eToro (UK) Limited reported net income of $125.7 million for the year ended Dec. 31, 2023, down 14.6% from $147.3 million in the prior year, according to accounts filed with Companies House.
The London-based social trading platform recorded profit before tax of $3.2 million, compared with $4.4 million in 2022, a decline of 27.5%. Net profit after tax fell to $2.5 million from $3.4 million the previous year.
Trading commissions, the company’s primary revenue stream, dropped 19.3% to $106 million from $131.3 million in 2022. The decline was partially offset by other income of $10.5 million, up from $3.5 million, which consisted primarily of interest income from client money.
Administrative and operating expenses decreased 11.2% to $124.3 million from $139.9 million, with intercompany fees representing the largest cost component at $97.7 million.
The company held $320.5 million in client money at year-end, up 28% from $250.4 million in 2022. An additional $258.8 million of client money was held with eToro (Europe) Limited as margin.
Average headcount remained stable at 60 employees, compared with 59 in the prior year.
The FCA-regulated firm, which provides a multi-asset social investment platform allowing clients to trade contracts for differences, stocks, and cryptoassets, noted it added significant funded UK accounts during the year while preparing for Consumer Duty rules that took effect in mid-2023.
No dividends were paid during the period.
