DigitalX reports strong balance sheet as revenue soared 305% in second half of 2021
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DigitalX has just released solid half-year financial results, with revenue quadrupling as funds under management rose 73 per cent and a key acquisition started to pay dividends.
DigitalX (ASX:DCC) says it made $1.1 million in revenue in the six months to December 31, 305.5 per cent more than it did during the same period in 2020, with almost half of that coming from its funds under management division.
The company’s two digital asset funds brought in $520,982 during the half year, as funds under management grew to $33.59 million thanks to both rising prices and $3.57 million in inflows.
Overall DigitalX trimmed its loss for the period by 16.5 per cent to $847,362.
The company finished the year with $7.4 million cash at bank, plus another $60.3 million in digital assets, including $39.9 million in Bitcoin.
“Despite volatility in the digital asset markets in December 2021, the balance sheet remains strong heading into the second half of FY2022,” the company said.
Its two core products – Sell My Shares and Drawbridge, its regtech compliance software – are both well positioned as financial securities markets such as the ASX move to distributed ledger technology, DigitalX said.
‘Very pleasing’ results
“The half-yearly result is very pleasing from the company’s perspective,” said Lisa Wade, the company’s new chief executive.
“Revenues across the funds management and product development divisions were relatively even; we expect to be able to reduce our one-off costs in 2022; and importantly we have now established the foundations of our business moving forward.”
“I am particularly happy with our inaugural sustainability report and fresh ESG focus and am looking forward to sustainability being an ongoing focus – in terms of not only the delivery of shareholder returns (but) also on the impact of the value we create.”
Wade joined DigitalX just recently, the company having poached her from NAB shortly before Christmas.