mF International (MFI) Q2 2024 earnings summary

Executive summary

• Revenue declined 11.9% year-over-year to HK$12.5 million (US$1.6 million) for the six months ended June 30, 2024, mainly due to lower demand for initial setup, installation, and customization services.

• Net loss was HK$5.5 million (US$0.7 million), reversing from net income of HK$2.2 million in the prior year period.

• Growth in subscriptions, hosting, support, maintenance, and white-label services partially offset revenue declines in other segments.

• Significant investments in business development and marketing consulting agreements totaling US$1.6 million were made to support future growth.

• Management remains confident in the business strategy, focusing on technological enhancements, regional expansion, and talent investment.

Financial highlights

• Revenue: HK$12.5 million (US$1.6 million), down from HK$14.2 million year-over-year.

• Gross profit: HK$5.3 million (US$0.7 million), down 27.2% from HK$7.3 million.

• Net loss: HK$5.5 million (US$0.7 million), compared to net income of HK$2.2 million.

• Basic and diluted loss per share: HK$0.45 (US$0.06), versus earnings per share of HK$0.19 last year.

• Cash and restricted cash at June 30, 2024: HK$32.8 million (US$4.2 million), up from HK$6.8 million a year earlier.

Segment performance

• Initial setup, installation, and customization revenue fell 69.8% to HK$1.1 million due to decreased demand.

• Subscription revenue rose 7.3% to HK$5.4 million, reflecting increased access rights to trading platforms.

• Hosting, support, and maintenance revenue increased 17.7% to HK$2.3 million.

• White-label services revenue grew 55.6% to HK$1.5 million, driven by more customers.

• Liquidity services revenue declined 20.4% to HK$1.0 million due to lower transaction volume.

• Quotes/news/package subscription revenue decreased 10.4% to HK$1.2 million as customers opted for basic packages.