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Wednesday, October 23, 2019

News > Fintech

Revolut reports £32.8m loss despite 354% increase in revenues

Theo Osborn | 12:42 Wednesday 2nd October 2019

Revolut has reported a 354% increase in revenues to £58.2m for the year ending 31st December 2018.

Despite this, the mobile bank witnessed a £32.8m post-tax loss for the year, an increase on the £14.8m loss in 2017.

It claimed this was driven by continued investment in its products and services.

Revolut believes that its 2019 revenue growth will be three times greater than it was in 2018, with more than seven million customers now using the platform.

Nik Storonsky, CEO at Revolut (pictured above), said: “The end of 2018 feels like a long time ago, but these figures are an important stepping stone in our sustained growth as a business.

“The leap forward in revenue, and customer numbers, since the beginning of 2019, shows that the reason we started this business continues to be vindicated: to meet major untapped need to solve the problems so many of us have with money management.

“We are very proud of the uptake so far and it’s great to see so many of our customers using us for their everyday banking needs.

“2019 is set to be another year delivering record growth, but our work is not done, and we are determined to reach all those who need us.

“This means maintaining our ambitious growth and expansion plans, which are now fuelled by substantial improvements to our profitability, and the key appointments we’ve been making.”

Card scheme costs, acquiring costs and user acquisition costs were cited as the main costs of the business.

However, the mobile bank claimed that cost efficiencies have been achieved across the business due to the increase in its customer base and transaction volumes.

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