FTMO, the prop trading firm that recently acquired OANDA, had over CZK 1.94 billion (over USD 81.5 million) in cash at the end of 2023, a jump of about 275 per cent compared to the previous year.
Generating Strong Revenue and Profits
Earlier, Finance Magnates reported that the prop trading giant generated almost CZK 5 billion (over $213 million) in revenue in 2023, a 20 per cent increase. Its EBITDA for the year also reached nearly $100 million.
According to the company’s 2023 annual report, recently reviewed by Finance Magnates, it ended the year with a pre-tax profit of CZK 2.37 billion (about USD 98 million), over 31 per cent higher than the previous year’s CZK 1.8 billion (about USD 74.5 million). After taxes, the company's net profit came down to CZK 1.92 billion (over USD 79.3 million).
Buying OANDA
FTMO recently came to light as it acquired OANDA, an established forex and contracts for differences (CFDs) broker, from CVC Asia Fund. The prop firm’s intention to enter the brokerage space had already come to light, as it opened a brokerage unit and hired Michael Kamerman to head that division. Later, it also onboarded Riana Chaili as the brokerage division’s Chief Operating Officer.
The prop giant did not disclose the financials involved in the OANDA acquisition deal. However, Finance Magnates earlier reported that CVC acquired OANDA in 2018 at a valuation of about $162.5 million.
The official announcement also did not mention if FTMO is acquiring OANDA in a cash deal or if there is another arrangement. However, the balance sheet of the prop firm shows that it has a strong cash reserve.
Meanwhile, FTMO is not the only company in the trading space with a massive cash reserve. London’s IG Group recently acquired Freetrade in a £160 million cash deal. IG Group still has a cash pile, part of which it is distributing to its shareholders in the form of dividends and buybacks. Plus500 is another CFDs broker with $950 million in cash balance.
