Admirals Faces Client Exodus as Trading Activity Declines

Admirals Faces Client Exodus as trading volumes shrink, revenue declines, market struggles persist, and active traders disappear. Admirals Group AS posted a net loss of 1.6 million euros for the fiscal year 2024, marking a notable improvement from the 9.7 million euro loss recorded in 2023. However, the company struggled with a sharp decline in trading activity, as its number of active clients plunged by 52% to 43,332.

Net trading income for the year amounted to 38.4 million euros, reflecting a 6% decline from 40.9 million euros in 2023. Additionally, the total value of trades conducted on Admirals’ platforms dropped by 42% year-on-year to 510 billion euros.

Despite these challenges, Admirals Group AS managed to cut operating expenses by 16%, bringing them down to 42.4 million euros. This reduction was largely attributed to cost-cutting measures in personnel, marketing, and outsourced services.

“In 2024, Commodity CFDs products accounted for 29% of total gross trading income, an increase of 4% year-on-year. Indices CFDs accounted for 45% of total gross trading income, an increase of 4% year-on-year,” the company stated. “Forex accounted for 25% of total gross trading income, a decrease of 8% year-on-year. Forex decreased mainly due to an increase in commodities and Indices CFDs.”

Admirals Faces Client Exodus Following Sharp Revenue Drop

The company reported an EBITDA of 0.9 million euros, a significant turnaround from the negative 6.5 million euros in 2023. The EBITDA margin also returned to positive territory at 2%, compared to -16% the previous year.

Admirals Group AS maintained a strong financial position, with shareholders’ equity amounting to 69.3 million euros. The company’s total assets stood at 79.8 million euros, with 76% comprising balances due from credit institutions and investment firms.

As part of its strategic realignment, Admirals Group AS divested its wholly-owned subsidiary, Admirals AU PTY Ltd (Australia), to an unrelated third party in 2024. Additionally, it sold its 62% stake in AMTS Solutions OÜ.

Client Base Shrinks Rapidly

One of the most concerning aspects of the report was the substantial decline in active clients, accounts, and new applications. The number of active traders plummeted by over 50% in 2024, dropping from nearly 90,000 in 2023 to 43,000. Similarly, active accounts saw a 43% decline over the same period.

New account applications fell sharply by 64%, decreasing from 267,000 to just under 96,000. Meanwhile, client assets dropped 8% year-on-year to 91.3 million euros.

Despite these setbacks, Admirals Group AS maintained a strong capital position, boasting a capital adequacy level of 259% as of December 31, 2024, well above regulatory requirements.

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