The eToro Group Ltd is a social investment platform that works with different assets to create an international investor community. On August 25th eToro announced their second earnings of 2021 which showed a continued growth trend.
At the end of the second quarter on June 30th, eToro had been able to acquire nearly 2.6 million new investors. This is a 121% year-on-year rise compared to the second quarter of 2020. eToro’s total business commissions for the second quarter of 2021 was $362 million, this again is a 125% YoY increase compared to the Q2 of 2020.
The net trading income for eToro in Q2 of 2021 was $291 million, a 136% rise compared to the Q2 of 2020. At the end of the second quarter of 2021 in June, eToro had $9.4 billion worth of assets under its administration.
CEO cum co-founder of eToro, Yoni Assia, also mentioned that the company is showing momentum in growth According to Assia, eToro’s future growth strategy will be oriented towards fulfilling three types of client needs:
- Accessibility to investment in different kinds of platforms, including crypto investments
- A phone-compatible UI design that can be used intuitively
- Expert financial guidance and access to insights of other investors
Assia believes that eToro will be able to attract more investors in the future by providing solutions for all these needs on one single platform.
In the last few months, eToro has been working to realize these goals. It has already added ten new crypto-related assets to its multi-asset portfolio. Popular cryptos like Dogecoin, Shiba Inu, etc have been added. ETH 2.0 staking service has also been launched to attract more crypto-investors.
eToro has also started a free financial education resource bank called the eToro Academy with different levels of knowledge resources to cater to its different categories of investors.
eToro has also been working simultaneously to improve its social brand value by sponsoring different sports teams. At present, eToro sponsors 25 different football teams, including some teams of the EPL and the Bundesliga.
The eToro Americas division has also been growing. In Q2 of 2021, it accounted for 12% of all the accounts funded by eToro, while the figure had been just 6% in Q2 of 2020. eToro Americas had till now been limited only to copy trading and crypto investments, but stock trading will be introduced by the end of this year.
Q2 of 2021 was a major year for crypto-assets on eToro and the majority of its commissions came from BTC, XRP, DOGE, ETH, ADA. But when the Covid-19 pandemic hit, eToro’s net income dropped to a negative $89 million. However, this was mainly due to a non-charge of $71 million stock compensation for the eToro workforce and around $36 million was the cost of merging operations with FTCV. Adjusted EBITDA for eToro Q2 ended at $33 million. eToro’s diversity of assets was able to make it through the Covid-19 precipitated crisis as there was a resurgence in the crypto market. Now eToro believes that their strong Q2 performance will enable them to match their 2021 annual forecast. Q3 will prove whether eToro will be able to maintain its upwards growing momentum and remain a top forex crypto broker.
