Brokerage group eToro held its first quarterly results presentation since going public earlier this year.
The company copied the same format that Robinhood and a couple of other firms have used by doing a livestream presentation that analysts and regular investors could call into to ask questions.
One of the questions asked by an analyst related to the broker’s revenues from CFDs.
Despite the fact that this was the company’s only product for about a decade and is almost certainly its biggest single revenue contributor, eToro continues to be peculiarly cagey about this part of its business.
For example, a search of the broker’s IPO prospectus for CFD – abbreviated or in its full name – does not yield a single result, nor do its first two quarterly results presentations. The broker also tries to artificially inflate its physical crypto income by booking gross fees and then presenting them next to net income from CFDs, ETDs, and cash equities.
Anyway, the analyst on the call asked the broker about the revenue mix that the company currently has for trading revenues derived from CFDs.
eToro presents trading-based revenues as an overall figure, meaning if you buy physical shares from the company and someone else trades a CFD on shares, revenues booked from those transactions will be presented in the same overall figure in the company’s financials reports.
“We don’t break it down really by the nature of the transaction but…more in a broader way of what the asset class is that it’s coming from,” said eToro CFO Meron Shani. “…we are aiming to get to a 20% mark in the 12 – 18 months ahead, so that’s where we’re still aiming to get.”
Will that happen?
Probably not but unless there’s a change to the way results are presented, we also won’t find out.
