eToro (UK) Limited reported net income of $143.8 million for the year ended Dec. 31, 2022, down 46% from $264.2 million in 2021, as reduced trading activity particularly in cryptocurrency weighed on the multi-asset brokerage platform.
The London-based company, which is regulated by the Financial Conduct Authority, recorded profit before tax of $4.4 million, up from $3.8 million in the prior year. Net profit after tax was $3.4 million compared to $3.0 million in 2021.
Trading commissions, the company’s largest revenue stream, fell to $131.3 million from $307.9 million the previous year. The decline reflected what the company described as a significant reduction in trading activity across the year, particularly in crypto markets during a prolonged bear market.
Operating expenses fell 46% to $139.9 million from $258.0 million as the UK business streamlined operations and cut costs. Of these expenses, $102.3 million related to the company’s share of support services provided by the wider eToro Group.
The company added nearly 100,000 funded UK accounts during 2022, bringing total funded accounts to 2.8 million globally across the eToro Group, a 16% year-over-year increase.
In August 2022, eToro UK converted a $22.8 million capital note into common equity share capital to meet regulatory capital requirements. The company held $250.4 million in client money at year-end, down from $322.2 million in 2021.
Average headcount increased to 59 employees from 47 in 2021. No dividends were paid during the period.
