News

  • 2018.11.08
    XTB financial results for the 3rd quarter of 2018

    In the III quarter of 2018, XTB noted consolidated net loss of PLN 2,9 million against PLN 31,3 million profit a year earlier. The III quarter of 2018 result was charged with a one-off event, which was the imposition of an administrative fine by the PFSA in the amount of PLN 9,9 million of which the Company informed in the current report No. 20/2018 dated 18 September 2018. After correcting by a one-off event, in the III quarter of 2018, the Company generated PLN 6,2 million of consolidated net profit and PLN 7,9 million of operating profit (EBIT). Consolidated revenues amounted to PLN 47,6 million compared to PLN 73,1 million a year earlier.

     

    In the period I-III quarter of 2018, XTB generated consolidated net profit of PLN 97,5 million (after correcting by one-off event PLN 107,1 million) against PLN 60,7 million profit a year earlier.

     

     

    Revenues

     

    In the I half of 2018 XTB noted a record revenues (PLN 197,9 million), which were the result the constantly growing customer base, high volatility in the financial markets, relatively high profitability per lot (an average of PLN 153) and significant customer activity expressed in the number of contracts in lots. In August 2018, the product intervention of the European Securities and Markets Authority (ESMA) came into force. which caused, among others reduction for the retail client of the maximum permitted level of leverage for CFDs up to 30:1 for major currency pairs and 20:1 for non-majors currency pairs, gold and major indices. ESMA’s decision together with the holiday period, and the lower volatility on the financial markets, contributed to the reduction in the III quarter of 2018 transactions volume in lots of 34,1% y/y and 44,0% q/q. Volume was lower by 178,7 thousand of lots y/y and unit profitability by PLN 1,7. Consequently, the revenues decreased by 34,9% y/y ie (PLN 25,5 million) from PLN 73,1 million to PLN 47,6 million. It should be emphasized that XTB business model is characterized by high volatility of revenues in a short period of time.

     

     

    XTB has a solid basis for growth in the form of constantly growing customer base and number of active clients. In the III quarter of 2018 the number of new clients was 4 884 and was higher by 16,3% y/y. The average number of active clients was higher by 2 014, ie. 11,0% y/y.

     

     

    Similarly to the prior quarters of current and previous year, in the III quarter of 2018, XTB implemented an optimized sales and marketing strategy and introduced new products. XTB’s offer has expanded to include shares and ETFs from the largest stock exchanges in Europe and the United States. The aim of expanding the product offer is to create a complete investment company offering various products to investors tailored to their risk appetite.

     

    In the IV quarter of 2018, the Management Board will strive to stabilize the number of new clients and the average number of active clients at the levels observed in previous, record quarters. The Management sees the greatest growth potential in the German, French and Latin American market.

     

    Looking at revenues in terms of the classes of instruments responsible for their creation, it can be seen that, in the III quarter of 2018, CFDs based on commodity dominated. Their share in the structure of revenues on financial instruments in the III quarter of 2018 was 58,9% against 7,5% a year earlier. The most popular instrument among customers was CFD based on quotations of the contract for coffee quoted on the regulated market and an instrument which price is based on quotations of troy ounce of gold on the interbank market. Revenues on CFD instruments based on currency pairs amounted to 22,0% of total revenues against 39,8% a year earlier. Among this class of instruments, the USDTRY currency pair was the most popular among XTB clients.

     

     

     

    Geographically, XTB revenues were well diversified. In the I-III period of 2018 their growth has occurred in both, Central and Eastern Europe, Western Europe and Latin America. Country from which the Group derives more than 15% of revenues is Poland with shares amounting to 33,5% (I-III period of 2017: 24,5%). The second largest market for XTB is Spain, with shares amounting to 14,5% (I-III period of 2017: 20,3%). The share of other countries in the geographical structure of revenues does not exceed in any case 15%. Latin America is also gaining on importance, which has already replaced the gap in Turkey.

     

     

    XTB puts strong emphasis on diversification of segment revenues. Therefore, from 2013, it develops institutional activities (X Open Hub), under which it provides liquidity and technology to other financial institutions, including brokerage houses. Revenues from this segment are subject to significant fluctuations from quarter to quarter, analogically to the retail segment, which is typical for the business model adopted by the Group.

     

     

    Expenses

     

    Operating expenses in the period of I-III quarter of 2018 amounted to PLN 131,6 million (I-III quarter of 2017: PLN 107,4 million) and were higher by PLN 24,2 million ie. 22,6% y/y. This increase was mainly higher by one-off event, which was administrative fine imposed by PFSA in the amount of PLN 9,9 million and higher by:

    •  PLN 6,0 million of marketing costs mainly due to higher expenditures on marketing online campaigns;

    • PLN 4,9 million of salaries and employee benefits costs mainly due to the increase in variable remuneration elements (bonuses);

    • PLN 2,9 million of other external services costs as a result of incurring more expenditure on : 1) IT systems and licenses (increased by PLN 2,2 million y/y); 2) legal and advisory services (increased by PLN 1,1 thousand y/y);

    • PLN 1,8 million of commission costs resulting from higher amounts paid to payment service providers through which clients deposit their funds to transaction accounts.

