eToro (UK) Ends 2020 with 717% Revenue Jump

eToro's British arm eToro (UK) Limited has published its yearly financials for 2020, ending on December 31. The broker reported a 717% year-over-year jump in its revenue to $41.9 million from $5.1 million in 2019.

According to the company, the increase in revenues was driven by significant growth in its 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 the UK entity.

To support the revenue growth, UK operating expenses increased significantly. The company spent $39.9 million in the year to run the UK operations, which is 602% up from the previous year’s $5.7 million. 

Most of these expenses can be attributed to eToro UK’s share of support and intermediary services provided by the group. Other expenses 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.

In addition, the company ended the year with a pre-tax profit of $2.2 million, compared to a loss of $519,858 in 2019. The net profit of the company for the year came in at $1.8 million.

Earlier this month, eToro has enhanced the way withdrawals are done​, improving users’ experience. eToro’s users now can select a destination payment method for their withdrawal, out of the possible ones for the requested amount.