By Andrea Figueras
Shares in Smartbroker Holding plunged on Tuesday after the company downgraded its guidance for the year on the back of lower first-half preliminary revenue and earnings.
At 1140 GMT, shares were down 12% at EUR10.80.
The German digital brokerage platform now expects consolidated earnings before interest, taxes, depreciation and amortization after customer-acquisition costs to range from a loss of 1 million euros ($1.1 million) to a profit of EUR1 million, down from a prior forecast of profit of between EUR1 million and EUR4 million.
As for revenue, the company now aims to achieve between EUR46 million and EUR51 million, instead of its previous guidance from EUR51 million to EUR56 million.
Smartbroker posted preliminary first-half Ebitda after customer-acquisition costs of EUR1.7 million, down from EUR4.6 million in the year-earlier period, while revenue fell 25% to EUR23.4 million.
The company attributed the reduction to a challenging equity market environment marked by the war in Ukraine, inflation and increased interest rates. Low market volatility also weighed on Smartbroker’s first-half performance, particularly in the media division, the company said.
Write to Andrea Figueras at [email protected]
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