ETX Capital Sees 48% Jump in 2020 Revenue, Client Assets Touch Record PlatoBlockchain Data Intelligence. Vertical Search. Ai.

ETX Capital Sees 48% Jump in 2020 Revenue, Client Assets Touch Record

Monecor (London) Ltd, the operator of FX and CFDs broker ETX Capital, has reported a 48 percent jump in trading revenue in its recently published annual financials for fiscal 2020, ending December 31. The total client assets on the platform also jumped by 57 percent to a record £225 million.

According to the latest Companies House filing, revenue of the UK unit came in at £31.8 million, climbing from the prior year’s £21.3 million. The figures aligned with previously revealed data for the first eleven months of 2020 that showed a 49 percent yearly revenue growth.

ETX Capital’s revenue was primarily generated from bid-ask spreads, roll-over interests on funding, and the net impact of hedging. The filing detailed that spreads generated most of the income that jumped by 68 percent to £23 million. This represented around 77 percent of the total revenue of the broker. 

“This was primarily driven by unprecedented Covid driven volatility in Q1 and Q2,” the filing stated.

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While funding also increased by 8 percent to 8.9 million, the net impact of hedging was reduced by 94 percent to £0.2 million. It also generated additional revenue of £1.1 million from corporate broking.

Closed the Year in Profits

Despite a 9 percent jump in administrative costs, mostly due to an increase in staff costs and sales commissions, the broker reported a net profit of £428,000 for the period, recovering from a loss of £2.6 million in 2019.

The group EBITDA also came in at a profit of £2.7 million, compared to a loss of £1.2 million in 2019. The PBT stood at £0.3 million profit, up from the previous year’s loss of £3.2 million.

Commenting on the results, ETX Capital CEO, Philip Adler said: “The year has been truly eventful, I am very pleased with our results and the team performance during COVID and we finished on a high with the acquisition of ETX Capital by Swiss-based private equity firm Guru Capital which helped set our new vision and initiatives.”

Source: https://www.financemagnates.com/forex/brokers/etx-capital-sees-48-jump-in-2020-revenue-client-assets-touch-record/

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