Daily Dash: Revolut Revenue Tops $1bn But Higher Costs Wipe Out Profit Margin

January 3, 2024
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Revolut profits have flat-lined despite significant customer growth in 2022, Brits broke a single-day cash withdrawal record just before Christmas, and Affirm has gone live at Walmart self-checkouts.

Revolut Revenue Tops $1bn But Higher Costs Wipe Out Profit Margin

Revolut has published its delayed financial statement for FY2022, revealing a significant growth in revenue but a flat-lining in gross profits.

In 2022, total revenue increased to $1.1bn (£923m), up 45 percent from $786m (£638m) in 2021.

The neobank also gained more than 10m new customers, increased its deposit base by 71 percent and increased the number of customers on paid plans by 55 percent.

However, these gains were cancelled out by large investments in staff, whose total headcount doubled from 3,000 to 6,000.

Revenue from cards and interchange also doubled from £149m to £306m, but overall, gross profit came in at about £6m for the year, down from £26.3m in FY2021.

The big question mark still looming over Revolut’s future growth is its UK banking licence application, which this month enters its third year without an answer.

UK Post Office Breaks Record For Highest Cash Withdrawals In Single Day

The UK Post Office has revealed that December 22, 2023 was a recording-breaking day for personal cash withdrawals, with £62.4m taken out over the counter.

The figure beats the previous record of £51.5m, which was set on December 23, 2023, by more than £10m.

Ross Borkett, head of banking at Post Office, also noted that £3m was deposited and withdrawn at Post Office branches on Christmas Day itself, which was an increase of almost £1m over the previous year.

About 1,500 of the Post Office’s 11,500 branches opened on Christmas Day — a service that Borkett said is “vital” for pub and restaurant owners who need to park their cash earnings ahead of a quieter January.

Affirm Expands BNPL Offering To Self-Checkouts At 4,500 Walmart Stores

Affirm has announced that its buy now, pay later (BNPL) solution can now be accessed at self-checkout kiosks at more than 4,500 Walmart stores in the US.

Previously, under a partnership launched in 2019, Affirm was available at staffed checkouts, online and via the Walmart app.

In Q3 2023, Affirm’s net loss narrowed to $171m, down from $250m in the same period in 2022.

The Nasdaq-listed BNPL has been on a cost-cutting drive for the past year. In February 2023, Affirm announced plans to cut one in five staff, and later that month, it also withdrew from the Australian market.

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