GTN's FCA-Regulated European Arm Posts $3.3 Million Loss in First Trading Year

GTN Europe Financial Services Limited, the Financial Conduct Authority-regulated entity established by the fintech group for its European expansion, recorded its first full year of trading revenue in 2025, alongside a $3.34 million loss. The deficit nearly quadrupled from the prior year as staffing and operational costs increased. The London-based company, a subsidiary of UAE-based GTN Group Holding Limited, began trading in April 2025 and holds the FCA license secured in 2024 as part of the group's European growth strategy.

Total revenue reached $555,747, up from nil in the prior year, driven by brokerage fees and commissions of $322,359, with additional contributions from client setup fees and interest income. Staff costs rose to $2.16 million from $479,587, and administrative expenses climbed to $1.54 million. The loss after tax widened to $3,344,093 from $855,918 in 2024. Directors stated the company plans to grow "by expansion of its existing business lines and addition of new products," while continuing to review costs.

A GTN spokesperson said the results should be viewed in the context of the company's expansion strategy rather than as a sign of weak trading performance. According to the spokesperson, the 2025 figures "reflect the planned growth phase and the group-supported cost of establishing the business" during its first full year of operations.

Geographic revenue data revealed that the Middle East accounted for $294,887, more than half of total revenue, surpassing Europe's $194,307. The UK, Channel Islands, and Isle of Man contributed $52,790, with minimal revenue from the Americas and Asia. The company attributed revenue partly to onboarding external clients and migrating trade flow from GTN affiliates, including its Middle East and Asia units, reflecting an early reliance on intra-group business.

GTN provides infrastructure-as-a-service to banks, brokers, and fintech firms, competing with players such as DriveWealth, Alpaca, and Interactive Brokers' GlobalTrader unit. Commercial chief Salim Sebbata, who joined from Capital.com in April, stated the firm has "a strong enough product and the right regulatory footprint to build that organically." The 2025 results suggest the build remains in an early, cash-intensive stage.

Group funding covered the shortfall, with the parent injecting $2.64 million in equity, raising issued share capital to $5.92 million. The unit also held a $2 million deposit from its Middle East affiliate and a $1 million advance from the parent. Shareholders' funds fell to $1.71 million from $2.41 million, and the regulatory capital surplus more than halved to $683,836 from $1.47 million. Directors noted the business remains a going concern only due to a parental guarantee from GTN Group Holding. Aggregate directors' remuneration rose to $854,742 from $293,924, with the highest-paid director receiving $367,541, nearly triple the prior year, against an average workforce of nine employees and a $3.3 million loss.