XTX Markets increases profits to £149.9 million after almost doubling yearly revenue

In its annual financial statement, XTX Markets has shown increases to both its profit and revenue for 2020. Profit increased by £11.2 million from the 2019 figures, rising from £138.7 million to £149.9 million. This comes after the revenue for the company showed a significant increase.

After posting revenue of £339.8 million in 2019, XTX Markets registered £651.9 million revenue in the 2020 financial year. The increase in revenue is much more significant than the profit increase between 2019 and 2020; this is due to the increase in operating expenses for the broker.

Expenses rose from £142.7 million in 2019 to just under £442 million in 2020. This increase of £299.3 million has eaten into the £312.1 million increase in revenue which is why the increase in profits is at a lower level than the revenue. 

XTX Markets has shown increases to both its profit and revenue for 2020

Despite this significant increase in expenses, it is something that XTX Markets expected. As it moved across IP ownership and staff contracts to XTX Markets, this led to the expense increases. XTX Markets also made it clear in its financial statement that it had no contributions to political parties and, as such, had no political expenditure.

The company paid out interim dividends of £174.6 million using retained profits. This is in comparison to the £83.6 million that were paid out in interim dividends in 2019. However, there will be no end-of-year dividends paid out, which is different from 2019, when another £83.6 million in dividends were paid out. Despite the lack of end-of-year dividends, the dividend payout as a whole still compares favourably to 2019. The £174.6 million paid out is above the total £167.2 million paid out in 2019.

After the release of the financial statement for 2020, the XTX Markets board also made comments on the future outlook for the company. 

David Ireland, a director of the board of XTX Markets, said in the strategic report:

David Ireland, XTX Markets

David Ireland
Source: LinkedIn

The Board remains focused on ensuring the business delivers on managing risks, building sustainability and developing an appropriate framework for growth.

Earlier last month, BidFX and XTX Markets revealed the roll-out of XTX Markets Execution Algo on BidFX Algo Hub.

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