XTB Reports Weak Q4 Metrics, but Full Year 2017 Results Advance ‎

The largest change across XTB’s financial results came in terms of its net ‎profit, which dropped to $9.7 million in

Publicly listed Polish FX and CFDs brokerage XTB has reported its preliminary results for Q4 2017, and the fiscal year ending on December 31st 2017.

The group has disclosed a decline across a number of different metrics during the three months through December, including its revenues and net income. However, the latest report shows positive figures across key components of its business on a year-over-year basis, per an XTB financial disclosure.

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Compared to a period of strong growth in the fourth quarter of 2016, XTB has seen pronounced retreat in its financial figures. More specifically, during Q4 2017 XTB disclosed a total operating revenue of $22.8 million (PLN 75.4 million), which was down 19.8 percent year-over-year from $28.1 million (PLN 94 million) in Q4 2016.

Looking at its total revenues for the full year, however, XTB posted a figure of $82 million ‎(PLN 273.7 million)‎, a gain of 9.3 percent relative to $75.06 million ‎(PLN 250.5 million)‎ in the previous fiscal year.

The largest change across XTB’s financial results came in terms of its net profit, which dropped to $9.7 million (PLN 32.42 million) in Q4 2017, down 35.6 percent year-over-year from $15.08 million (PLN 50.42 million) in Q4 2016. This weak performance was reversed across a yearly timetable, with the previous calendar year showing a profit of $27.9 million (PLN 93.1 million), up nearly 20 percent compared to $23.3 million (PLN 77.7 million) in the year prior.

Coupled with this advance, XTB has registered an increasing number of active accounts with 23,773 as of Q4 2017, growing steadily from 19,376 in Q4 2016, or 23 percent year-over-year. New accounts were also on the uptick, swelling 62 percent year-over-year to 50,723 in Q4 2017, relative to just 31,300 accounts in Q4 2016.

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In the opinion of the its board, the increase in number of accounts is set to continue in 2018, due to the increased marketing activity and the introduction of new products. The company maintains that the largest business growth potential is in the German, French and Latin American markets.

One of the group’s most noteworthy findings was its net deposits, which fell to $25.4 million (PLN 84.91 million), down 27 percent year-over-year from $35 million (PLN 116.7 million) in Q4 2016.

However, this weakness wasn’t extended on a yearly basis thanks to the overall strong financials. XTB said that deposits were pointed higher year-over-year, coming in at $107.1 million (PLN 357.6 million) as of December 2017, up 13.9 percent from $94 million (PLN 314.0 million) in 2016.

According to a company statement, XTB attributed the weaker quarterly performance to normal fluctuations tied to its business model, but in the longer term, which is the year, the group’s revenues are more stable.

Finally, XTB said that its operating revenues were primarily influenced by the indices stock CFDs segment as the asset class generated 60.7 percent of the company’s total revenue compared to 46.1 percent a year earlier.

Polish online trading brokerage has been back and forth in its future plans for operations within Turkey. After the announcement by the Capital Markets Board (CMB) of Turkey that new and more stringent regulations will be implemented, the broker initially indicated it was considering leaving the Turkish market.

Last month, Finance Magnates interviewed XTB board member Paweł Szejko to get some clarification regarding the company’s current predicament.

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