Admirals reports a loss of EUR 3.9M despite a surge in active clients. The new CEO aims for strategic growth amid the transition.
Despite growing numbers of clients and a positive trend for the corporate CFD products, Admirals forex broker reported a 3.9 million euro loss for the first half of 2023. While the broker enjoyed rapid growth in its customer base, it registered a decreased profitability due to higher costs and decreased revenue.
It is noteworthy that the FCA-regulated broker experienced tremendous growth of active clients and accounts during this time: 96% (up to 65,636) and 84% (to 75,975), respectively. New applications also increased dramatically by a shocking 222%, which implies that more and more users are getting into the business.
Notwithstanding these positive signs, the 47% increase in the gross-to-income ratio highlights the revenue reduction adversely affecting profits.
Sergei Bogatenkov, CEO and Chairman of the Management Board at Admirals forex broker, says the industry`s prospects are quite promising. He spotlighted partnerships and hinted at the next step, like mergers and acquisitions, to speed up the growth and increase the company's presence in the market.
This low-spread broker's commodity CFD was, however, positive, a noteworthy 27% of the total gross trading revenue. Yet, other products, such as stocks and ETFs, experienced negative performance during the same period.
Transitioning to a CEO position, Alexander Tsikhilov replaces Bogatenkov. In other forex forex news, Sergei Bogatenkov left Admirals along with Andreas Ioannou.