FxPro, a retail broker, released its financial report for 2017 this Tuesday. The UK broker, famous for its sponsorship of Watford Football Club, reported impressive year on year growth in revenue and profit.
Today’s report shows that, at the end of 2017, FxPro had managed to reach total revenue of £4.42 million ($5.93 million). This represented a 36 percent year on year increase on 2016 when the firm finished the year with £3.24 million ($4.34 million) in revenue.
As a result of higher revenue, FxPro was able to attain increased levels of profit. In 2016, the firm reported operating profit of £1.32 million ($1.77 million). Last year, the firm was able to increase that figure to £1.88 million ($2.52 million) – a 42 percent increase.
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This growth was especially impressive as the firm’s expenses increased by almost £400,000 from 2016. The firm spent £1.74 ($2.33 million) on administrative costs last year, equivalent to a 27 percent increase. These costs increased largely as a result of increased rent and a higher payroll.
Unsurprisingly, profits after tax also grew substantially in 2017. The firm was able to make £1.48 million ($1.98 million) in profit last year. This was a 38 percent increase on the previous year when the firm made £1.07 million ($1.43 million) in profit.
FxPro’s growth was particularly impressive as it was not driven by a spike in cryptocurrency trading. Other firms saw a massive, but likely short-lived, increase in their number of new accounts and trading activity towards the end of 2017 as a result of the cryptocurrency boom.
As FxPro does not enable its users to trade in a huge number of crypto products, nor does it market itself as a crypto-focused firm, it seems unlikely that its increase in trading volume for 2017 was the reason for its growth. The most plausible explanation seems to be that the firm upped its spread-betting offering in the middle of the year and this, combined with normal growth, drove an increase in trading and new users.