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  • 2017.08.24
    XTB financial results for the 1st half of 2017

    In the I half of 2017 consolidated operating profit (EBIT) increased by PLN 34.1 million, i.e. 183.0%, and reached PLN 52.7 million in comparison to PLN 18.6 million as compared to the same period of the previous year. Net profit was PLN 29.4 million, compared to PLN 23.0 million in a previous year. That’s an increase of 27.8%.

     

    The net result for the I half of 2017 was mainly shaped by the following factors:

     

    1. 1) 183,0% increase in operating result (EBIT) due to:

     

    1. a) the increase of 10.0% in operating income due to higher profitability per lot;

     

    1. b) improved cost-effectiveness, showing a decrease by PLN 22.7 million in operating costs;

     

    1. 2) factors not related to core operational activities, ie:

     

    1. a) creation of impairment write-down of separate intangible assets in the form of a brokerage license in the Turkish market in amount of PLN 5.6 million;

     

    1. b) occurrence of negative exchange rate differences (finance costs) in the amount of PLN 12.2 million (I half of 2016: PLN 2.9 million) as a result of zloty strengthening against other currencies.

     

    Operating revenues increased by 10.0% and reached PLN 125.2 million in the I half of 2017 in comparison to PLN 113.8 million as compared to the previous year. From the structural side they have been shaped by an increase in profitability per lot with a comparable volume of transaction in CFD instruments in lots.

     

     

    The XTB has a stable foundation for future growth in the form of a growing customer base. In the II quarter of 2017, the number of new accounts was the same as in the IV quarter of 2016, while in the I quarter of this year The Group reached the record number of new accounts. The total number of new accounts in the I half of 2017 increased by 68.3% over the comparable period. The average number of active accounts in the first half of 2017 amounted to 20 016, an increase by 22.8% y/y.

     

     

    According to the Management Board, in the coming months a significant portion of XTB branches should maintain the increasing rate number of accounts that observed in 2017. Germany, France and Latin America have the biggest potential for business growth. Increasing accounts is not only the result of an optimized sales and marketing strategy, but also the result of product and technology development. The management continues to see great potential in technology and product development, which should help XTB expand its customer base and reach customers who have not previously been the Group’s main target customers.

     

    Looking at the revenue structure for the classes of instruments responsible for their origins, we see that more than half of revenue was generated on CFDs based on stock indices. The most important of these are CFD based on German and American stock indices (DE30, US500, US100, US30). Looking at the structure in greater detail, it can be seen that the increase in revenues is primarily attributable to CFDs on currencies.

     

     

    Geographically, XTB revenues were well diversified. Their growth has occurred in both Central and Eastern Europe and Western Europe. Countries where the Group derives more than 15% of its revenues each are: Spain (23.0%, decrease of share from 25.5%) and Poland (19.4%, decrease of share from 23.4%). The share of other countries in the geographic structure of revenues does not exceed in any case 15%. Latin America is also gaining on global relevance.

     

     

    In the I half of 2017, XTB managed to significantly improve cost-effectiveness compared to the same period of the previous year, while maintaining growth in number of new accounts and number of active accounts. Operating expenses in the first half of 2017 amounted to PLN 72.5 million, a decrease by 23.8% y/y. This decrease was attributed to the lower by PLN 18.6 million y/y in marketing costs, mainly due to lower spending on advertising campaigns.

     

     

    The Management Board expects that in the II half of 2017 operating costs should be at a level comparable to that of the I half of 2017. The final level of operating expenses will depend on the variable remuneration components paid to employees and the level of marketing expenditure. The amount of variable remuneration components will influence the results of the Group. The level of marketing expenditures will depend of their impact on the performance and profitability of the Group and on the responsiveness of customers to the actions taken.

     

    Take a decision on the Turkish subsidiary X Trade Brokers Menkul Değerler A.Ş. (Current report no. 15/2017) required the establishment of a write-down of the value of a separate intangible asset in the consolidated financial statements for the I half of 2017 in the form of a brokerage license for the Turkish market of approx. PLN 5.6 million.

     

    The XTB Group operates in the international markets, whereby it owns cash in different currencies. This results in foreign exchange, positive and negative exchange rates occurring during the reporting periods. Due to significant zloty appreciation in the I half of 2017, the Group recorded negative exchange differences (financial expenses) in the amount of PLN 12.2 million (I half of 2016: PLN 2.9 million).

