Goldmoney Inc. Reports Profitable Q1 Earnings

Goldmoney Inc. announced their first quarter results today, and the figures look good for the precious metal financial service and technology company. The company’s 2018 Q1 ended June 30, 2017.

For the first time in Goldmoney history, the company reported an adjusted profit, amounting to $3.3 million (all figures CAD). Quarterly revenue came in at $125 million, improved from $112 million year-over-year.

Perhaps the most important metric reported is positive earnings per share of $0.03, improved from a loss of $0.03 per share year-over-year. The non-IFRS adjusted quarterly share profit $0.05. Goldmoney shares currently sit at $2.70 a piece, having grown over 15 per cent from earlier in the week.

“We are happy to report our first-ever quarterly profit under both IFRS and what is in my view the more relevant adjusted cash basis,” said Goldmoney CEO Roy Sebag. “Our group achieved this feat only eight quarters after our first platform launch and sales.”

These Q1 2018 results did show a decline in revenue compared to the final three quarters of 2017, but the fact that Goldmoney is now turning a profit means good things. This is all despite a strong growth by the Canadian dollar and falling prices for gold and silver, as those financial hurdles were overcome by investment gains from management’s capital and a strong currency risk management strategy. Goldmoney also reported $210 million of long-term precious metal holdings.

Goldmoney acquired Schiff Gold at the end of last year, but management was quick to say the acquisition was not the sole factor responsible for year over year growth.

The company is primarily an online entity but plans to open physical locations are now coming to fruition. A Toronto location will come next month, along with a location in the company’s Channel Islands headquarters in October. Physical branches will support client education, bespoke customer service, accelerated onboarding and more.

“We are looking forward to a renewed marketing campaign, the launch of our global physical branches, growth from our partnerships and ecosystem investments in peer-to-peer lending platform Lend and Borrow Trust and investment jewelry platform Menē, and the continuation of client-focused growth initiatives such as the enhanced Goldmoney Holding service,” the company wrote in a release.