The UK unit showed an increase of 717% in 2020 compared to 2019.
eToro (UK) has filed the financial statements for 2020. The company announced its net revenue as $41.86 million, which was a jump of 717% compared to 2019. Since eToro group generated $602 million from its all-over-the-world operations, eToro (UK)’s revenue represents nearly 7% of eToro group’s total revenue.
The latest Companies House filing of eToro UK stated:
“The increase in revenues was driven by a significant growth in our client base as a result of an influx of new UK users as well as the transfer of some existing clients from other eToro entities to our UK entity,”
With this significant increase in Revenue, there is also a significant increase in the expenditures of UK Operations. There is a jump of 602% compared to 2019, from $5.7 million to $39.9 million.
“Other increases in operating expenses include a rise in staff costs due to new hires in the growing UK team, higher professional services fees, and an increase in clearing fees as a result of increased deposit volumes,” the latest Companies House filing added.
eToro (UK) achieved a net profit of $1.8 million
When we consider all income sources and other expenses of the company, we can see that the pre-tax profit of the UK entity has reached $2.16M, compared to minus(-) $519,858 profit in 2019. The company’s net profit for 2020 was $1.8M.
To list itself on the American stock exchanges, eToro joined a definite agreement with a black check company. Meantime, requests for its assistance skyrocketed with the volatility resulted from Covid in early 2020 and then meme stock craze in 2020.
The global brokerage company, which has 20 million users in total, with 5 million traders signed up in 2020, announced that along with the copy trading services, the majority of users invested in commission-free stocks or cryptocurrencies last year.