Revolut Achieves First Annual Profit in 2021

Revolut's Financial Milestone

Revolut, the British-Lithuanian financial technology company, reported its first annual profit in 2021. This significant achievement marks a net profit of 26 million pounds compared to a substantial loss of 223 million pounds in the previous year. The company’s revenues surged, tripling to nearly 636 million pounds.

Growth Amidst Challenges

Despite facing a challenging crypto winter that affected the fintech industry, Revolut's performance remained robust. A notable portion of their revenue—about one-third—came from their cryptocurrency trading business. The company's success was further bolstered by a shift towards digital services and remote working, increasing customer engagement and app usage.

Overcoming Economic Hurdles

Revolut's Chief Executive, Nik Storonsky, highlighted the company's journey from pandemic-induced losses to profitability. The global lockdowns and travel bans posed significant challenges, but also accelerated the shift to digital platforms, which benefitted Revolut. The company's ability to adapt and overcome these obstacles played a crucial role in its financial success.

Enhancing Financial Systems

Chief Financial Officer Mikko Salovaara emphasized the company's strong momentum and the necessity of updating their accounting systems. Previously deemed inadequate by the Financial Reporting Council, these systems were reformed to meet the highest accounting standards. This overhaul was essential for adhering to regulatory requirements and supporting Revolut's growth trajectory.

Revolut's achievement of its first annual profit underscores its resilience and adaptability in a rapidly changing financial landscape, paving the way for future growth and innovation in the fintech sector.