Capital.com UK doubles revenues, profit in 2022
The UK business of multi-licensed online brokerage group Capital.com has reported its financials for its new fiscal year ending December 31, 2022. The group managed to best most of last year’s performance metrics, having grown its net income, and FY 2022 turned into the best revenue since it was founded.
Over the previous fiscal year, the broker saw its operating revenue double to £29.1 million in FY 2022, up from £15.4 million a year ago.
In terms of its bottom line, the firm reported its net profit at a figure of £4.1 million for 2022, higher than £1.85 million in the previous year.
Capital.com UK said it generates revenue primarily from rebates received from its parent company by serving as a matched principal broker in the CFDs and spread betting markets. This revenue stream includes a monthly service charge billed to the company’s parent, covering a portion of its operational expenses that are allocated to CCSV. The net revenue is calculated by deducting rebates paid to other affiliated companies for hedging activities.
“The business model that the Company operates means that it will always be a positive cash generating entity so long as the Capital Com Group (‘the Group’) is profitable. In the event that the Group becomes loss making, the Company will only be liable for a share of losses to the extent that its regulatory capital base can absorb them, before further financial support from Capital Com SV Investments Limited (‘CCSV’) would be applied,” reads the filing with the UK companies House.
Capital.com is a mobile CFD-focused brokerage firm which is operated by Capital Com SV Investments Limited, regulated by the Financial Conduct Authority (FCA) and the Cyprus Securities and Exchange Commission (CySEC).
Also, the firm says that its apps leverage advanced artificial intelligence technologies to deliver trading-related content in a personalized way. Additionally, Capital.com’s team is planning to roll out more advanced new AI features in the near future.
In 2022, the group encompassing Capital.com, Currency.com, and the upcoming Shares.com, has appointed Peter Hetherington as its new Chief Executive Officer (CEO), succeeding Jonathan Squires, who resigned earlier this year after a phenomenal growth phase.