Exclusive: OANDA Europe revenues dive 42% in 2021 to £16.9 million
FNG Exclusive… FNG has learned via regulatory filings that OANDA Europe Limited, the London based, FCA regulated arm of Canada based Retail FX brokerage group OANDA, saw a 42% decline in revenue in 2021, as the company operated at near breakeven.
OANDA Europe revenues came in at £16.9 million in 2021, versus £29.3 million in 2020. Net profit for 2021 was £351,894, versus £4.6 million the previous year.
Client funds fell by 9% during the year. At 31 December 2021, amounts held by the firm on behalf of clients amounted to £34,567,573 (2020: £38,051,512).
The decline in activity at OANDA Europe should not come as too much of a surprise to FNG readers, as OANDA Europe saw the departure of several of its key executives during 2021, including OANDA UK CEO David Hodge who moved to become CMO of Skilling, and longtime CMO Chantelle Johnson who left for Equiti Group.
OANDA Europe reported that it experienced exceptional performance during the early part of 2020 when the global financial markets experienced heightened volatility driven primarily by the Covid 19 pandemic. This, coupled with investment in marketing and improvements to its product offer, led to a rise in new customers, higher levels of reactivation of dormant clients and increased trading activity from existing clients; leading to a significant increase in trading revenue for the comparative period (2019).
The company, however, did not experience a repeat of this performance in 2021 due to lower volatility and clients had less market opportunities which led to lower volume of transactions. OANDA Europe’s performance in 2021 was well ahead of pre-pandemic levels (2019 results) as the company continues to invest in marketing, customer service and relationship management.
OANDA is controlled by private equity investment firm CVC Capital Partners.
OANDA Europe’s 2021 income statement and balance sheet follow: