XTB, a
leading online trading company publicly listed on the Warsaw Stock Exchange
(WSE: XTB), reported a record-breaking consolidated net profit of EUR 64.4
million for Q1 2023, which was an impressive increase of 19.9% year-over-year (YoY).
Record Net Profit for XTB
in Last Quarter
This historically
best performance can be attributed to the ongoing high volatility in financial
and commodity markets driven by geopolitical tensions and banking crises. Additionally, XTB’s
strategic marketing initiatives significantly contributed to a substantial
increase in client numbers and transactional activities.
Operating
revenues for Q1 2023 reached EUR 113.1 million, compared to EUR 94.6 million in
Q1 2022, while operating costs rose to EUR 39.2 million from EUR 28.2 million
during the same period.
The
preliminary report for the past quarter shows that the results are better not
only on an annual basis but also on a quarterly basis. Compared to Q4 2022, one
of the worst quarters in XTB’s recent performance, the net profit increased fivefold.
“Preliminary
results for the first quarter of 2023 turned out to be record-breaking in many
respects,” Omar Arnaout, the CEO of XTB, commented. “Our strategy
based on expanding the customer base and continuous investment in technology
and new products brings the expected results.”
In contrast, XTB reported a total net profit of EUR 163.3 million for the entirety of 2022. If the broker can sustain remarkable momentum from Q1 2023 into the next quarter, it is poised to surpass its previous year’s financial performance within just nine months of 2023.
XTB preliminary financial results for Q1 2023
XTB’s Impressive Client
Acquisition and Trading Volume Growth
In Q1 2023,
XTB attracted 104,200 new clients, bringing their total clientele to
703,900, which is a 46.1% increase YoY and more than 100% quarter-over-quarter (QoQ).
Notably, the number of active clients rose to 215,700 from 149,800 in Q1 2022 by 44% YoY.
“In
the first quarter of 2023, we focused our activities on the promotion of the
capital market by engaging our ambassadors. These efforts resulted in a record
number of acquired customers,” Arnaout added.
This growth
translated into an increase of 18.2% in trading volume on contracts for difference
(CFDs) instruments, reaching 1.86 million lots compared to 1.56 million in the
corresponding period of 2022. Profitability per lot in Q1 2023 was EUR 62, which was a
slight increase from EUR 61 in Q1 2022.
In Q1 2023,
CFDs based on commodities dominated XTB’s revenue structure, accounting for
48.8% of revenue from financial instruments, which is up from 30.2% in Q1 2022. Natural
gas and gold were the most profitable instruments in this category. CFD
instruments based on indices constituted 45.3% of revenue in Q1 2023, which is down from
57.4% in Q1 2022. Forex -based CFDs represented 4.2% of total revenue, compared
to 9.4% a year earlier.
XTB preliminary financial results for Q1 2023
XTB Wants to Lower Market
Entry Threshold
Omar
Arnaout commented that alongside launching the “Invest Responsibly”
project and consistently investing in free educational materials for clients,
XTB is working to make the financial world more accessible to new investors.
The broker
aims to lower the entry barrier for individuals seeking to independently
“challenge the market” and has introduced ‘fractional shares’ as a
new product to allow that. These shares made their debut in select markets at
the beginning of Q2, and XTB plans to expand their availability to other
countries soon. As exclusively revealed to Finance Magnates, the service
should be available in Poland and Spain within the next few weeks.
“We are proceeding according to the planned schedule. I can reveal that the introduction of Fractional Shares to two additional markets – Poland and Spain – is just a matter of weeks,” the XTB’s CEO disclosed.
In March,
the Management Board of XTB announced its decision to pay its shareholders 50% of the company’s estimated net profit of PLN 761.6 million ($171.6 million) in 2022 as dividends.
XTB, a
leading online trading company publicly listed on the Warsaw Stock Exchange
(WSE: XTB), reported a record-breaking consolidated net profit of EUR 64.4
million for Q1 2023, which was an impressive increase of 19.9% year-over-year (YoY).
Record Net Profit for XTB
in Last Quarter
This historically
best performance can be attributed to the ongoing high volatility in financial
and commodity markets driven by geopolitical tensions and banking crises. Additionally, XTB’s
strategic marketing initiatives significantly contributed to a substantial
increase in client numbers and transactional activities.
Operating
revenues for Q1 2023 reached EUR 113.1 million, compared to EUR 94.6 million in
Q1 2022, while operating costs rose to EUR 39.2 million from EUR 28.2 million
during the same period.
