Publicly listed Polish forex and CFDs trading firm X-Trade Brokers (WSE:XTB) has notified investors today about the business performance of the company during the first quarter of 2017.
The report explains that the group’s strategic plan is to enhance its growth through expansion into new markets, expanding the product and service offering, as well as the development of the institutional segment.
Is a Deeper Stock Market Correction Imminent?Go to article >>
In Q1 2017 specifically, XTB focused on the development of its operations in Latin America. A new subsidiary was founded in Chile and a company in Belize was acquired. During the quarter the group also expanded its equity CFDs and synthetic stocks offering with new products based on Scandinavian shares (Denmark, Finland, Norway and Sweden).
As it already reported in its preliminary results last month, for the first three months of 2017, XTB posted a total of just PLN 58.7 million in revenue – 29% lower when compared to the same period of last year on a constant currency basis.
XTB also reported a consolidated net profit of PLN 10.6 million in the first quarter of 2017, compared to PLN 31.9 million in Q1 2016.
The report explains that the net result for the quarter was mainly shaped by the following three factors:
• decrease in revenues resulting from lower profitability per lot;
• improved cost-effectiveness, showing a decrease in operating costs, with a simultaneous increase in the number of accounts and the number of active accounts; and
• occurrence of negative exchange rate differences (finance costs) to the tune of PLN 12.6 million as a result of the Polish zloty strengthening against other currencies.