     

     

    In the Company’s opinion, the imposition of an administrative fine by PFSA is unjustified and not confirmed in the facts. The Commission refused to carry out the evidence requested by the Company (including the expert’s opinion) and did not include the reports of independent experts submitted by the Company. Acting in the interest of the Company and its shareholders, as well as being guided by the welfare of its clients, the Company appealed the decision by filing on 29 October 2018 complaint against the PFSA decision to Provincial Administrative Court.

     

    In terms of q/q, after correcting by one-off event, operating expenses were reduced by PLN 2,1 million ie 4,9%.

     

     

    The Management Board expects in IV quarter of 2018 operating expenses to be at a level comparable to that observed in the previous quarter of 2018. The final level will depend on the variable remuneration elements paid to employees, the level of marketing expenditures and the impact of ESMA’s product intervention on the level of revenues generated by the Group. The value of variable remuneration components will be influenced by the results of the Group. The level of marketing expenditures will depend on the impact of the results and profitability of the Group and on responsiveness of the customers to the actions taken. The impact of ESMA’s product intervention on the Group’s revenues will determine, if necessary, a revision of the cost assumptions for further months of this year.

     

     

    Development perspectives

     

    XTB has a stable market position, growing customer base and over PLN 500 million of own cash on the balance sheet. The Group plans further development by expanding the customer base and product offer, penetrating existing markets and expanding geographically to new markets in Africa and Asia, as well as Latin America, using its presence in Belize as a starting point for expansion and business development in other countries of the region.

     

    The entry into force of product intervention by ESMA creates both opportunities and threats for XTB. On the one hand, there is a temporary drop in trade volumes among European brokers. On the other hand, the Management Board of XTB is convinced of the business’s vitality over a longer time horizon. It seems likely that clients gradually adjust their trading strategies to a lower level of financial leverage. Maintaining the ESMA decision in time should lead to a wave of consolidation in the market and allow XTB to consolidate its leading position on the European market.

  • 2018.11.02
    Record of the Extraordinary General Meeting convened for 17 October 2018
  • 2018.09.18
    Company statement regarding the fine from the KNF

    With reference to the announcement from the 404th meeting of the Polish Financial Supervision Authority (KNF) on 18 September 2018, the Management Board of XTB fully maintains its previous position and finds no grounds for objections regarding the company’s operations.

     

    During the proceedings before the KNF, the Management Board provided the supervisor with extensive explanations as well as legal and quantitative expert opinions of independent entities that confirm that XTB’s use of the asymmetric deviation mechanism did not violate the principle of acting in the best interests of the clients and did not affect the clients’ transaction results. KNF’s comments on the application of this mechanism pertain to operations from January 2014 to May 2015. The guideline regarding the need for symmetrical deviation was issued by the KNF in May 2016, almost a year after the company made voluntary amendments in its IT systems.

     

    Acting in the interest of the company and its shareholders, as well as being guided by the well being of its clients, the company intends to appeal against the decision of the supervisor.

     

    X-Trade Brokers Dom Maklerski S.A. Management Board

  • 2018.08.23
    XTB financial results for the 1st half of 2018

    OVER PLN 70 MILLION REVENUE GROWTH AND RECORD GROWTH OF PROFIT OF NEARLY 250%, GOOD PROSPECTS FOR 2018

     

    In the first half of 2018 X-Trade Brokers Dom Maklerski S.A. (XTB) noted a growth of revenue by PLN 72,6 million up to PLN 197,9 million, as a result of increase in turnover and the improvement of profitability per lot. Operating profit increased by PLN 115,1 million, i.e. PLN 62,4 million y/y. The company reported a record consolidated net profit of PLN 100,4 million against PLN 29,4 million profit a year earlier. In this year XTB will strive to stabilize the number of new clients and average number of active clients at the levels observed in previous, record quarters. In addition, the Management Board sees the greatest potential for business growth in the German, French and Latin American markets.

     

     

    MORE THAN PLN 70 MILLION INCREASE IN REVENUE THROUGH GROWTH BY 23% OF TURNOVER AND IMPROVEMENT OF PROFITABILITY PER LOT ALMOST PLN 35

     

    In the first half of 2018, the company’s revenues amounted to PLN 197,9 million, i.e. an increase of 57,9% y/y. Such a significant increase in revenues is the result mainly from the increase of transactions volume in lots and profitability per lot. During the reporting period, the turnover amounted to 1,3 million lots, i.e. was higher by 237,5 thousand lots y/y and unit profitability amounted to PLN 153, i.e. an increase by 28,6% y/y.

