / Kurzprofil:
Datum: 26.08.2013 - 17:53 Uhr
Sprache: Deutsch
News-ID 290966
Anzahl Zeichen: 11138
contact information:
Town:
Lausanne
Kategorie:
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