Amid a surge in active clients, Admirals has reported a loss of EUR 3.9 million for the first half of 2023. Despite a growing clientele and a positive trend in corporate CFD products, the company faced challenges in maintaining profitability due to increased costs and decreased revenue.
The FCA-regulated broker witnessed remarkable growth in its customer base, with active clients soaring by 96% to reach 65,636 and accounts increasing by 84% to 75,975. Moreover, new applications surged by an astounding 222%, indicating a rising interest in the business among users.
However, despite these encouraging indicators, Admirals struggled with a 47% increase in the gross-to-income ratio, primarily due to a reduction in revenue. The company’s commodity CFD segment, characterized by low spreads, stood out with a positive performance, contributing 27% to the total gross trading revenue. Conversely, other products like stocks and ETFs experienced negative performance during the same period.
Admirals Report EUR 3.9M Loss Despite Surge in Active Clients
Sergei Bogatenkov, CEO and Chairman of the Management Board at Admirals remains optimistic about the industry’s prospects. He emphasized the importance of strategic partnerships and hinted at potential mergers and acquisitions to accelerate growth and enhance the company’s market presence.
Admirals’ recent financial report reflects both challenges and opportunities in the forex brokerage industry. Despite facing a loss of EUR 3.9 million, the company has demonstrated significant growth in its client base, indicating a positive trajectory for future expansion.
Admirals’ new CEO, Sergei Bogatenkov, steers the company towards strategic growth initiatives, including potential mergers and acquisitions; there is a sense of optimism about the firm’s prospects. With a focus on enhancing profitability and market presence, Admirals remains committed to navigating through the current transition phase and emerging as a stronger player in the competitive forex market.
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