     

    The current regulatory changes in the industry at national and international level may change its face in the long run. On the one hand, the European Securities and Markets Authority (ESMA) published on 29 June this year statement regarding possible product interventions for CFDs, binary options and other highly speculative financial products that would take place under MIFIR. In a statement, ESMA informed that Limiting the level of leverage, banning the offering of bonuses, introducing the protection against negative balance and restrictions on advertising and promotion. According to ESMA, the product interval would enter into force at the earliest January 3, 2018. On the other hand, in Poland in July this year, The draft amendment to the Act on the Amendment to the Financial Market Supervision Act and a number of other statutes has been published to show that the government is planning to reduce the maximum leverage to 1:25 for FX / CFD investors.

     

    The proposed restrictions on the FX/CFD market are aimed at protecting retail investors primarily against market abuse, which undermined trust in the entire securities and securities industry. In the opinion of the Company, as regards the Polish market from which the Group currently achieves 19.4% of its revenues, it will be crucial to ensure uniform operating conditions for all market participants so that legislative actions do not harm Polish investors by supporting the development of the grey market of foreign entities, where the domestic investor will look for products that are optimal for his investment portfolio. Introducing the proposed one-sided restrictions for the domestic FX/CFD industry while neglecting the actions of foreign entities will be detrimental to the Polish client and the entire market. It should be noted that we are currently dealing with a project, which is not clear with the mere adoption of the changes in the shape presented in it. The legacy of our parliamentary legislative experience (e.g. with regard to the final determination of MAR sanctions) shows that, as part of the work on the project, it has undergone another change, evolving to a final version that has not always been concise and accurate. With the originally announced project. At this moment it is therefore not at all determined that the proposed changes will be enacted and will become effective.

     

    The above-described market environment is for XTB as an internationally traded entity with a well-diversified geographical revenue base and stable operating fundamentals, an opportunity to consolidate the industry at national and international level. The XTB board sees one of the Group’s development directions.

     

    In addition, the Company’s current management plans for the forthcoming periods assume accelerated development of the Group, in particular by expanding the client base, further penetrating existing markets, and accelerating geographical expansion into Latin American markets.

     

  • 2017.05.15
    XTB financial results for the 1st quarter of 2017

    X-Trade Brokers reported a consolidated net profit of PLN 10.6 million in the I quarter of 2017, compared to PLN 31.9 million in a previous year. Operating profit was PLN 22.2 million in comparison to  PLN 42.3 million as compared to the same period of the previous year. Average number of active accounts increased by 26.9%.

     

    The net result for the I quarter of 2017 was mainly shaped by the following factors:

     

    • 1) the decrease in revenues resulting from lower profitability per lot – the high volatility of revenue in the short term, such as the quarter, is typical for the XTB business model;

     

    • 2) improved cost-effectiveness, showing a decrease in operating costs, with simultaneous increase in the number of accounts and the number of active accounts;

     

    • 3) occurrence of negative exchange rate differences (finance costs) in the amount of PLN 12.6 million (I quarter of 2016: PLN 4.3 million) as a result of zloty strengthening against other currencies.

     

    Operating revenues reached PLN 58.7 million in the I quarter of 2017  in comparison to PLN 82.8 million as compared to the previous year. From the structural side they have been shaped, on the one hand, by the greater trading activity of customers, which is reflected in the increase in the volume of turnover calculated in lots, and on the other hand, the decrease in profitability per lot.

     

     

    One factor influencing the increase of turnover in lots, in addition to the external factors that the Group has no influence on, is the continued expansion of the customer base by the XTB Board, particularly through further penetration of existing markets. Similarly as in previous periods, the number of new accounts and the average number of active accounts increased from quarter to quarter.

     

     

    The decrease in profitability per lot results from the characteristics of the XTB Group’s business model, which is characterized by high revenue volatility in a short term. It causes that profitability per lot in particular quarters may be subject to significant fluctuations. It’s visible based on the results for 2016. The longer the analysis horizon (eg. the financial year), the more stable the results are.

     

     

    In the first quarter of 2017, the profitability per lot of PLN 109 can be considered close to historical annual profitabilities.

     

    Taking into account the structure of income by classes of instruments, in the I quarter of 2017 CFD instruments based on stock indices were particularly attractive. The most important of these are CFD instruments based on German and American stock indices (DE30, US500, US30, US100).

     

     

    In the first quarter of this year the markets continued the upward trends that began at the end of 2016, but not as strong as in the IV quarter of 2016. The range of CFD movement on DE30 (German index DAX-based instrument) reached around 8% in the I quarter of 2017, in comparison to approx. 15% in the IV quarter of 2016. So the scale of movement was significantly lower, which translated into a revenue decrease in the I quarter of 2017.

