ATFX revenue rises 35% in 2020, but loss nearly doubles

abdelaziz Fathi

AT Global Markets (UK), the FCA-regulated arm of financial services group ATFX, has released its financial results for the full year ending October 31, 2020, which featured mixed performance across a number of key metrics, ranging from profit to revenues.

Per a regulatory filing with the UK Companies House, ATFX UK saw its operating revenue grow to £3.0 million in FY 2020, up from £2.23 million a year ago, or 35 percent higher year-over-year.

Despite revealing a significant increase in turnover for the period, the broker is still closing out the year at a loss. Specifically, the firm reported a net loss of £766,416 for 2020, nearly doubled when compared to a net loss of £383,861 in the previous year.

The primary culprit for the downbeat performance of ATFX’s bottom-line metrics might have been the higher operational expenses, which is a market-wide phenomenon due to changes in regulations and market conditions.

Over the previous fiscal year, ATFX UK reported a 54 percent increase in its administrative expenses, climbing to £3.18 million in 2020 from £2.06 million a year ago. The company attributed this substantial rise to investing in “enhancing marketing channels, expansion and development.”

“The overall result for the company is neutral. The directors of the company will continue to adjust the strategy to face the ongoing pandemic, the fallout of Brexit and continued changing regulatory landscape,” ATFX said.

Other business highlights show that the company issued £4.65 million worth of shares during the year. The capital injection helped ATFX UK’s net assets nearly triple to £6.3 million from £2.4 million reported back in 2019. This figure included £5.7 million in cash balances.

ATFX UK also said its trading volumes increased “significantly” in the early part of 2020 and expanded activities during the year, supported by the development of its institutional brand, ATFX Connect.

ESMA’s restrictions have already had a more severe impact than most CFDs brokers anticipated. For instance, the European regulator has banned any welcome bonuses or other incentives that encourage clients, prospective or existing, to trade CFDs or to trade larger contracts. This was problematic for many firms who often rely on such bonuses as a means of attracting clients.

ATFX, however, has recently entered into a new phase of growth, which saw the broker expand its geographical footprint across Asia, as well as enhance its product offering, focusing on localization.


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