XTX Markets' global UK subsidiaries have published their 2023 financial results, revealing their profits fell by double digits. Despite this, the company's management views the results positively, noting that 2022 was an exceptionally strong financial year.
Net revenues and profits at XTX Markets UK fell sharply
According to the report published this week, XTX Holdings (UK) Limited, which includes two trading companies, XTX Markets Limited and .
The decline in net profit was even more pronounced, shrinking by 56% from £19.2m in 2022 to £8.4m last year. However, the company's management considers these results satisfactory.
“The directors are of the view that the underlying performance of the company has met expectations, taking into account the strong performance in 2022 driven by favorable conditions in several key markets,” the XTX Holding (UK) Limited report said. “Profit after tax for the year was £8 million, giving a profit after tax margin for the year of 1%.”
However, these are not all subsidiaries that represent XTX's UK operations. There is also a third company, XTX Markets Technologies Limited, which generates most of the company's revenues and profits in the region. In her case, there was also a noticeable decline. Net revenues fell from £1.51 billion to £1.35 billion, a decline of more than 13%. Meanwhile, net profit fell by 23%, from £1.08bn to £826.9m.
For all UK entities combined, XTX Markets Limited, XTX Markets Trading Limited and XTX Markets Technologies Limited, total net revenue was just over £2 billion, with a net profit of US$835.4 million. This means that compared to the record results achieved in 2022, revenues shrank by 20%, and net profit fell by about 24%.
What's new in XTX?
In April, the company revealed its intention to build a large data center in Finland. By establishing its own data center, XTX Markets aims to maintain greater control over its technological infrastructure and ensure the highest levels of security and performance.
At the same time, the company launched XTX Labs, a dedicated division focused on developing machine learning-driven algorithmic trading research. The newly introduced AI Residency Program, led by XTX Labs, delves into the intersection between finance and machine learning.
However, the company has also taken a proactive stance against the growing threat of financial fraud. In March, XTX Markets warned the public about fraudulent schemes that falsely claim to be associated with its brand. The company has noticed an alarming increase in foreign exchange (FX) and counterfeit cryptocurrency scams committed by websites, individuals and entities attempting to exploit the trust and reputation of XTX Markets.
This article was written by Damian Schmil at www.financemagnates.com.
