Futu Slumps After Fourth Quarter Earnings, Lacks Revenue By Investing.com
By Sam Boughedda
Investir.com — Future Holdings Ltd (NASDAQ:) Shares fell 10% on Friday after reporting pre-bell earnings that missed earnings expectations.
The online brokerage and wealth management platform posted revenue of $205.5 million and adjusted net income of $68.4 million in the fourth quarter. Adjusted earnings per share were 42 cents. Revenues and earnings missed analysts’ expectations.
The company’s brokerage commission and management fee revenue increased 19.3% to $109.9 million, with interest income increasing 83.3% to $79.2 million .
However, other revenue, which includes wealth management and business services, fell 2.2% to $16.4 million year over year.
Futu users increased by 45.8% year-on-year to reach 17.40 million at the end of the quarter. Meanwhile, the total number of registered customers grew 93.8% year-on-year to 2.75 million, with the total number of paying customers increasing 140.8% to 1.24 million .
Total trading volume was $157.2 billion in the fourth quarter.
Futu, which owns the Moomoo investment platform and is backed by Tencent’s venture capital affiliates, Sequoia Capital, said the Moomoo platform has further increased its visibility in markets such as the United States and Singapore, by 2021.
Following the report, shares of the company fell more than 10%, adding to its losses over the past 12 months, hitting a low of $24.05.
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