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Revolut
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== Revenue breakdown<ref name=":0" /> == '''Revenue Streams Analysis:''' The company's financial report showcases diverse revenue sources, each governed by specific recognition criteria as outlined in its accounting policies. The process of consolidation integrates subsidiary financial statements into the Group's consolidated financial statements up to defined dates. This consolidation eliminates inter-company transactions, balances, and unrealized gains, maintaining uniformity in applying group accounting policies to all entities and transactions. '''Foreign Currency Translation:''' Foreign currency translation involves converting foreign currency monetary items at closing rates and non-monetary items at historical or fair value exchange rates. '''Revenues:''' # '''Card and Interchange Fees:''' This category encompasses transaction-related fees like interchange fees from card issuing partners, merchant acquiring fees, cash withdrawal fees, and top-up fees. Revenue recognition occurs upon the completion of card transactions, representing a single performance obligation. # '''Subscription Fees:''' Subscription revenue includes fees charged to both retail and business customers for monthly and annual subscriptions. The performance obligations within this category involve card delivery and payment processing services. Revenue for card delivery is recognized upon order placement, while subscription service revenue is acknowledged monthly. # '''Foreign Exchange Fees:''' This section includes mark-up fees on market exchange rates and fair usage fees for additional exchange volumes. Revenue arises from currency exchange, and recognition takes place at the moment of exchange. # '''Wealth:''' Revenue from cryptocurrency, commodities, trading, and vault products arises from acting as an agent to buy or sell assets on behalf of customers. This revenue stream is derived from exchange mark-ups, commissions, and fair usage fees, and recognition aligns with the execution of customer orders. '''Revenue Growth:''' Revenue witnessed impressive growth of 190% year on year, reaching £636 million. This growth was driven by expanding customer numbers across Retail and Business ecosystems, including a notable 46% surge in retail customers. The company's acquisition strategies and organic growth further bolstered this expansion. Gross Margin soared to nearly 70%, attributed to an increased share of revenue from higher-margin products such as Foreign Exchange and Wealth, coupled with enhanced margins in payment operations due to cost optimization efforts. The company demonstrated operating leverage, with operating expenses rising by 37%, while Gross Profit surged by 512% year-on-year. The achievement of profitability in 2021 was significant, with reported profit from operations amounting to £59.1 million and total comprehensive income reaching £19.7 million for the year. The company witnessed substantial growth in customer deposit balances, reaching £7.4 billion by December 2021, and loans and advances to customers surged to £17.8 million. The equity-to-total-assets ratio improved from 7.9% in 2020 to 12.5% in 2021, supported by an $800 million Series E equity funding round. '''Additional Revenue Streams:''' In addition to the aforementioned details, the company also derives revenue from other sources, such as: * Gaining a portion of the revenue from the fee paid to MasterCard© by merchants for payment processing. * Launching a paid Premium service in April 2017, resulting in customer sign-ups and additional revenue. * Earning revenue through Revolut credit accessed from the app and promoting new start-ups. * Generating revenue from Revolut for Business, a subscription-based web service catering to international payments and corporate travel management.
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