     

    A significant part of the Group’s revenue were also transactions on instruments based on Turkish lira. This was due to continued weakening of the currency to record levels, particularly in January of 2017. Also turnover on pairs with TRY turned out to be important, and increased by 136% and 218% in comparison to the previous and I quarter of 2016, respectively. Such a sharp turnover increase took place even before the introduction of new regulations in Turkey on 10 February 2017.

     

    The top ten most profitable instruments complement the EURUSD, GBPUSD, AUDUSD and VOLX (instrument based ov volatility index). USD currency pairs showed a slight correction against the strong strengthening at the end of 2016. These movements were not as strong as in the I and IV quarter of 2016, when the price movement on the EURUSD instrument was around 7%. In the I quarter of 2017, this range was less than 5%, which translated into a decrease in revenues of EURUSD by approximately 80% compared to the two previously discussed quarters.

     

    Operating expenses in the I quarter of 2017 amounted to PLN 36.6 million, which represents a decrease by PLN 3.9 million, i.e. almost 10% in comparison to the corresponding period of the previous year.

     

    Operating expenses decrease resulted mainly from lower salaries and employee benefits costs by PLN 3.9 million y/y due to: 1) a decrease in the cost of variable remuneration components (bonuses) by PLN 2.7 million; 2) decrease in average employment in the Group from 406 to 387 persons y/y, which translated into total savings in the amount of PLN 1.2 million.

     

    The Management Board expects that total operating expenses will be lower in 2017 than in 2016. On a quarterly basis, they may be comparable to those of I or IV quarter of 2016. This decline should mainly result of lower marketing costs. The final level of operating expenses will depend on the variable remuneration components paid to employees and the level of marketing expenditure. The amount of variable remuneration components will be influenced by the results of the Group. The level of marketing expenditures will depend on their impact on the performance and profitability of the Group and on the responsiveness of customers to the actions taken.

     

    The XTB Group operates in the international markets which requires having cash in a variety of foreign currencies. This results in occurring in the reporting periods exchange rate differences, positive and negative. Due to significant zloty appreciation in the I quarter of 2017, the Group recorded negative exchange differences (finance costs) in the amount of PLN 12.6 million (I quarter of 2016: PLN 4.3 million).

     

    The Management’s plans for the upcoming periods assume to accelerate the Company’s development, in particular by expanding the client base, further penetration of existing markets and accelerating geographical expansion into Latin American markets.

     

    XTB intends to actively participate in the industry consolidation process at both national and international level. We are witnessing further regulatory changes in the industry, which with time may change the business. Some competitors have decided to withdraw from the market due to the pressure caused by implemented additional requirements and legal barriers. This concerned in particular companies with not very strong market position. The XTB board sees this as an opportunity to consolidate the market. This situation creates opportunities for XTB development and increase in the number of new accounts.

     

  • 2017.03.20
    XTB financial results for 2016

    In 2016 X- Trade Brokers Dom Maklerski recorded PLN 77,7 million of consolidated net profit, in comparison to PLN 119,0 million recorded in 2015. Only in the IV quarter the Group’s net profit has increased by 206%, i.e. to the amount of PLN 50,4 million y/y. The IV quarter was the same a record quarter for the Group in the whole 2016 reaching the levels comparable to the best quarters of the record 2015 year in the XTB history.

     

    Operating income for 2016 reached PLN 250,6 million as compared to PLN 282,5 million in 2015. Only in IV quarter the Group’s operating income reached PLN 94,0 million (PLN 57,4 million in the previous year).

     

    ‘In the IV quarter of 2016 the situation on the financial markets was favorable for XTB. We observed favorable volatility on index CFDs (based on German DAX and US DJIA and S&P500), currency pairs with USD and commodity CFDs based on gold and oil.’ – says Pawel Szejko, Member of the Management Board responsible for Finance.

     

    Year 2016 was special for us. On one hand, we have strengthened our position as one of the leading European brokers. In may we had our debut on the Warsaw Stock Exchange. Joining the companies listed on the WSE played key role as part of our strategy of building XTB’s long-term value. Transparency of our business model and finance, so important for our clients, has become another XTB’s competitive advantage. We consistently built up customers base for future growth. The number of new accounts and the average number of active accounts was increasing from quarter to quarter. On the other hand we witnessed further regulatory changes, which with time may change the business.

     

    ‘Some of the competitors took the decision to withdraw from the market because of the pressure exerted on their results due to introduction of additional restrictions and legal barriers. This applied particularly to entities with less established position on the market. We see this as an opportunity to consolidate the market. This situation creates for us opportunities to develop and to increase the number of new accounts.‘- adds Paweł Szejko.

