Annual Financial Report
Admiral Markets AS Audited Annual Report 2019
Admiral Markets AS achieved a record number of new clients
For Admiral Markets, 2019 was another successful year. The group's market share and customer base grew faster than market expectations.
Despite low volatility in global markets, Admiral Markets AS managed to maintain its net trading income at the previous year's level in 2019. In 2019, the company's net trading income was EUR 23.2 million, compared to EUR 24.2 million in the previous year. The company's net profit for 2019 was EUR 4.6 million, which is 51% less than a year earlier (2018: EUR 9.5 million). The profit margin of the company declined to 20% from 39% last year. The decline in profit margin was attributable to higher operating expenses as there was an increase in personnel, marketing and IT costs. The increase in IT-related costs includes large-scale investments aimed at developing the company’s product and trading platforms. The increase in marketing expenses resulted in a significant increase in active customers. The increase in personnel-related expenses was due to the recruitment of employees that would empower the company to be able to serve more clients.
The parent company of Admiral Markets AS, Admiral Markets Group AS, was able to increase its consolidated net trading income compared to 2018. It was EUR 32.6 million in 2018, when in 2019 it was 3% higher, reaching EUR 33.5 million. Despite the increase in operating costs, the consolidated profit of the group was EUR 5.2 million. Customers of Admiral Markets carried out more than 31.8 million trading transactions in 2019, and the value of trades increased by 3% to EUR 590 billion. By the end of December 2019, Admiral Markets Group AS had approximately 14,800 active clients per month. Compared to the same period in 2018, when the corresponding figure was close to 10,500. The active clients’ assets increased by 45% and the total number of registered clients grew by more than 20%.
“The key words describing 2019 are new markets, a strong team and investments in innovation and IT solutions,” said Sergei Bogatenkov, CEO of Admiral Markets AS. "Large-scale technological developments have enabled us to provide our customers an even higher quality at participating in international financial markets and more personalized customer interaction," added Sergei Bogatenkov. “We opened our business to regions in Africa, Asia and Canada, where we want to further expand our presence in the coming years. It is great recognition for the company and our employees that our performance is valued and noticed. For the first time, we reached the top ten of the Enterprise Estonia Enterprise Awards in the Exporter Award of the Year and won all industry-specific awards in Germany, proving that we continue to be quality leader in our field,” said Sergei Bogatenkov, CEO of Admiral Markets AS.
According to Bogatenkov, Admiral Markets carried out a brainstorming session last year on how the company could implement greener technologies and solutions to reduce its environmental footprint. Also, Admiral Markets was one of the main driving forces behind the SOS Children's Village social campaign #OlemeKoos.
In 2020, Admiral Markets will continue to implement its vision for 2030 and introduce a new groundbreaking IT solution that will open up financial services to potential customers.
Statement of Financial Position
|(in thousands of euros)||31.12.2019 ||31.12.2018|
|Assets|| || |
|Due from credit institutions||19,757||15,467|
|Due from investment companies||6,786||6,738|
|Financial assets at fair value through profit or loss||9,759||11,047|
|Loans and receivables||3,983||3,044|
| || || |
|Liabilities|| || |
|Financial liabilities at fair value through profit or loss||66||176|
|Liabilities and prepayments||2,349||1,843|
|Lease liabilities||4,145||0 |
|Subordinated debt securities||1,827||1,827|
| || || |
|Equity|| || |
|Statutory reserve capital||259||259|
| || || |
|Total liabilities and equity||47,169||39,414|
| || || |
| || || |
| || || |
Statement of Comprehensive Income
|(in thousands of euros)||2019 ||2018|
|Net gains from trading of financial assets at fair value through profit or loss with clients and liquidity providers||34,838||34,081|
|Brokerage fee income||71||85|
|Brokerage and commission fee expense||-11,708||-9,960|
|Other trading activity related income||31||74|
|Other trading activity related expense||-22||-44|
|Net income from trading||23,210||24,236|
|Interest income calculated using the effective interest method||75||67|
|Interest income similar to interest||183||99|
|Net gains on exchange rate changes||266||380|
|Net gains at fair value through profit or loss ||50||0|
|Depreciation of tangible and intangible assets||-526||-283|
|Depreciation of right-of-use assets||-420||0|
|Profit before income tax||4,915||9,804|
|Profit for the reporting period||4,604||9,470|
|Total comprehensive income for the reporting period||4,604||9,470|
|Basic and diluted earnings per share||11.40|| |
The reports of Admiral Markets AS are available on the following website: https://admiralmarketsgroup.com/en/admiral-markets-as/reports/.
Under the international financial services trademark of Admiral Markets, customers are offered Forex and leveraged Contract for Difference (CFD) web-based trading service in the over-the-counter market as well as listed instruments. Since the foundation in 2001, Admiral Markets has continually expanded its reach, and today it services worldwide through regulated trading companies.
Investment company Admiral Markets AS, established in Estonia, is a branch of Admiral Markets Group AS, which has the right to provide investment services under the operating license of the Estonian Financial Supervision Authority in the European Union and the European Economic Area countries. Admiral Markets Group AS is physically represented in 18 countries through its regulated trading companies with a customer portfolio covering over 130 countries.
Communication manager of Admiral Markets AS
+372 53 413 764