XTB with a record net profit. Increase by + 244,5% in the first half of 2018

X-Trade Brokers, the largest Forex / CFD broker in the region of Central and Eastern Europe, published financial results for the second quarter of this year, as well as for the first half of 2018. The results are atleast satisfactory. The Polish company has boasted increase in net profit by as much as 244,5% y / y, which totaled as much as PLN 101,1, and operating income jumped up by 57,9% y / y and amounted to PLN X million.

More and more customers in XTB

Great statistics were also recorded when it comes to for an increase in the number of active clients (+ 24,7% y / y)and so-called profitability per one transaction flight (+ 28,9% y / y). These are solid foundations for building better and better perspectives, even in the light of new regulations. At the end of June, the average number of active clients was 2018 22 135.

After making the decision to completely withdraw the broker from the Turkish market due to the introduction of very restrictive restrictions, the management has taken a change of direction. Germany, France and Latin America will become the new target markets, and XTB will focus on these regions. The main goal is to stabilize the number of new customers and stimulate their trading activity. Expansion to Asia and even Africa is also being considered.

Interestingly, XTB business is extremely well diversified. Behind 32,3% of the revenue value corresponds to the Polish market. Meanwhile, Spain comes second with 15% share. No other country exceeds the 15% ceiling.

CFD for the most profitable shares

According to the report, contracts for exchange rate differences based on shares turned out to be the most profitable group of instruments in the first half of 2018. Their share in income was as high as 51%. CFDs on the German DAX index (DE30) and the US indices also turned out to be extremely important. Revenues from currency pairs accounted for 29,3% of the total - a decrease was recorded by 2017% compared to 2,6. The EUR / USD pair was the leader in this group of instruments.

ESMA not fearful?

ESMA's product intervention, which entered into force on August 1, is both opportunities and threats for XTB. This is because the reduction of leverage may affect a short-term decrease in the turnover generated by customers from the territory of the European Union. On the other hand, in the long term, thanks to its well-established and stable position, XTB is convinced of the possibility of strengthening its status. Changes in regulations may cause some smaller entities to decide to withdraw from the market. This will especially apply to companies that have so far relied on aggressive marketing and "bonus" incentives, which were banned on August 1.

It is worth emphasizing, however, that the data published so far are only preliminary financial and operational results. The final data will be provided in the company's consolidated report on 23 August 2018.

Full XTB report - Download (PDF)