The publicly listed Polish retail trading company XTB has announced record-breaking revenue for the first half of 2024, showcasing growth across key metrics and outlining plans for product expansion in the coming months. However, the second quarter casts a shadow over the report, showing significantly worse results compared to the beginning of the year.

XTB Posts Higher Revenues and Client Numbers in H1 2024

The company reported consolidated revenue of $938.1 million, a 12.9% increase year-over-year, while net profit rose 10% to $463.0 million despite higher marketing and employment costs. XTB's client base expanded significantly, with 232,300 new clients added in the first half, bringing the total to 1.11 million.

“The first half of the year is record-breaking in many respects,” commented Paweł Szejko, the Chief Financial Officer and Management Board Member of XTB. “In 6 months of this year, we generated more revenue than in the entire year of 2020 or 2021, which shows the scale of XTB's growth in recent years.”

The second quarter, however, performed significantly worse than the first three months of 2024. From April to June, the net profit was PLN 160 million ($40 million) compared to nearly PLN 303 ($77 million) reported from January to March.

Nevertheless, the number of active clients remained very high throughout the period, reaching 462,771, up from 307,511 reported in the first half of 2023, surging by more than 50%.

From CFD Broker to Investment App

XTB's trading volume in CFD contracts increased 8.7% to 3.93 million lots, with profitability per lot rising 3.9% to $239. Commodity-based CFDs were the most profitable asset class, accounting for 48.2% of revenue, followed by index-based CFDs at 37.2%.

However, the company is advancing its transformation from a CFD broker to a universal investment app. Nearly 80% of new clients now start by investing in stocks, ETFs, or creating Investment Plans. Net deposits more than doubled to $3.80 billion, reflecting growing client trust and the introduction of interest on free funds.

“This is partly due to the high profitability of CFD instruments based on gold, natural gas and cocoa prices. The second most profitable asset class was index-based CFD. Their share of the financial instruments revenue structure reached 37.2%, compared to 51.8% a year earlier,” the report explained.

New Products and New Markets

XTB outlined several product initiatives for the near future. These include the launch of government and corporate bond offerings in September, the introduction of IKE retirement accounts for Polish investors, and the debut of a virtual wallet with a multi-currency card by year-end.

The company is also pursuing international expansion, with plans to enter the Brazilian and Indonesian markets. Operations in Indonesia are expected to commence in early 2025, while the licensing process in Brazil is ongoing.

“The Company expects to be able to start operations in Indonesia in early 2025. As for Brazil, XTB is currently in the process of obtaining licences in this market, which is expected to take until 2025,” XTB added.

As part of its global marketing strategy, XTB has signed an agreement with a new brand ambassador, with commercials featuring the individual set to air later this year.