     

     

     

    GROWTH IN THE MAIN MARKETS

     

    In the first half of 2018 XTB recorded an increase in revenues on the main markets, i.e. in Central and Eastern Europe and Western Europe, by 108,4% and 24,0% y/y, respectively. During reporting period, Poland with shares amounted to 32,3% in the sales structure, recorded PLN 64,0 million of revenues, i.e. increased by 162,2% y/y. The second, Spanish market (15,0%) in terms of shares completed the first half of this year sales at the level PLN 29,7 million. Latin America is also gaining on importance, which has already replaced gap in Turkey, obtaining PLN 10,1 million of revenues, i.e. increased by 240,2% y/y.

     

     

     

    GROWING THE NUMBER OF ACTIVE RETAIL CLIENTS

     

    In the first half of 2018 Group’s revenues from retail operations amounted to PLN 186,9 million, compared to PLN 105,2 million in the corresponding period of the previous year.

     

     

    XTB has a solid basis for growth in the form of constantly growing customer base and number of active clients. In the I half of 2018 the number of new clients was 10 046 and was higher by 1 916 new clients y/y. The average number of active clients was higher by 4 390 y/y, i.e. 24,8% y/y.

     

    During the reporting period, revenues from institutional activities of XTB amounted to PLN 11,0 million, i.e. decrease by 45,4% y/y. Revenues from this segment are subject to quarterly fluctuations, which is typical of the business model adopted by the Group.

     

     

    RECORD NET PROFIT, COSTS AT A STABLE LEVEL

     

    Operating profit in the first half of 2018 amounted to PLN 115,1 million, i.e. increased by 118,5% y/y. Operating expenses, in the first half of 2018 amounted to PLN 82,8 million, i.e. 14,0% increase y/y. This increase was higher by: PLN 3,0 million of marketing costs mainly due to higher expenditures on marketing online campaigns; PLN 2,8 million of salaries and employee benefits costs mainly due to the increase in variable remuneration elements (bonuses); PLN 2,6 million of other external services costs as a result of incurring more expenditure on IT systems and licenses, legal and advisory services, internet and telecommunications; PLN 1,4 million of commission costs resulting from higher amounts paid to payment service providers through which clients deposit their funds to transaction accounts and increase by PLN 1,4 million other costs.

     

    The Management Board expects that in 2018 operating expenses should be at a level comparable (slightly higher) to that observed in the 2017. The final level will depend on the variable remuneration elements paid to employees, the level of marketing expenditures and the impact of ESMA’s product intervention on the level of revenues generated by the Group. The value of variable remuneration components will be influenced by the results of the Group. The level of marketing expenditures will depend on the impact of the results and profitability of the Group and on responsiveness of the customers to the actions taken. The impact of ESMA’s product intervention on the Group’s revenues will determine, if necessary, a revision of the cost assumptions for further quarters of this year.

     

     

    DEVELOPMENT PROSPECTS IN 2018

     

    The Group plans further development by expanding the customer base and product offer, penetrating existing markets and expanding geographically to new markets in Africa and Asia, as well as Latin America, using its presence in Belize as a starting point for expansion and business development in other countries of the region.

     

    The entry into force of product intervention by ESMA creates both opportunities and threats for XTB. On the one hand, there is a temporary drop in trade volumes among European brokers. On the other hand, the Management Board of XTB is convinced of the business’s vitality over a longer time horizon. It seems likely that clients gradually adjust their trading strategies to a lower level of financial leverage and FX/CFD market will be consolidated. Changes in regulations may make business activity unattractive for some entities, especially those focused on a quick profit and aggressive marketing strategies. Brokers with a wide range of products and an established business position, as in the case of XTB, have a chance to increase their existing market share.

     

     

  • 2018.05.10
    XTB financial results for the 1st quarter of 2018

    ALMOST DOUBLE INCREASE OF REVENUES AND A RECORD NET PROFIT, GOOD PROSPECTS FOR 2018

     

    In the first quarter of oferta pro2018, X-Trade Brokers Dom Maklerski S.A. (XTB) recorded a double growth of revenues to the level of PLN 113.7 million, as a result of the increase in turnover and transaction profitability. Operating profit increased by PLN 72.7 million, ie PLN 50.5 million y/y. The company reported a record consolidated net profit of PLN 59.5 million compared to PLN 10.6 million in the corresponding period of the previous year. In this year XTB plans to further develop the client base and product offer.

     

    – In the first quarter of 2018, we recorded almost double increase in revenues, the effect of a higher volume of client transaction trading and higher profitability per lot on all major markets of activity. The company closed the first quarter of this year, a record net profit of PLN 59.5 million. A positive financial result for the first quarter of 2018, is a good forecast for the next quarter of 2018 – comments Omar Arnaout, President of the Management Board of X-Trade Brokers DM S.A.

