XTB Reports Significant YoY Profit and Revenue Growth in H1 2018

The broker attributes its results to the implementation of its marketing strategy and favourable market conditions.

Polish retail brokerage company X-Trade Brokers (XTB) announced its preliminary financial and operating results for the first half of 2018 today. According to the report, in the six months ending June 30, 2018, the broker reported a significant increase in profits and revenue.

In the first half of this year, XTB reached a record for the consolidated net profit of $27.4 million (PLN 101.1 million). When compared to the same period last year, which had a net profit of $7.97million (PLN 29.4 million), this is an impressive increase of 244.5 percent.

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Operating income also saw significant gains. In H1 2018, operating profit increased by $19.7 million (PLN 72.6 million) or 37 percent year-on-year to reach $53.7 million (PLN 198 million). From this, the retail segment made up $50.7 million (PLN 186.9 million), up by 44 percent year-on-year. The gains in operating income come despite a notable loss in its institutional segment (X Open Hub) which was down by 83 percent at $3 million (PLN 11 million).

Revenues increase in H1 2018 on XTB

In H1 2018, consolidated revenue was $53.6 million (PLN 197.9 million), up 37 percent from the first half of 2018 which recorded consolidated revenue of $34 million (PLN 125.3 million). Looking at revenues in terms of classes of instruments, CFDs based on stock indices dominated yet again. For revenues attributed to financial instruments, CFDs on stock indices made up 51 percent in the first half of 2018. This is slightly up from the same period last year, where it contributed to 50.5 percent of revenues.

According to the statement, CFD instruments based on the German DAX stock index (DE30) was the most popular among investors. In addition, US indices were also very popular on the platform.

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For CFD instruments based on currency pairs, revenues amounted to 29.3 percent of total revenues – slightly down from the same period last year which was 31.9 percent of revenues. Among these instruments, the EUR/USD currency pair was the most popular amongst the broker’s clients. The total revenues for CFDs were $52.3 million (PLN 192.8 million), an increase of 36 percent from the same period last year.

Number of new clients continue to increase on XTB

The number of new clients to trade on XTB’s platform was 10,046 in the first half of this year. This is up 1,916 clients or 19 percent from the same period last year. The average number of active clients also increased to 22,135 during the six months ended June 30, 2018. This is up from the 17,748 active clients in the first half of 2017.

The growth of new and active clients can be largely attributed to the broker’s sales and marketing strategy, which was implemented and optimized in the first half of this year, the statement said. In addition, favorable market conditions also helped to boost client acquisition and engagement.

For the remaining quarters of this year, XTB will aim to stabilize the number of new and active clients. The broker aims to see similar levels as in the previous quarter, which was record-breaking. In addition, the Management Board believes the greatest potential for the growth of its business is in the German, French and Latin America markets.

According to the statement, XTB plans to publish its final financial and operating results for the first half of 2018 on August 23, 2018. This will be published in the extended, consolidated report for the Group.

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