Polish publicly listed forex and CFDs brokerage XTB announced its preliminary results for the first three months of 2017. The company marked a decline in revenues in profits, but managed to onboard a much larger number of new clients and retained a higher number of active accounts when compared to a year ago.
For the first three months of 2017, XTB posted a total of $15.1 million (PLN 58.7 million) worth of revenues. The figure is lower by 29 percent when compared to the same period of last year on a constant currency basis.
Although XTB posted lower revenues, the company also managed to cut operational costs to $9.43 million (PLN 36.6 million). The number declined when compared to last year by about 10 percent.
XTB’s operational profit amounted to $5.7 million (PLN 22.2 million), with the net figure reaching $2.74 million (PLN 10.6 million). The bottom line of the forex and CFDs brokerage was lower by over 66 percent when compared to the first three months of 2016.
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Growing Account Numbers
On a positive note, the number of active and new clients of XTB increased materially in the first quarter of 2017 when compared to a year ago. While risk appetite declined and the higher number of customers did not result in higher client deposits, the prospects are here for an increase01 down the line, assuming that more volatile times return to the FX and CFDs markets.
The number of new accounts opened at XTB during the quarter was 13,280 which is more than double the amount registered during the first quarter of last year at 6,438. The average number of active accounts increased to 20,408 from 16,087 a year ago.
The amount of net deposits into trading accounts throughout the quarter was about $27.8 million (PLN 107.8 million). The figure is more or less flat when compared to the previous year.
Total trading volumes were a notch higher when compared to last year, marking a total of 540,082 lots versus 533,201 lots a year ago. The lot value used for forex trading transactions is 100,000, while for other instruments the size varies.