Shares in ASX-listed blockchain firm, Digital X, have been sold-down after the company posted a significant drop in revenue for the 2019 financial year.
In its Preliminary Financial Report, Digital X (ASX:DCC), reported an 89% revenue fall for FY2019.
Revenue for the period totalled US$926,667, compared with US$8,211,408 in the previous financial year.
Digital X said the results were impacted by “a slow-down in the market and a significant draw down in the value of digital asset prices.”
The company’s loss for the year came in at US$2,477,603, compared with a profit of US$2,443,221 for the financial year ending 30 June 2018.
Digital X provides a diverse range of services to the blockchain and cryptocurrency industries, including corporate advisory, consulting, funds management and media.
Future of ‘Coincast TV’ in limbo
In July 2018 Digital X partnered with cryptocurrency media company, Coincast Media, to launch Coincast TV – a blockchain and cryptocurrency news program broadcast on the Sky News Business channel.
12 episodes went to air, but a second series has not eventuated.
“Coincast was involved with planning a second series of Coincast TV with other media channels, but was unsuccessful in securing a contract that would be profitable for the business. Coincast Media engaged with DIVAN.TV, an international TV streaming service which is available in more than 200 countries around the world, but the engagement did not yield commercial success,” said commentary in the Preliminary Financial Report,
Digital X says it’s now reviewing the viability of its joint venture with Coincast Media.
Despite what it describes as a “challenging market” the company remains committed to the blockchain sector.
Digital X expects to reveal a new blockchain commercialisation strategy in the coming months and also expects to report on its partnership with Bullion Asset Management, the developers of the xbullion gold-backed stable coin.
Digital X shares closed on Friday at .031 cents, down 16% for the week.