The UK subsidiaries of the global company XTX Markets have published its financial results for 2023, revealing a double-digit profit decline. Despite this, the firm's management views the results positively, noting that 2022 was an exceptionally strong financial year.

Net Revenue and Profit at XTX Markets UK Sharply Down

According to the report published this week, XTX Holdings (UK) Limited, which includes two trading companies, XTX Markets Limited and XTX Markets Trading Limited, recorded net revenue of £654.4 million, down from £972.7 million reported the previous year - a 33% drop.

The decrease in net profit was even more pronounced, shrinking by 56% from £19.2 million in 2022 to £8.4 million last year. However, the company's management considers these results satisfactory.

„The directors consider that the Company’s underlying performance has met expectations, taking into account the strong performance in 2022 driven by favorable conditions in several key markets,” the XTX Holding (UK) Limited's report stated. “Profit after tax for the year was £8 million, giving a profit after tax margin for the year of 1%.”

However, these are not all the subsidiaries that account for XTX's operations in the UK. There is also a third one, XTX Markets Technologies Limited, which generates most of the company's revenues and profits in the region. In its case, there was also a noticeable decline. Net revenue slipped from £1.51 billion to £1.35 billion, falling by over 13%. Meanwhile, net profit decreased by 23%, from £1.08 billion to £826.9 million.

For all UK entities combined, XTX Markets Limited, XTX Markets Trading Limited and XTX Markets Technologies Limited, the total net revenue was slightly above £2 billion, with a net profit of $835.4 million. This means that compared to the record results achieved in 2022, revenue shrank by 20%, and net profit decreased by nearly 24%.

What's New at XTX?

In April, the company revealed its intention to construct a substantial data center Data Center A data center is a building or network used to house computer systems and associated components, such as telecommunications and storage systems.This generally includes redundant or backup power supplies, redundant data communications connections, environmental controls, and various security devices. Large data centers are industrial scale operations using as much electricity as a small town.Over the past decade, data center space has been growing at an incredible rate. This has increased as more A data center is a building or network used to house computer systems and associated components, such as telecommunications and storage systems.This generally includes redundant or backup power supplies, redundant data communications connections, environmental controls, and various security devices. Large data centers are industrial scale operations using as much electricity as a small town.Over the past decade, data center space has been growing at an incredible rate. This has increased as more Read this Term in Finland. By establishing its own data center, XTX Markets aims to maintain greater control over its technological infrastructure and ensure the highest levels of security and performance.

Meanwhile, the company launched XTX Labs, a dedicated division focused on advancing machine learning Machine Learning Machine learning is defined as an application of artificial intelligence (AI) that looks to automatically learn and improve from experience without being explicitly programmed. Machine learning is a rapidly growing field that also focuses on the development of computer programs that can access data and use it learn for themselves.This has many potential benefits for most industries and sectors, including the financial services industry. Machine Learning ExplainedMachine learning can be explained Machine learning is defined as an application of artificial intelligence (AI) that looks to automatically learn and improve from experience without being explicitly programmed. Machine learning is a rapidly growing field that also focuses on the development of computer programs that can access data and use it learn for themselves.This has many potential benefits for most industries and sectors, including the financial services industry. Machine Learning ExplainedMachine learning can be explained Read this Term-powered algorithmic trading research. The newly introduced AI Residency Program, spearheaded by XTX Labs, delves into the intersection of finance and machine learning.

However, the company has also taken a proactive stance against the growing threat of financial fraud. In March, XTX Markets warned the public about fraudulent schemes that falsely claim association with its brand. The firm noted an alarming increase in bogus foreign exchange (FX) and cryptocurrency scams perpetrated by websites, individuals, and entities attempting to exploit the trust and reputation of XTX Markets.