XTB increases profit by 434%. Shares up strongly

Dom Maklerski X-Trade Brokers ( XTB ) presented preliminary financial results for Q3 2019. The company boasts an increase in net profit by as much as 434% to the level of PLN 15,5 million. Stocks soared, gaining up to 12% in yesterday's session on the Warsaw Stock Exchange.

XTB acquired over 10 thousand new customers

After a very poor report for the first 6 months of this year, where XTB recorded a fall in net profit by up to 95% y / y, now is the time for reflection. The latest report indicates that the company has already managed to manage the situation after "ESMA effect"who was supposed to be responsible for the weak first quarter.

The message reads:

"In Q3 2019, XTB generated PLN 15,5 million of consolidated net profit against (PLN 2,9) million loss a year earlier. Consolidated revenues amounted to PLN 61,0 million (Q3 2018: PLN 47,6 million), and operating costs PLN 43,0 million (Q3 2018: PLN 48,8 million). In the third quarter, the Group acquired a record number of new customers, ie 10 042, which means an increase by 105,6% y / y and by 8,6% q / q. "

Interesting data are also the strong increase in operating activities (EBIT), which increased by 1327% y / y to the level of PLN 18 million, and the number of new clients acquired. In Q10, as many as 28 new ones were added, and the broker maintained an average of 40. active investors, i.e. as much as XNUMX% more than the year before. The elements of this success are the introduction of new products to the offer - primarily ETF instruments and shares.

"Since the beginning of the year, the Group has recorded a record number of new customers of 26 131 against 14 930 in the comparable period. In the third quarter of 2019 alone, the number of new clients increased by 796 clients q / q, i.e. by 8,6%. This is the result of continuing optimized sales and marketing strategy and the gradual introduction of the new products, such as stocks and ETFs. In turn, the average number of active clients was higher by 7 859 compared to the third quarter of 2018, ie by 38,8%. "

The report in the final version, which will contain the full financial results of the brokerage house is to be published in November 8 2019 year.

Bottom bounce on shares

Share price foreksowego largest brokerage house in Poland since the debut were a clear downward trend. Certainly, ESMA regulations contributed to the revision of the development prospects of the company and the entire industry, but also the sentiment is not without significance there was a financial penalty imposed by the PFSA over 12 months ago.

Yesterday the company's price finally rose, gaining even 12% at a key moment, clearly moving away from local lows.

XTB, WSE stock price. D1 interval. Source: TradingView.com