Exness UK Reports Weak Revenues for 2019 Amid Shift to B2B Business

Exness (UK) Ltd, the UK arm of multi-regulated FX broker Exness, today unveiled its financial results for the fiscal year ending December 31, 2019, which were characterized by lagging metrics in areas ranging from operating income to revenues.

In terms of the aggregated financial results, by the end of December 2019, Exness UK put together a weak YoY performance relative to previous years, according to its latest filing with the UK’s Companies House.

As for its operating income, Exness UK witnessed a deterioration across its bottom-line metrics, having yielded a loss of $1.09 million (£840,516) compared to an operating loss of £774,743 for the fiscal year ending December 31, 2018.

Exness UK’s operating revenues came in at only $35,865 (£27,649). However, the gross profit, before deducting the staff salaries and other administrative expenses, improved to £16,310 from -£15,585 in 2018.

Meanwhile, administrative expenses rose 13 percent year-on-year, despite the weak revenues, coming in at $1.11 million (£856,826) relative to £759,158 the year prior.

Turning to B2B business in the works

The lackluster results come as Exness, which is authorised by the FCA as a IFPRU €730K firm, continues to restructure its business.

Exness acquired its FCA license back in 2016 to operate a foreign exchange and CFDs brokerage business. After one year, the company launched an institutional offering, which is focused on providing institutional liquidity for FX, CFDs, metals, and commodities. In light of an internal business decision to focus on other markets and grow their B2B operations, Exness decided in 2019 to close retail business in EU/EEA including the UK.

At the time, Exness and other retails brokers said that one of the reasons for the launch of the institutional business arm of the company is the recent changes in the regulatory environment. Indeed, the retail FX market in Europe is becoming relatively unattractive for the brokers, which is why many brokers are looking into new opportunities in the wholesale liquidity and clearing market.

To fund the transformation process on a large scale, the owners of Exness injected capital of £2 million in May 2019.