FinTech: Revolut Reports Better Margins But A Higher Total Loss For 2020

June 22, 2021 | FinTech, News

At the operating level, losses rose to £201 million from £107 million in 2019.

Revolut, the London-based challenger bank led by Nikolay Storonsky, announced its numbers for the year ended December 31, 2020 on Monday. Though the financial superapp reported strong growth on various metrics including customer base, gross margins and revenue, it incurred a total loss of £168 million for the year, up 57% from 2019. (Revolut)

Revolut 2020: Key numbers and change over 2019

Adjusted revenue            £261 million       +57%

Administrative exp          £266 million       +114%

[incl Staff costs                  £170 million        +187%]

Gross profit                        £123 million        +215%

Gross margin                      49%                        +24pp

Operating loss                   £201 million        +88%

Total comp. loss                £168 million        +57%

Customer balances          £4.6 billion          +57%

Personal customers        14.5 million         +45%

“While we controlled discretionary spending, administrative costs increased to £266m (2019, £125m), reflecting continuing investment in growth and capability throughout the business, including in our Risk, Compliance and Control functions,” Revolut said in a statement.

The company said it managed growth in its customer base and added 500K business customers despite a restriction on marketing spend during the pandemic.

“As the extraordinary circumstances of 2020 drove the trend towards digital financial management we continued to innovate for customers to make their financial lives easier and accelerate daily use,” said founder & CEO Storonsky.  “We launched 24 new retail and business products, expanded into the US, Japan and Australia and launched banking services in Lithuania, all while significantly improving our profitability.”

Q1 of 2021

According to Chief Financial Officer, Mikko Salovaara, revenue in the first quarter of 2021 jumped 130% over the same quarter last year, with the number of personal customers at quarter-end totalling 15.5 million.

“Gross profit grew by more than 300% vs Q1 2020, with meaningful gross margin expansion driven by our product mix and continued ownership mentality on cost control,” he added.

Related Story:  Revolut Prepping For India Launch; Hires Country Lead

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
FinTech: India’s PayTM Gets Heat From Proxy Advisory Firm
August 12, 2022     FinTech, News

Proxy advisory firm Institutional Investor Advisory Services India Ltd. (IiAS) has issued a note ahead of PayTM’s (NSE: PAYTM) annual shareholders’ meeting on August 19 calling for the replacement of…
Venture Capital: Lockheed’s Venture Arm To Boost Investment In Space Startups
August 12, 2022     News, Venture Capital

Lockheed Martin (NYSE: LMT) and its venture finance arm Lockheed Martin Ventures plans to boost the latter’s investment outlay from $200 million to $400 million.
Digital Assets: Brazilian Fintech PicPay Launches Crypto Exchange With Paxos

PicPay, the well-known Brazilian payment app, has got its shoe in the crypto door in partnership with Paxos, a leading regulated blockchain infrastructure company. Picpay is opening crypto trading services…
FinTech: Telecom Behemoth BT Adds Barclaycard Payments To Partnership Network For Micro-Businesses
August 12, 2022     FinTech, News

BT (LON: BT.A), the telecom major, announced that Barclaycard Payments had joined its partnership network seeking to help the growth of UK microbusinesses. BT customers with 0-5 employees would get…