Admirals broker saw a 43% revenue decline in 2021 as the post-pandemic continued to be a windfall for the trading industry.
Estonia-based broker Admirals reported a 43% drop in its annual revenue for 2021 due to the easing of market volatility that has spiked due to the post-COVID-19 pandemic. Not only affecting income, but other major financial parameters also appear to experience a decline.
Increasing Number of Active Clients
The company managed to generate €35.7 million in net trading revenue in 2021, down from the previous year's record of €62.2 million. Of the total revenue, €18.4 million came from the first half of the year, while the remaining €17.3 million was in the second half. As for the total revenue category, Admirals generated €20.5 million, along with €0.9 million in net profit.
Admirals said that the cause of the decline was low volatility in financial and commodity markets. As we all know, COVID-19 successfully rocked the market in the first half of 2020. But in 2021, the sluggish market caused lesser revenue and profitability. Along with lower volatility, customer transaction activities also decreased, but not significantly compared to the same period in 2020, and still higher than in 2019.
In terms of trading value, Admirals recorded a decline of 16% to €842 billion as the number of trades shrank 22% to 52.1 million. However, the number of active accounts actually increased by 2% and 1%, respectively. In contrast to the 2019 figure, the forex and CFD broker experienced a surge in active clients of up to 103%.
Even so, Admirals overall posted a big improvement compared to the pre-pandemic period. The most recent annual trading revenue increased 7% and trading volume strengthened 64% compared to 2019.