Octopus Energy Group reports FY19/20 fiscal results
- UK customer base doubled to 2.3m accounts (1.4m households). Growth has continued to 3.9m accounts as of April 2021 (2.1m households)
- Revenue growth +160% from £477m to £1.24bn (YE April 2021 est. £2bn)
- Efficiency gains drove significant gross margin increase from 0.8% to 5.4% (6.8x) and gross profit increase from £3.5m to £67m (+1,800%)
- Relentless investments in international expansion, technology development, product innovation and customer growth resulted in £53m loss
- Strategic investment brings year end net assets to +£98m
London, 7th May 2021 - Octopus Energy Group, the technology-led green energy company which has grown to 2.1 million customers since launching to the UK market exactly five years ago (7.5% market share), today reports its financial results for the fiscal year 2019/2020, which ended on 30 April 2020.
“Octopus Energy now operates in 6 countries, has licensed its world-class Kraken technology platform to 15m accounts (8m now live), expanded into renewable generation and smart grid technology - and has become one of ‘The Big 6’ in the UK - at least in terms of scale.
“Thanks to Kraken’s unique capabilities, we were able to double our customer base without compromising on customer service, and smoothly transition into remote working when coronavirus arrived in the UK in early 2020.
“The UK business operates at sustainable operating margins, with Kraken enabling lower operating costs than rivals. Our net loss of £53m is driven by our relentless investment in new technology for a low-carbon grid, expansion into more countries and markets and investing in customer growth. Our mission to drive cheaper, greener energy globally is truly gathering pace,” concluded Greg Jackson, CEO and Founder of Octopus Energy Group.
In December 2020, Octopus Energy hit a $2.1 billion valuation following two large-scale investment rounds in a single year, totalling $577 million. The business was the second-most funded UK tech company in 2020 and is the only energy retailer to have been awarded Which? Recommended Energy Provider status for four years in a row.
FY 2019/2020 Fiscal Highlights
- In the FY19/20, Octopus Energy surged to 1.4 million household customers (2.3m accounts), doubling its customer base from 700,000 customers at the end of April 2019.
- Due to the company’s unrivalled efficiency enabled by its in-house developed technology platform Kraken, Octopus saw an increase in gross margin from 0.8% to 5.4% and an increase in gross profit from £3.5 million to £67 million.
- Revenue in the same period saw a 2.6x increase from £477 million to £1.24 billion. The company expects revenue growth to follow the same trajectory during the new financial year, near-doubling to £2 billion by April 2021.
- During the accounting period, Octopus made significant investments in technology and scale, leading to a £53 million loss in the FY19/20. It opened an office in Warwick, started operations in Australia, acquired the German energy supplier 4hundred and the British entech pioneer nCube, and entered strategic partnerships with the Mayor of London and The Midcounties Co-operative. It also launched 6 new product solutions, including the world’s first electricity tariff for vertical indoor farms.
- In the same period Octopus started licencing Kraken to other energy retailers, entering agreements with the Korean energy company Hanwha and the UK energy providers EON/Npower and Good Energy, taking the total number of accounts supported to 17m. The globally scalable platform is designed to drive the smart grid and greatly improve the efficiency and customer service of energy suppliers.
Notes to Editors:
For an overview of Octopus Energy Group and its subsidiary companies, please visit octopusenergy.group
About Octopus Energy Group
Octopus Energy Group was launched in 2016 with a vision of using technology to make the green energy revolution affordable whilst transforming customer experiences. Its domestic energy arm already serves over 2 million customers with cheaper greener power, through Octopus Energy, M&S Energy, Affect Energy, London Power and Co-op Energy.
Octopus Energy for Business manages over 25,000 customers with proprietary energy offerings. Octopus Electric Vehicles is helping make clean transport cheaper and easier, and Octopus Energy Services is bringing smart products to thousands of homes.
All of these are made possible by OEG's tech arm, Kraken Technologies, which offers a proprietary, in-house platform based on advanced data and machine learning capabilities, Kraken automates much of the energy supply chain to allow outstanding service and efficiency as the world transitions to a decentralised, decarbonised energy system. This technology has been licensed to support over 15 million accounts worldwide, through deals with Good Energy, E.ON energy and Origin Energy.
Octopus Energy recently received its B Corporation (B Corp) certification, joining a group of companies that are pursuing purpose as well as profit and are meeting rigorous social and environmental standards. In December 2020, Octopus Energy Group was valued at over $2 billion after closing its second investment round of the year led by international energy companies Tokyo Gas and Origin Energy. With operations in the US, Japan, Germany, New Zealand and Australia, Octopus Energy Group's mission to drive the affordable green revolution is going global.
Hey I'm Constantine, welcome to Octopus Energy!×Close window