     

    The Management Board’s plan for the upcoming periods is to accelerate the Company’s growth, in particular by expanding the customers base, development of the products offer, further penetration of existing markets and acceleration of geographic expansion into new markets. We intend to intensify our activities in Latin America in the near future. Currently, we focus on business development in Chile. We hope that in the years 2017 and 2018 our expansion in this region will speed up significantly.

     

    ‘The Management Board expects that operating expenses in 2017 will be lower than in 2016. In the quarterly view, they may reach similar levels than in the I or IV quarter of 2016. The decrease should mainly result from lower marketing costs.‘- adds Paweł Szejko.

  • 2017.01.25
    Preliminary financial results for 4Q 2016

    X-Trade Brokers reported almost 212% increase of a consolidated net profit in the IV quarter 2016 as compared to the same period of the previous year.  The net profit in this period amounted to PLN 51,4 million in comparison to PLN 16,5 million in the previous year. The IV quarter was the same a record quarter for the Group in the whole 2016 reaching the levels comparable to the best quarters of the record 2015 year in the XTB history.

     

    The Group’s operating income increased significantly and reached PLN 94,1 million in the IV quarter of 2016 in comparison to PLN 57,4 million in the previous year.

     

    “In the IV quarter 2016 the situation on the financial markets was favorable for the XTB. We observed high volatility on instruments which are relevant in our revenues structure: index CFDs (based on German DAX and US DJIA and S&P500), currency pairs with USD and commodity CFDs based on gold and oil. As a result, the Group generated PLN 94,1 million of operating income which gives an increase of PLN 36,7 million, i.e. 64% y/y.” – says Pawel Szejko, Member of the Management Board responsible for Finance.

     

    Simultaneously with the revenues increase, the operating expenses in the IV quarter 2016 declined by PLN 3,7 million, i.e. 9% y/y. The costs of salaries and employee benefits amounted to PLN 17,0 million and the marketing expenses reached a level of PLN 8,7 million.

     

    “The intention of the Management Board in the upcoming quarters is to further keep the operating expenses on the stable level, similar to that from the IV quarter 2016.” – adds Pawel Szejko.

     

    The Management’s plan for the upcoming periods is to accelerate the Company’s growth, in particular by expanding the customers base, further penetration of existing markets and acceleration of geographic expansion into new markets.

     

    XTB consistently builds up customers base for future growth. The number of new accounts and the average number of active accounts is increasing from quarter to quarter. In the IV quarter of 2016 the number of new accounts increased by 17% y/y, and the average number of active accounts by 26% y/y. The Management Board believes, that the increasing number of new and active accounts and a strong brand in combination with favourable market volatility are solid foundations for future growth.

  • 2017.01.10
    Changes in the composition of X-Trade Brokers DM S.A. Management Board

    The Supervisory Board of X-Trade Brokers Dom Maklerski S.A. at the meeting held on 10 January 2017 decided to make changes in the composition of the Company’s Management Board.

     

    Mr. Jakub Maly was dismissed from the position of the Management Board’s President.  This decision is strategic and results from the need to ensure by the Supervisory Board proper dynamic of the Company’s value growth. The Supervisory Board believes that the pace of strategic goals realization and the capital group’s development has not been sufficient so far. Therefore the Board decided to make changes in the Management Board’s composition.

     

    The Supervisory Board decided that the Management Board will consist of 5 people and  appointed Mr. Omar Arnaout (associated with XTB Group for many years, currently Regional Director of Poland, Germany, Hungary and Romania) for the position of the Member of the Management Board responsible for Sales with the rank of the Vice-President of the Management Board. Mr. Filip Kaczmarzyk (Trading Department Director since May 2015) was appointed for the position of the Management Board Member responsible for Trading.

     

    Furthermore, Mr. Jakub Leonkiewicz, Chairman of the Supervisory Board, has resigned from the participation in the Board in agreement with Mr. Jakub Zabłocki, to enable him to take over as the Chairman of the Supervisory Board. Using the statutory powers, Mr. Jakub Zabłocki, has appointed himself as the Chairman of the Supervisory Board. At the same time, under the provisions of the Commercial Companies Code, the Supervisory Board delegated Mr Jakub Zabłocki to temporarily perform the duties of the President of the Management Board from 10th January to 10th April 2017.

