Brokerage group eToro released a report earlier this week as part of its plans to go public later this year.
That report actually contained a few fun bits of hidden information and, although there were some regular headline points that you may have seen elsewhere, I thought it would be fun to look at a few of the more ‘niche’ areas of the business.
Let’s go
- eToro is getting a license in Singapore
Singapore has become a popular hub for brokers to expand over the last five to ten years.
IG Group, CMC Markets, and Plus500, for example, have all acquired a license in the city state and started to expand there.
eToro is doing the same.
The company said in the report that it has received In Principle Approval for a license from the Monetary Authority of Singapore that it will ‘activate’ later this year.
Last year 16% of the company’s revenues are from the Asia-Pacific region, but the likelihood is that it is largely derived from Australia.
That brings us on to our next point.
- eToro made 70% of its revenues from Europe
Despite taking several potshots at the UK – a common hobby these days – eToro continues to generate the overwhelming majority of its revenues from the UK and European markets.
Fully 70% of the company’s revenues were derived from Europe in 2024. You can see the full figures in the chart below, which is taken from the report.
eToro also stated elsewhere that its main markets today are the UK, Germany, France, Spain, Italy, Australia and the United Arab Emirates.
eToro also stated elsewhere that its main markets today are the UK, Germany, France, Spain, Italy, Australia and the United Arab Emirates.
- CEO Yoni Assia made over $10m from share sales in 2023
Another interesting part of the report detailed some of the financials of a 2023 share sale.
Several board members and executives sold off to private equity firm Andalusian and trading technology company ION.
In that sale, eToro Co-Founder and CEO Yoni Assia sold off shares worth just shy of $10.9m.
His brother Ronen, who is also a Co-Founder, sold shares to Andalusian. The total value was north of $12.0m.
- eToro lost almost $140m on crypto CFDs in Q4 2024
Last year eToro saw a net loss of $130.7m from crypto CFDs, up from $63.1m in 2023. However, the company made $218.5m from the product in 2022.
The most striking part of the report in this regard was a quarterly analysis of company P&L from crypto CFDs.
The primary reason for the loss last year was the final quarter of the year. In the final three months of 2024, net losses from crypto CFDs were $130.5m.
What likely happened is that clients all started taking long positions in bitcoin and the company was left taking the other side in a rising market.
- eToro spent $43.3 million on payment processing last year
Our final informational tidbit is around payments.
Last year eToro spent $43.3m on payment processing fees, up from $35.4m in 2023.
Revenues at the company totalled $824m last year.
The result?
More than 5% of eToro’s total revenues were then spent on payment processing fees!