XTB Profits Soar YoY in Q3 2020, Client Activity Peaks

The brokerage became commission-free earlier this year.

Polish brokerage XTB has published its financial and operating results for the third quarter of 2020, ending on September 30, showing a significant increase across all metrics, compared year-on-year.

The revenue of the brokerage for the quarter increase to PLN139.6 million from the previous year’s PLN61 million. That is an uptick of 129.1 percent year-on-year.

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This revenue jump resulted in a 341.1 percent year-on-year gain in the net profit of the brokerage. In absolute terms, it stood at PLN68.4 million for the quarter. EBITDA was PLN79.5 million, a rise of 342.3 percent year-on-year.

XTB highlighted that the massive increase in revenue resulted from the growing client base and the higher transaction activity. Indeed, it acquired 21,178 clients in the period, a year-on-year jump of 110.8 percent. The average number of active clients on the platform in Q3 remained 55,760, the highest in the brokerage’s history.

Despite the healthy uptick, the revenue and profits went down compared to the first two quarters of 2020, when the broker saw a windfall gain due to the impact of COVID-19 in the markets.

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“The first half of 2020 was marked by above-average volatility in financial markets, what allowed XTB to achieve record revenues and significantly increase the client base,” the management of the brokerage wrote. “The priority of the Management Board is to further increase the client base in the subsequent periods, leading to strengthen the market position in the world.”

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Regulated by the watchdogs in Poland, the United Kingdom, and Spain, XTB offers trading services with several assets, including forex, indices, commodities, stock CFDs and cryptocurrencies.

The CFDs volume of the brokerage increased by 79.6 percent year-on-year in Q3 to 760,373, with a 27.5 percent gain in per lot profitability to PLN184.

The increase in the trading followed the broker’s decision to go commission-free for monthly volumes of up to EUR 100,000. Additionally, the brokerage also signed well-known football coach, José Mourinho earlier this year as its brand ambassador.

Though XTB offers services across Europe, its primary markets are in Poland and Spain. Now, it is building its presence in several countries in Latin America, Asia, and Africa.

Meanwhile, the publicly traded shares of the brokerage plummeted since reaching its peak in July. However, gains are still significant on a year-to-date chart.

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