Broker Robinhood released its financial results for the third quarter of 2023, which fell short of analysts' expectations.
The broker reported net revenue of $467 million for the period, well below the average analyst forecast of $478.9 million. Operating income for the third quarter fell 11% year over year to $185 million, primarily due to lower cryptocurrency trading volume, which fell 55% to $23 million.
The decline in cryptocurrency trading volume was driven by a decline in investor interest in the digital asset market amid a number of high-profile incidents, including the collapse of FTX. In addition, increased regulatory scrutiny and a crackdown on some leading cryptocurrency exchanges forced Robinhood to remove Solana, Cardano, and Polygon tokens from its trading platform.
Despite the weak coverage, Robinhood announced plans to launch cryptocurrency trading in the European Union and brokerage operations in the United Kingdom in the coming weeks.
"After building an experienced team, we will soon launch brokerage operations in the UK," Robinhood said in a note.
"We also plan to launch cryptocurrency trading in the EU following our launch in the UK," the company added.
It's worth noting that the UK market is "empty" after many firms left the market due to new promotion rules, which came into effect on October 8, 2023.
Read also: Binance presented data on its cryptocurrency reserves.
