eToro released its financial results for the year 2023, highlighting a
mixed performance during this period. Net income dropped by a double-digit
following a decline in trading commission, which forms a larger part of the
company’s revenues.

“2023 saw a gradual thawing of financial markets following almost a year
of bear territory, allowing many retail investors to reverse losses from 2022
and get their portfolios back on track,” eToro highlighted in the financial
report filed with Companies House Services.

“However, whilst last year was a big improvement on its predecessor,
aside from the gargantuan AI-fuelled performance of bug US tech stocks,
particularly the so-called “Magnificent 7”, it was a case of slow and steady
for markets grappling with higher interest rates and other economic headwinds.”

Economic Headwinds

eToro’s net income dropped 14% year over year to $125,736,161, following
a 19% decline in trading commissions to $106,021,023. Although the trading
costs nearly doubled in the period, the company managed to reduce administrative expenses by 10%.
Overall, the total comprehensive income decreased by 28% to $2,471,265.

eToro generated total commissions of nearly $630 million in 2023 and more
than $100 million in EBITDA. The group also expanded its offerings, including launching ISA products in the UK, proxy voting,
and extended-hours trading products. Additionally, the company reportedly
enabled UK clients to trade assets from the GBP eToro Money account.

Total Assets

Notable, eToro increased its total assets by 41% year over year, from
$42,439,176 to $67,346,461, and ended the year with more than 35 million
registered users globally and 3 million funded accounts (which increased by
5%).

“Towards the end of the year, we also saw bitcoin start to rally ahead of
January’s approval of a spot Bitcoin ETF,” the company noted. “This momentum has
continued into 2024 as a multi-asset investing platform; eToro has been well
positioned for the crypto comeback, providing users with straightforward access
to crypto alongside a wide range of other asset classes.”

Last month, eToro acquired the Australian investing app
Spaceship for $55 million. This move aims to boost the Israel-based
company’s position in the savings sector and focus on more passive, long-term
investments. Spaceship has more than 200,000 clients and manages more than $1
billion worth of assets.

This article was written by Jared Kirui at www.financemagnates.com.

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