The
preliminary report for the past quarter shows that the results are better not
only on an annual basis but also on a quarterly basis. Compared to Q4 2022, one
of the worst quarters in XTB’s recent performance, the net profit increased fivefold.
“Preliminary
results for the first quarter of 2023 turned out to be record-breaking in many
respects,” Omar Arnaout, the CEO of XTB, commented. “Our strategy
based on expanding the customer base and continuous investment in technology
and new products brings the expected results.”
In contrast, XTB reported a total net profit of EUR 163.3 million for the entirety of 2022. If the broker can sustain remarkable momentum from Q1 2023 into the next quarter, it is poised to surpass its previous year’s financial performance within just nine months of 2023.
XTB preliminary financial results for Q1 2023
XTB’s Impressive Client
Acquisition and Trading Volume Growth
In Q1 2023,
XTB attracted 104,200 new clients, bringing their total clientele to
703,900, which is a 46.1% increase YoY and more than 100% quarter-over-quarter (QoQ).
Notably, the number of active clients rose to 215,700 from 149,800 in Q1 2022 by 44% YoY.
“In
the first quarter of 2023, we focused our activities on the promotion of the
capital market by engaging our ambassadors. These efforts resulted in a record
number of acquired customers,” Arnaout added.
This growth
translated into an increase of 18.2% in trading volume on contracts for difference
(CFDs) instruments, reaching 1.86 million lots compared to 1.56 million in the
corresponding period of 2022. Profitability per lot in Q1 2023 was EUR 62, which was a
slight increase from EUR 61 in Q1 2022.
In Q1 2023,
CFDs based on commodities dominated XTB’s revenue structure, accounting for
48.8% of revenue from financial instruments, which is up from 30.2% in Q1 2022. Natural
gas and gold were the most profitable instruments in this category. CFD
instruments based on indices constituted 45.3% of revenue in Q1 2023, which is down from
57.4% in Q1 2022. Forex -based CFDs represented 4.2% of total revenue, compared
to 9.4% a year earlier.
XTB preliminary financial results for Q1 2023
XTB Wants to Lower Market
Entry Threshold
Omar
Arnaout commented that alongside launching the “Invest Responsibly”
project and consistently investing in free educational materials for clients,
XTB is working to make the financial world more accessible to new investors.
The broker
aims to lower the entry barrier for individuals seeking to independently
“challenge the market” and has introduced ‘fractional shares’ as a
new product to allow that. These shares made their debut in select markets at
the beginning of Q2, and XTB plans to expand their availability to other
countries soon. As exclusively revealed to Finance Magnates, the service
should be available in Poland and Spain within the next few weeks.
“We are proceeding according to the planned schedule. I can reveal that the introduction of Fractional Shares to two additional markets – Poland and Spain – is just a matter of weeks,” the XTB’s CEO disclosed.
In March,
the Management Board of XTB announced its decision to pay its shareholders 50% of the company’s estimated net profit of PLN 761.6 million ($171.6 million) in 2022 as dividends.
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Today, XTB, one of the leading global brokers, announced yet another record profit in the first quarter of 2023. The huge success is largely due to their rapid customer acquisition in this past period, as more than 100,000 new clients have signed up to use the company’s online trading platform.
XTB offers comprehensive trading services to both private and institutional clients in over 150 countries around the world. Along with the wider range of platform and asset selection, the broker is renowned for its superior customer service, educational materials, and great varieties of trading tools.
In the most recent quarter, the company’s assets under management (AUMs) totalled a staggering $2.2billion, while the quarterly profit increase was at 88 percent year-on-year. This results from the growing number of active investors and the company’s drive to bring in more new customers.
As CEO Tony Mandinaon remarked during the announcement today, “We are delighted to announce another record-breaking quarter for XTB. The entire team worked extremely hard to reach such outstanding results. Our impressive customer growth has meant that we have been able to take advantage of the current bull market, particularly in the tech sector.
Going forward we have plans to capitalise on our current success and drive even greater value for our clients. We are confident that our innovative trading products and diversified asset offerings will continue to offer our customers the best opportunities to succeed in the highly competitive global markets.
For XTB, the first quarter of 2023 was a resounding success, and this latest achievement is sure to put investors’ minds at ease going into the rest of the year. The growing global client base demonstrates that XTB can continue to deliver amazing results going forward.
