Fintech company Revolut made its first full-year profit in 2021 and registered a 33 per cent revenue jump last year, its finance chief told Reuters news agency.
Revenues at the company increased to more than £850 million (€965 million) in 2022 on the back of payments, subscriptions and business accounts, said chief financial officer, Mikko Salovaara, despite a downturn in crypto, which is a key part of the group’s business.
“We have built a strong momentum,” the 31-year-old executive said in an interview at Revolut’s headquarters in London.
The company has just signed off on the 2021 annual accounts after months of delays as it replaced its internal accounting systems after the Financial Reporting Council (FRC), a UK body responsible for regulating auditors, found Revolut’s audit “inadequate.”
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“Our accounting systems needed replacement,” Mr Salovaara said. “We were held to the highest possible accounting standards.”
Revolut will retain accounting firm BDO for the 2022 audit, it said.
Revenues from its crypto business shrank in 2022 as the crypto-downturn hit the firm. The crypto business accounted for about 5-10 per cent of the total income last year, Mr Salovaara said.
The company swung to a profit of £26 million in 2021 helped by the boom in cryptocurrencies trading, its accounts show.
Chief executive officer Nikolay Storonsky has previously said the firm was profitable in 2021. In 2020, it made a loss of £223 million pounds, according to Revolut’s accounts.
Mr Salovaara declined to say whether the company will be profitable in 2022. The company has struck two of its Irish entities off the register of companies after dropping plans to use an Irish e-money licence issued by the Central Bank of Ireland.
The fintech applied to the Companies Registration Office (CRO) last November to have two companies — Revolut Payments Ireland and Revolut Holdings Europe — struck off the register “on the grounds that they had ceased to carry on business”, according to filings. Both entities were formally struck off this week.
The company expects to publish its 2022 accounts by June, but it might take longer.
Revolut was valued at around $33 billion in the last funding round in 2021, making it then Britain’s most valuable start-up. Since its 2015 debut, it has raised about $1.7 billion from SoftBank and others.
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Mr Salovaara, who joined Revolut in 2021 from investment firm 3G Capital, said that the company does not plan to fundraise soon.
“We are self-sustained,” he said. The firm will “eventually be a public listed business, but it’s not a priority”.
Publication of the accounts might pave the way for a UK banking license which Revolut applied for two years ago.
“We are at the very final stage of the process,” the CFO said adding that the relationships with the UK regulators have been “reasonable”.
Revolut is likely to opt for an “authorisation with restriction”, a person close to the matter told Reuters in January. This imposes certain limits on the business.
Revolut’s total staff costs increased by 9 per cent in 2021, the filings show. The number of employees doubled in 2022 to more than 6,000, the company said.
It aims to expand internationally, including in India where it acquired a foreign-exchange firm Arvog Forex, as well as in Brasil and Mexico. It will launch in New Zealand in the coming weeks. - Reuters
