LMAX Group, the independent operator of institutional execution venues for FX and crypto currency trading, reported record profitability and financial performance for the year ended 31 December 2019.
2019 financial highlights include:
- Gross Revenues of US$59.6m, up 19% from 2018
- Gross Profit of US$56.3m, up 27% from 2018
- Statutory EBITDA of US$26.2m, up 30% from 2018
- Operating Profit of US$18.6m, up 45% from 2018
- EBITDA margin of 47%
- Total FX trading volume across exchanges of US$3.5 trillion, up 15% from 2018
- Total spot crypto currency volume of $53 billion, up 14x from 2018
Three-year compound annual growth rates delivered:
- 26% growth in Gross Profit
- 47% growth in Statutory EBITDA
- 83% growth in Operating Profit
Growth in the institutional client base and its further diversification drove significant increase in revenues and volumes:
- Institutional segment: revenues up 86% and volumes up 20%
- Investment manager segment (trading via bank algos): revenues and volumes have doubled
- Funds segment: revenues up 100%, volumes up 30%
- Retail broker segment: revenues up 23%
Commenting on 2019 performance, David Mercer, CEO of LMAX Group, said:
During a period of consistent low level of volatility in 2019, where volumes at most major venues have declined and margins have contracted for monoline institutional transactional businesses, we have delivered strong growth in both volumes and revenues while continuing to invest in our global distribution, market leading technology and best-in-class service for our clients.
We view this as a vote of confidence in our award-winning, robust proprietary technology and our ability to consistently deliver efficient market structure and transparent, precise, consistent execution – which has set us apart from the competition over a number of years.
2019 was the year that LMAX Group demonstrated the value and resilience of our distinctive ‘all market access’ business model. Access to 100% of the FX market doesn’t just differentiate our business proposition, it’s a source of diversified and consistent revenue streams. A diversified revenue mix ensures the resilience of our financial performance in all market cycles.
LeapRate reminds that the Group acquired a CySec regulated broker in Cyprus last year. The company’s sixth exchange, LMAX Digital, has captured over 20% of the global market and delivered 81% quarter-on-quarter revenue growth since launch.
Commenting on the Group’s future plans, David Mercer continued:
We are extremely excited for the year ahead and expect our core FX business to continue its growth trajectory, reflecting the increasing demand from all client segments for firm limit-order liquidity and transparent, precise, consistent execution. We are entirely focused on our mission to build the leading global electronic FX and crypto trading businesses.
We see further opportunities to continue leveraging our technology to launch new exchanges, whether it’s setting up more FX matching engines globally or building exchange infrastructure for trading other asset classes, just like we did with LMAX Digital.
Another strategic growth area for us is to capitalise on the potential of our market data offering. Our ability to gather firm liquidity market data from all client segments, often not accessible through primary venues, puts us in a differentiated and advantageous position compared to other players. This will be a key growth story for us in the next decade.