Social investment network eToro reports year-over-year growth in total commissions
eToro Group, a multi-asset investment platform that empowers people to grow their knowledge and wealth as part of a global community of successful investors, has announced its first quarter 2021 interim financial results, which show 3.1 million of new registered users, up 214 per cent compared to Q1 2020, plus total commissions of USD347 million, up 141 per cent compared with Q1 2020.
In addition, net trading income totalled USD269 million, up 72 per cent compared with Q1 2020, while assets under administration at 31 March were USD8.4 billion.
“One of the key stories of 2020 was the rise in retail participation in capital markets driven by low interest rates, increased digital adoption and widespread coverage of stimulus efforts and market volatility. This trend has accelerated in 2021 and is reflected in our very strong results for the first quarter,” says Yoni Assia, Co-Founder and CEO of eToro.
Shalom Berkovitz, CFO and Deputy CEO, says: “3.1 million new registered users joined the eToro platform this quarter, a 214 per cent increase compared to the same period last year. This increase in users and an increase in trading activity resulted in total commissions of USD347 million in the first quarter of 2021, up 141 per cent from the first quarter of 2020. Total commissions are comprised of commissions from trading activity, interest and other charges. They are a key performance indicator for eToro.”
Assia adds: “As a multi-asset investment platform, eToro offers clients a choice of which asset classes to invest in from commission free stocks through to crypto, and a choice in how to invest. You can trade directly yourself, copy another investor or invest in any of eToro’s portfolios. eToro is built around social collaboration and financial education and has created a thriving community where users can connect, share, and learn.
“eToro’s mission is to empower people to grow their knowledge and wealth and we see our platform as a bridge between the old world of investing and the new. As we grow our presence worldwide and further diversify our product offering, eToro is well positioned to capture a large share of a growing global market.”
Shalom Berkovitz says: “eToro’s focus is on growth rather than short term profitability. We are therefore investing heavily in scaling our business and income is being reinvested in our marketing channels and in the continued expansion of our product offering and global footprint. Year-over-year comparisons in net income and Adjusted EBITDA were therefore impacted by stepped up marketing spend, which has a high return on investment. Adjusted EBITDA was USD30 million