     

     

    DOUBLING THE REVENUES THROUGH HIGHER TRANSACTIONS VOLUME AND PROFITABILITY

     

    In the first quarter of 2018, the company’s revenues amounted to PLN 113.7 million, ie. an increase of 93.7% y/y. Doubling revenues is the result of an increase in the volume of transaction turnover of customers calculated in lots as well as profitability per lot. During the reporting period, the turnover of customers amounted to 675 thousand lots, ie. more by 135.3 thousand lots r/r, and unit profitability amounted to PLN 168, ie. an increase of 54.1% y/y.

     

     

     

    GROWTH IN THE MAIN MARKETS

     

    In the first quarter of 2018, XTB recorded an increase in revenues on the main business markets, ie. in Central and Eastern Europe and Western Europe, by 135.0% and 75.1% y/y, respectively. During the reporting period, Poland, which constitutes a 26.7% share in the sales structure, recorded PLN 30.3 million of revenues, ie. 186.0% increase y/y. The second Spanish market (18.0%) in terms of shares completed the first quarter of this year sales at the level of PLN 20.5 million, which gives a 56.4% increase y/y. Latin America, which filled the gap after Turkey, obtaining PLN 5.8 million of sales, also gains in importance in global sales.

     

     

     

    GROWING THE NUMBER OF ACTIVE RETAIL CLIENTS

     

    In the first quarter of 2018, the Group’s revenues from retail operations amounted to PLN 102.9 million, compared to PLN 44.1 million in the corresponding period of the previous year.

     

     

    – We note a systematic increase in the number of customers. In the first quarter of 2018, the number of new accounts was higher by nearly 20% y/y. The number of active accounts increased by 24% y/y to PLN 25.3 thousand and it was record-breaking in the last two years. This is the effect of an effective sales and marketing strategy and the introduction of new products, with a good situation on the financial markets – says President Omar Arnaout.

     

    During the reporting period, revenues from institutional activities of XTB amounted to PLN 10.8 million, ie a decrease by 26.1% y/y. Revenues from this segment are subject to quarterly fluctuations, which is typical of the business model adopted by the Group.

     

     

    RECORD NET PROFIT, COSTS AT A STABLE LEVEL

     

    Operating profit in the first quarter of 2018 amounted to PLN 72.7 million, ie 228.1% increase y/y. Operating expenses, during the reporting period, amounted to PLN 41.0 million, ie 12.2% increase y/y. This increase was due to increase by PLN 2.5 million costs of other external services; PLN 1.0 million costs of salaries and employee benefits and PLN 0.8 million commission expenses resulting from higher amounts paid to payment service providers, through which clients deposit their funds on transaction accounts.

     

    The Management Board expects that during the whole calender year 2018, operating expenses should be at a comparable or slightly higher level than the one from 2017. Their final level will depend on the amount of variable components of remuneration paid to employees and on the level of marketing expenses.

     

    In the first quarter of 2018, XTB recorded PLN 59.5 million of consolidated net profit compared to PLN 10.6 million profit a year earlier. This is an increase of PLN 48.9 million, ie 459.1% y/y.

     

     

    DEVELOPMENT PROSPECTS IN 2018

     

    The Group plans to further develop its client base and product offer, based on existing markets and new markets in Africa and Asia, as well as expansion in Latin America, using its presence in Belize. The Management sees the largest potential for business growth in Germany, France and Latin America.

  • 2018.04.23
    Record of the Ordinary General Meeting convened for 10 April 2018

Share price

Events Calendar

  • 2018.11.08
    Publication of Consolidated Quarterly Report for 3Q 2018
  • 2018.10.29
    Meeting with institutional investors and analytics
  • 2018.10.09
    Closed period in connection with 3Q 2018 report: 09.10.2018 – 08.11.2018
  • 2018.08.23
    Publication of Consolidated Semi-Annual Report for 1H 2018
  • 2018.07.24
    Closed period in connection with 1H 2018 report: 24.07.2018 – 23.08.2018
  • 2018.05.10
    Publication of Consolidated Quarterly Report for 1Q 2018
  • 2018.04.25
    Meeting with institutional investors and analytics
  • 2018.04.10
    Closed period in connection with 1Q 2018 report: 10.04.2018 – 10.05.2018
  • 2018.03.07
    Publication of Annual Report and Consolidated Annual Report for 2017
  • 2018.02.13
    Participation in a „Pulse of the Economy” Small & Mid Caps conference organized by WOOD & Company (Warsaw)
  • 2018.02.05
    Closed period in connection with Annual Report and Consolidated Annual Report for 2017: 05.02.2018 – 07.03.2018
XTB - Relacje Inwestorskie