In the recently disclosed financial results, Revolut unveiled a significant loss of £25.4 million for the year. The company attributed this deficit to escalating costs, which rose to £667 million, in addition to a setback of £17 million in the first quarter due to a payments system flaw.
Despite a 45% increase in revenues to £923 million and the addition of over 9.8 million new customers, Revolut’s bottom line was still heavily affected. The company even projected revenues of £1.7 billion for the upcoming year. However, the unresolved matter of not yet obtaining a banking licence remains a point of concern for the fintech firm.
The delay in securing a banking licence in the UK has caused unease among investors and raised uncertainties about the company’s future. It has been nearly 300 days since Revolut anticipated receiving a licence ‘imminently’. The ongoing failure to secure the licence has become a significant setback, with one key supporter expressing impatience.
Revolut’s highest-paid director, believed to be chief executive Nik Storonsky, saw his pay rise to £17.8 million from £10.3 million in 2021, with most of it comprising of share-based payments. The delays in the licence application have led to outbursts from the CEO, who criticized the UK as an undesirable place to conduct business. However, City analysts dismissed his comments as a ‘tantrum’ and ‘sour grapes’.
The company’s financial figures have come under rigorous scrutiny after the auditor, BDO, could not independently verify three-quarters of its £636 million revenue. While issuing a qualified opinion on the latest 2022 accounts, BDO also emphasized that previous issues surrounding Revolut’s controls had been ‘resolved’.
Furthermore, the most recent results were published just before an end-of-year deadline, marking the second consecutive year that Revolut has failed to release its accounts on time. The ongoing uncertainties over the banking licence have also placed pressure on the company’s chairman, Martin Gilbert, who referred to 2022 as “an excellent year for Revolut.”
Despite these setbacks, the company remains steadfast and continues its dedication to obtaining the necessary banking licence. With several financial heavyweights coming on board to bolster its reputation, Revolut is determined to overcome its recent financial challenges.
In conclusion, while Revolut’s financial results demonstrated a substantial loss, the company remains focused on its long-term strategy and growth. The delayed publication of its accounts and the ongoing struggle to obtain a banking licence highlight the obstacles it faces, but the firm is optimistic about its future prospects.
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