Exness UK Reports Stable Revenues for 2019 Amid Shift to B2B Business
Exness (UK) Ltd, the UK arm of multi-regulated FX broker Exness, today unveiled its financial results for the fiscal year ending December 31, 2019, which were characterized by stable metrics in areas ranging from operating income to revenues.
In terms of the aggregated financial results, by the end of December 2019, Exness UK put together a YoY reflective of the difficult market conditions and regulatory pressures FX brokers faced, according to its latest filing with the UK’s Companies House.
The Most Diverse Audience to Date at FMLS 2020 – Where Finance Meets Innovation
As for its operating income, Exness UK in-line with many FX brokers saw a slight decline across its bottom-line metrics, having yielded a loss of $1.09 million (£840,516) compared to an operating loss of £774,743 for the fiscal year ending December 31, 2018.
Exness UK’s operating revenues came in at £27,649 ($35,865). However, the gross profit, before deducting the staff salaries and other administrative expenses, increased to £16,310 from -£15,585 in 2018.
Meanwhile, administrative expenses rose 13 percent year-on-year, coming in at £856,826 ($1.11 million) relative to £759,158 the year prior.
Turning to B2B Business in the Works
The results come as Exness, which is authorised by the FCA as an IFPRU €730K firm, continues to restructure its business.
Exness acquired its FCA license back in 2016 to operate a foreign exchange and CFDs brokerage business. After one year, the company launched an institutional offering, which is focused on providing institutional liquidity for FX, CFDs, metals, and commodities. In light of an internal business decision to focus on other markets and grow their B2B operations, Exness decided in 2019 to close the retail business in EU/EEA including the UK.
At the time, Exness and other retails brokers said that one of the reasons for the launch of the institutional business arm of the company is the recent changes in the regulatory environment. Indeed, the retail FX market in Europe is becoming relatively challenging for the brokers, which is why many brokers are looking into new opportunities in the wholesale liquidity and clearing market.
To fund the transformation process on a large scale, the owners of Exness injected capital of £2 million in May 2019.
Source: Read Full Article