XTB publishes financial results and sets new historic records

X-Trade Brokers Dom Maklerski SA (XTB) published the latest financial results for the first quarter of 2018. It was a record period for the company in terms of revenues, which were doubled to PLN 113,7 million. Operating profit also increased by as much as 50,5 million zlotys, to the level of 72,7 million zlotys. XTB showed a record consolidated net profit of 59,5 million PLN, compared to 10,6 million PLN in the corresponding period of 2017.

Historical XTB records

In the first quarter of 2018, the company's revenues amounted to PLN 113,7, ie an increase of 93,7% yoy. Doubling revenues is the result of an increase in the volume of transaction turnover of clients counted in flights as well as profitability per lot. In the reported period, the turnover of customers amounted to 675 thous. flights, i.e. more about 135,3 thous. rdr flights, and unit profitability amounted to 168 PLN, ie increase by 54,1% yoy.

¹) A lot is a unit of trading in financial instruments; in the case of foreign exchange transactions, the lot is equal to 100 units of the base currency; in the case of instruments other than CFDs based on currencies, the amount is specified in the instrument table and is different for different instruments.

²) Income from operating activities divided by CFD derivatives trading in flights.

Omar Arnaout, President of the Management Board of X-Trade Brokers DM SA, comments:

In Q2018 59,5, we recorded an almost twofold increase in revenues, the effect of a higher volume of customer transactions and higher profitability per lot in all major markets of operations. The company ended the first quarter of this year. record net profit of PLN 2018 million. Positive financial result in QXNUMX XNUMX  is a good sign for the next quarter of 2018.

In Q2018 135, XTB recorded an increase in revenues in its main markets of operations, i.e. Central and Eastern and Western Europe, by 75% and 27% y / y, respectively. In the discussed period, Poland, which accounts for a 30,3% share in the sales structure, recorded PLN 186 million in revenues, ie 18% growth yoy. The second largest market in Spain (20,5%) ended Q56 this year. with sales at the level of PLN 5,8 million, which translates into XNUMX% yoy increase Latin America is also gaining importance in global sales, filling the gap left by Turkey, generating PLN XNUMX million in sales. 

Retail customers more and more

In Q2018 102,9, the Group's revenues from retail operations amounted to PLN 44,1 million, compared to PLN XNUMX million in the same period last year. 

¹) Number of accounts opened by the Group's clients in individual quarters.

²) Average quarterly number of accounts for the period 3 2018 and 3 months 2017, respectively 

Omar Arnaout adds:

“We are recording a systematic increase in the number of customers. In the first quarter of 2018, the number of new accounts was higher by nearly 20% yoy. The number of active accounts increased by 24% y / y to the level of 25,3 thousand. and was a record for the past two years. This is the result of an effective sales and marketing strategy and the introduction of new products, with the good situation on the financial markets. "

In the discussed period, revenues from institutional activities of XTB amounted to PLN 10,8 million, ie a decrease by 26,1% yoy. Revenues from this segment are subject to quarterly fluctuations, which is typical for the business model adopted by the Group. 

What's next with XTB?

The greatest concerns for XTB's operations are the new EU regulations introduced by ESMA in the coming months. If and to what extent, will the reduction of leverage affect the results of the largest broker in the region? Despite the theoretically lower outlook, the XTB share price from November 2017 has seen a clear rebound, where after breaking the hole at 3,16 level for PLN, we now see the value more than double.