Admirals Sees 43% Decline in 2021 Revenue, Active Clients Improve

Estonia-based Admirals Group AS (formerly Admiral Markets Group), which operates FX and CFDs broker brand Admirals, reported a 43 percent decline in its annual revenue for 2021 as the impact of the Covid-induced market volatility vanished. Other key financial paraments of the broker also went down last year.

The group company generated €35.7 million as net trading income or revenue in 2021, which is down from the previous year’s record €62.2 million. Out of the total 2021 revenue, €18.4 million came in the first half of the year, while the rest €17.3 million in the second half.

With EBITDA shrinking 96 percent to €1 million, the total net profit came in at €0.1 million, down from €20.7 million in the prior year. The net profit per share of the company shrank 8.2 percent to €0.1 percent.

Admiral Markets AS, the Estonia-regulated entity of the group, brought in €20.5 million of the total revenue, along with €0.9 million in net profit. The rest was generated by the other international subsidiaries.

Correction in the Markets

“We’ve all seen how COVID-19 has shaken up the markets. The first half of 2020 was unique in terms of high market volatility, which made for a strong start for the trading year,” the group company stated.

“The year 2021 brought low volatility on the financial and commodity markets, which translated into a decline in revenue and profitability. Along with the lower volatility, the transaction activity of clients also decreased, but not significantly compared with the same period in 2020, and still impressively higher than in 2019.”

Indeed, the value of trades in the year decreased by 16 percent to €842 billion as the number of trades shrunk by 22 percent to 52.1 million. Meanwhile, the number of active accounts and clients strengthened by 2 percent and 1 percent, respectively.

However, Admirals Group highlighted that the figures for 2021 improved strongly when compared with the pre-pandemic levels. The latest yearly trading revenue increased by 7 percent when compared with 2019. Furthermore, the trading volume strengthened by 64 percent, along with a 103 percent jump in active clients.