Capital.com UK reported a significant drop in net profit for 2023, despite a modest increase in revenue. The company’s net trading profit hit a whopping $29.7 million, up from $29.1 million in 2022, with gross profit rising to $26.9 million from $22.8 million. However, administrative costs surged to $23 million, up from $17 million, leading to a net profit decline of over 60%, down to $1.5 million from $4.1 million the previous year.
Still Paid Dividends
Despite the profit drop, Capital.com UK paid a $5 million dividend to shareholders, a move not made in the previous year. The company attributed the increased costs to investments in IT and second-line infrastructure employees to meet regulatory requirements, resulting in staff costs rising from under $11 million to over $16.5 million. The headcount increased by 27%, bringing in additional expertise to enhance service and support.
Capital.com UK remains financially strong, with £9.2 million in cash and cash equivalents and £7.4 million in capital. In 2023, overall income increased to £29.7 million, and client funds grew to £20.5 million. Total assets remained stable at just over $30 million, similar to 2022.
In March, Capital.com UK suspended new account creations to maintain service quality for existing clients. This decision reflects the company’s focus on delivering uncompromised service levels amidst its operational challenges.
H1, 2024 – Triple-digit Millions
Globally, Capital.com reported double-digit revenue and account growth in the first half of 2024. The broker’s main headquarters in Cyprus, regulated by CySEC, oversees its global operations. Recent reports indicate that global trading volumes exceeded $1.2 trillion in 2023, with revenue hitting “triple-digit millions” in the first half of 2024. From January to June, revenue increased by 35%, and registered accounts grew by 63%, with trading volume reaching $725 billion.
Ariel Segev, Group Chief Financial Officer, highlighted the strategic investments in talent, IT, and systems driving global growth. The company also appointed Jessica Bliesner as the new Group Chief Operating Officer, based in London.
Capital.com launched a bug bounty program with the crowdsourced security platform Integrity, aiming to enhance user data protection and platform integrity. This initiative demonstrates the company’s commitment to security and innovation.
