Admirals revenues halves, turns to net loss in 2023

FX brokerage firm Admirals (formerly Admiral Markets) has reported its interim financial results for the six months ending June 2023, which saw weak performance across key components of its business.

Compared to a period of strong growth in 2022, Admirals had seen notable weakness in its financial figures in 2023. More specifically, Admirals disclosed a net operating revenue of €21 million compared to €43 million for H1 2022. The figure is down by more than 50 percent year-over-year.

Also, Admiral Markets saw its operating expenses tick up in 2023, after seeing a figure of €16 million – this was up 33 percent year-over-year from €12 million in 2022.

Meanwhile, the bottom line figure shows that Admirals’ EBITDA and net loss were -€2.9 million and -€4.8 million, respectively. In 2022, the company posted a net profit of €24 million in the six months through June 2022.

Despite its weak financials, the number of active clients within the group surged by an impressive 96%, reaching a total of 65,636 clients when compared to the same period in 2022. For reference, there were 33,493 active clients during the first half of 2022 and 40,235 active clients in the first half of 2021.

“Admirals has always emphasized the importance of a long-term strategy. The expansion in new regions, leveraging the existing licenses and global brand presence, is as remarkable as our commitment is clear. We are driven by the desire to pursue progress and innovation,” said the CEO of Admirals Group AS, Sergei Bogatenkov.

Admirals revealed earlier in May its intention to merge with its Estonian subsidiary, Admirals Markets AS. The anticipated completion of the merger is set for the first half of 2024.

As part of this plan, the company aims to revoke the subsidiary’s investment company license in Estonia.  Admirals said the decision to restructure arises from “the fundamental need and strategic decision” to expand its global presence.

Admirals Group AS boasts a physical presence in 18 countries through its subsidiaries, which serve clients in over 145 countries.

Despite the ongoing restructuring, Estonia remains a crucial strategic location for Admirals Group. The company reaffirms its commitment to the country by maintaining its headquarters in Tallinn, where it currently employs over 100 professionals. Additionally, Admirals Group’s lending platform, MoneyZen, will remain regulated by the Estonian financial authority.

Earlier in April, Admirals opened a new office in Nigeria as part of its growth strategy to solidify its position as a key financial services provider in Africa. The milestone comes less than a year after Admirals SA (PTY) Ltd, an operating subsidiary of Admirals, received regulatory approval to offer CFDs trading to investors in South Africa.