XTB net profit in Q22 by 962 43% up. Shares up XNUMX%

In the first quarter of 2020 XTB recorded consolidated net profit of PLN 176 million against PLN 0,8 million profit a year earlier. The number of clients is also growing dynamically. The company has benefited primarily from increased volatility due to the coronavirus pandemic.

An excellent report for the first quarter of 2020 encouraged investors to buy shares of a Polish broker. At the opening of the course XTB increased by as much as 40 percent And this is not surprising, because the presented results probably surprised even the greatest optimists. XTB revenues increased enormously, which in the first three months of this year amounted to PLN 306,7 million (in the first quarter of 2019 it was PLN 40,9 million).

We also managed to win  record number of customers. Agreements were signed with 21 people, which is an increase of 911% compared to the same quarter last year.

XTB stock chart at the opening of the session on April 27, 2020. Source: TradingView.com

Where does XTB earn so much?

XTB owes a surprisingly large profit to its huge revenues. They increased year-on-year by 650%, or PLN 265,8 million. A year ago they amounted to PLN 40,9 million, and in the first quarter of 2020 they reached as much as PLN 306,7 million. Why such a huge increase?

"Significant factors determining their level were the above-average volatility on the financial and commodity markets, caused, inter alia, by the global coronavirus COVID-19 pandemic and a constantly growing customer base combined with their high transaction activity, expressed in the number of contracts concluded in lots. Consequently, trading in derivative instruments amounted to PLN 784,8 thousand. flights (Q2019 394,4: 276,9 thousand flights) and the profitability per flight increased by XNUMX% " - we read in the report published on April 26.04.2020, XNUMX.

More and more XTB clients

The excellent financial result of XTB is the result of the broker's constant work in acquiring new clients. In this respect, the group recorded another record of 21 911 against 6 843 a year earlier.

"This is the result of continuing the optimized sales and marketing strategy, the successive introduction of new products to the offer, such as CFD instruments based on sector indices, stocks and ETFs, and expansion into new geographic markets" - summarizes the management board of XTB.

The number of active clients is also growing. Year on year there were 105,3% more and currently the base of registered users who remain on the market  is higher by 23

The oil craze gave the broker a profit

While the price drops oil to levels not recorded in history were the reason for the bankruptcies of huge companies and individual investors, XTB earned the most on raw materials.

Commodity-based CFDs represent the largest position on the income side. Their share in the structure of revenues on financial instruments in the first quarter of 2020 reached 51,2% against 6,8% a year earlier. The second significant group are CFDs based on stock market indices. Their share in the structure of revenues in the first quarter of 2020 amounted to 36,2% (Q2019 89,3: XNUMX%). Most people speculate on the German index DAX. Interestingly, relatively little XTB earns on currency-based CFDs. In this case, profits also increased, but accounted for 11,1% of all revenues against 1,1% a year earlier.

Source: XTB report for Q2020 XNUMX

XTB wants to grow further

Good financial results will not affect the satisfaction of the XTB board. Further expansion and investments are planned.

“XTB with its strong market position and dynamically growing customer base is more and more boldly entering non-European markets, consistently implementing the strategy of building a global brand. In 2020, the Group intends to increase penetration of European markets and further build its presence in Latin America, Asia and Africa " - summarizes the company's management.