- Revenue Growth of 56% and Pretax Income* Growth of 417% vs.
2022 Q1
- Recently Announced Agreement with Global Fintech Innovator
Kakao Pay to Accelerate Siebert’s Capabilities and Growth
Plans
Siebert Financial Corp. (NASDAQ: SIEB) (“Siebert”), a
diversified provider of financial services, today reported
financial results for the first quarter ended March 31, 2023.
First Quarter 2023 Financial Highlights
- Revenue of $16.2 million compared to $10.3 million in the first
quarter of 2022
- Pretax income* of $4.4 million compared to a pretax loss* of
$1.4 million in the first quarter of 2022
- Net income available to common stockholders of $3.2 million
compared to net loss available to common stockholders of $1.0
million in the first quarter of 2022
- Earnings per share of $0.10 compared to loss per share of $0.03
in the first quarter of 2022
Recent Business Highlights
- Kakao Pay, a fintech subsidiary of Korean-based conglomerate
Kakao Corp., announced an agreement to purchase a 19.9% stake of
Siebert of newly issued shares for approximately $17 million on
April 27, 2023, and subject to shareholder and regulatory approval,
Kakao Pay will acquire an additional 31.1% of Siebert of newly
issued shares.
- Kakao Pay will leverage its technology expertise in the
financial services sector and work in partnership with Siebert to
strengthen the company’s business and growth strategy, while
providing an enhanced user experience and additional benefits for
users who invest in foreign stocks.
Management Commentary
“We are extremely excited about our results in the first quarter
of 2023 and our new partnership with Kakao Pay” said Gloria E.
Gebbia, controlling shareholder and board member of Siebert. “We
welcome this strong start to 2023 with great results from our
current business lines and the beginning of our partnership with
one of the leading global financial services innovators to expand
our reach and enhance our offerings. We look forward to working
with Kakao Pay as we chart the next phase of our evolution and
continue to build on Muriel Siebert’s legacy while modernizing our
offerings to meet evolving client demand.”
Andrew Reich, CFO of Siebert, commented: “We delivered very
strong results for revenue and pretax income this quarter which
demonstrates our ability to navigate volatile market conditions
with a diversified model. Revenue grew 56% year-over-year and was
driven primarily by higher interest income and an unrealized gain
on our U.S. government securities portfolio. Our Securities Finance
division continues to be a strong business line with another great
quarter of results as well. Pretax income for the first quarter
included a temporary unrealized gain of $1.0 million on our U.S.
government securities portfolio compared to a temporary unrealized
loss of $2.2 million in the first quarter of 2022. We also
delivered an improvement to both our pretax income and margins as
we continue to improve profitability. Looking ahead, we remain
focused on profitable growth with a strong balance sheet and a
diversified business model.”**
*Pretax income / loss represents the line item captioned “Income
(loss) before provision for (benefit from) income taxes” in the
statements of operations in Siebert’s 2023 Q1 10-Q.
**Refer to Siebert’s 2023 Q1 10-Q, Item 2. Management’s
Discussion and Analysis of Financial Condition and Results of
Operations.
Notice to Investors
This communication is provided for informational purposes only
and is neither an offer to sell nor a solicitation of an offer to
buy any securities in the United States or elsewhere.
About Siebert Financial Corp.
Siebert is a diversified financial services company and has been
a member of the NYSE since 1967 when Muriel Siebert became the
first woman to own a seat on the NYSE.
Siebert operates through its subsidiaries Muriel Siebert &
Co., Inc., Siebert AdvisorNXT, Inc., Park Wilshire Companies, Inc.,
RISE Financial Services, LLC, Siebert Technologies, LLC and
StockCross Digital Solutions, Ltd. Through these entities, Siebert
provides a full range of brokerage and financial advisory services
including securities brokerage, investment advisory and insurance
offerings, securities lending, and corporate stock plan
administration solutions. For over 55 years, Siebert has been a
company that values its clients, shareholders, and employees. More
information is available at www.siebert.com.
About Kakao Pay
Kakao Pay is a TechFin subsidiary of Kakao Corp., spun off in
April 2017. Kakao Pay has been building a lifestyle financial
platform leading the transition into a wallet-less society where
all we need is a smartphone to pursue any economic activity at any
time in any place.
Since Kakao Pay launched the first mobile payment service in
Korea in 2014, Kakao Pay has grown into the industry’s leading
innovator, offering a diverse lineup of innovative financial
services including online/offline payment, money transfer,
membership, bill payment, and authentication. Starting with the
investment service in November 2018, Kakao Pay has expanded its
services from credit rating to loans and insurance providing easy
access to financial services for everyone. The company is
alleviating multiple inconveniences by offering daily financial
services and accomplishing remarkable growth.
Cautionary Note Regarding Forward-Looking Statements
The statements contained in this press release, that are not
historical facts, including statements about our beliefs and
expectations, are “forward-looking statements” within the meaning
of the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements preceded by, followed
by or that include the words “may,” “could,” “would,” “should,”
“believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,”
“project,” “intend” and similar words or expressions. In addition,
any statements that refer to expectations, projections, or other
characterizations of future events or circumstances are
forward-looking statements.
These forward-looking statements, which reflect our management’s
beliefs, objectives, and expectations as of the date hereof, are
based on the best judgement of our management. All forward-looking
statements speak only as of the date on which they are made. Such
forward-looking statements are subject to certain risks,
uncertainties and assumptions relating to factors that could cause
actual results to differ materially from those anticipated in such
statements, including, without limitation, the following: economic,
social and political conditions, global economic downturns
resulting from extraordinary events such as the COVID-19 pandemic
and other securities industry risks; interest rate risks; liquidity
risks; credit risk with clients and counterparties; risk of
liability for errors in clearing functions; systemic risk; systems
failures, delays and capacity constraints; network security risks;
competition; reliance on external service providers; new laws and
regulations affecting our business; net capital requirements;
extensive regulation, regulatory uncertainties and legal matters;
failure to maintain relationships with employees, customers,
business partners or governmental entities; the inability to
achieve synergies or to implement integration plans and other
consequences associated with risks and uncertainties detailed in
our filings with the SEC, including our most recent filings on
Forms 10-K and 10-Q.
We caution that the foregoing list of factors is not exclusive,
and new factors may emerge, or changes to the foregoing factors may
occur, that could impact our business. We undertake no obligation
to publicly update or revise these statements, whether as a result
of new information, future events or otherwise, except to the
extent required by the federal securities laws.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230515005217/en/
Investor Relations: Alex Kovtun and Matt Glover Gateway
Group, Inc. 949-574-3860 sieb@gatewayir.com
Siebert Financial (NASDAQ:SIEB)
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