CALGARY, November 6, 2018 — Solium Capital Inc. (TSX: SUM) (“Solium” or the “Company”) today announced its financial results for the three and nine month periods ended September 30, 2018.

 

Financial and operating highlights for the three and nine month periods ended September 30, 2018, compared to the same periods in 2017:

  • Revenue increased by 38% to $28.3 million in the third quarter of 2018 and by 29% to $81.3 million for the nine month period ended September 30, 2018;
  • Earnings from operations increased from $1.0 million to $2.6 million in the third quarter of 2018 and decreased from $6.3 million to $2.7 million for the nine month period ended September 30, 2018;
  • Net earnings increased by $2.6 million to $2.3 million in the third quarter of 2018 and decreased by $0.8 million to $3.0 million for the nine month period ended September 30, 2018;
  • Adjusted EBITDA1 increased to $5.4 million in the third quarter of 2018 and to $11.1 million for the nine month period ended September 30, 2018;
  • Cash on hand as at September 30, 2018 totaled $96.1 million.


Key factors affecting the results in the three and nine month periods ended September 30, 2018:

  • License revenue License and subscription fees increased by $5.4 million or 38% during the third quarter of 2018 and by $11.6 million or 28% for the nine months ended September 30, 2018, as compared to the same periods in 2017. Based on local currencies, the growth was 38% during the third quarter and 26% for the nine months ended September 30, 2018. Growth in license revenue is largely driven by organic growth from new sales in all regions, the U.S. white label agreements and revenue from the acquired Capshare and Advanced-HR businesses.
  • Transaction activity In addition to the recurring license revenue that Solium collects for the use of its technology platforms, the Company also collects re-occurring transaction based revenue. Transaction based revenue increased by $1.6 million or 27% during the third quarter of 2018 and by $4.8 million or 24% for the nine months ended September 30, 2018, as compared to the same periods in 2017. The per-participant trading activity was 18% higher in the third quarter of 2018 compared to the same period in 2017 and 18% higher than the historical five-year Q3 average.
  • Operating costs – Operating expenses (excluding 2017 sales tax adjustment) increased by $5.2 million or 25% during the third quarter of 2018 and by $20.8 million or 36% for the nine months ended September 30, 2018, when compared to the same periods in 2017. The increases are primarily driven by planned hiring to support the U.S. white label agreements; costs from the new businesses of Capshare, Solium Analytics and Advanced-HR; and the resulting incremental systems and infrastructure costs. The Company also incurred costs in the first half of 2018 associated with an investment opportunity that did not materialize, further contributing to the nine month period increase over 2017. The Company had 769 full-time equivalent employees (FTEs) at the end of the third quarter of 2018 compared to 611 FTEs at the end of the third quarter of 2017.

 

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