     

    ‘The purpose for the Management Board for the upcoming periods is to accelerate the Company’s growth  by expanding the customers base, product offering and further penetration of existing market and acceleration of geographic expansion into new markets. Moreover, the situation on the financial markets in the 4th Quarter of 2016 has been favorable for us. We have observed high volatility on instruments which are relevant in our revenues structure, such as currency pairs EUR/USD and GBP/USD as well as index CFDs instruments based on DAX, Oil and Gold’ – said Jakub Zabłocki, Chairman of the Supervisory Board and Acting President of the Management Board of X-Trade Brokers Dom Maklerski S.A. ‘Implemented changes in the Management Board and the Supervisory Board are strategic and are designed to provide both immediate intensification of development processes as well as the continuity of key operational activities of the Company until these duties are taken over by the newly appointed President of the Management Board. Thanks to this taking over the duties in the Management Board will go smoothly, and the operational activities of XTB will be carried out without any disturbance, “- adds Jakub Zabłocki.

  • 2016.11.14
    XTB financial results for the 3rd quarter of 2016

    In the 3rd quarter of 2016 X- Trade Brokers Dom Maklerski recorded PLN 4,24 million of consolidated net profit attributable to shareholders of the Parent Company, in comparison to PLN 50,94 million recorded in the same period of 2015. Profit on operating activities amounted to PLN 8,42 million as compared to PLN 60,95 million y/y. Consolidated operating income reached the level of PLN 42,80 million in the 3rd quarter of 2016 as compared to PLN 95,70 million y/y. Cumulatively for the three quarters of 2016 the Group generated the consolidated net profit attributable to shareholders of the Parent Company of PLN 27,29 million as compared to PLN 102,53 million y/y. Consolidated operating income for the three quarters reached PLN 156,62 million as compared to PLN 225,19 million y/y.

     
    The 3rd quarter of 2016, analogously to the 2nd quarter, was a period free from the unexpected and extraordinary market events or strong long-term trends. The clearly lower volatility observed in the nine-month period of 2016, in comparison to the same period of the previous year, created fewer investment opportunities to the XTB clients. As a consequence, XTB as well as its competitors with the same business profile, experienced decrease in turnover of financial instruments and hence a drop in the Group revenues.

     
    An important event in the 2016 was Brexit, i.e. voting of Great Britain on possible exit or remaining of the country within the European Union. Thanks to the precautionary actions undertaken by the financial markets, volatility on the markets caused by the referendum did not repeat the scenario from January last year, when excessive market volatility was recorded as a result of an unexpected SNB decision to discontinue the policy of defending the CHF exchange rate. Preparing to the voting, the Group raised minimal deposits on instruments exposed to sharp movements (currency pairs with GBP, European indices). This action was undertaken in order to limit the clients’ exposure to the above mentioned instruments and this goal was achieved.

     
    In spite of the limited market volatility observed during the current year (which resulted in lower average operating income per active account y/y), XTB consequently builds up clients base for future growth. The number of new accounts and average number of active accounts is growing in the subsequent quarters of 2016. In the 3rd quarter of the year the number of new accounts increased by 20% y/y and average number of active accounts increased by 10% y/y. The Management Board believes that increasing number of new and active accounts and a strong brand in combination with more favorably market volatility are solid foundations for future growth.

  • 2016.08.26
    XTB DM S.A. announces financial results for the first half year 2016

    Unlike the 2015 Swiss Franc depegging, this year’s first six months have not been influenced by unexpected market events. Regardless, results for first quarter of 2016 has remained at appropriately high level. It is the second quarter of 2016 that brought attention to the increasing complexity of client vs. market correlations. In the first three months the Group has accomplished the expected level of key performance indicators (KPI). In the institutional segment new liquidity contracts have been put into action and the spectrum of business customers enlarged. On the retail side, the performance remained at similar levels compared to the previous year. In the second quarter of 2016 the Group’s results have been influenced by the range trading, growth of markets supported by low interest rates commitment.

     

    Combination of all these factors have resulted not only in the drop of financial instruments volume traded in lots, but also in lower responsiveness to marketing activities. Growth, compared to the first half of 2015, has been 10,1% in case of active accounts and the total amount of open accounts has hit 25,6% increase. Despite this, the volume traded among our retail and business partners has dropped by 15,8%, and resulted in 6,3% decrease in total deposits. According to our retail marketing communication strategy, we have engaged in global branding campaign using an actor, Mads Mikkelsen. Admittedly, the creation of such campaign has resulted in significant increase of marketing expenses.

     

    What is more, in the second quarter of 2016 we have all witnessed historical vote of the United Kingdom, placing it onto the road of leaving the European Union. Brexit has been a very well covered and expected event on the markets, followed by the whole world, causing a market stir, but didn’t follow the same scenario as we have seen in January last year.

  • 2016.05.16
    XTB financial results for the 1st quarter of 2016

    In the 1st quarter of 2016 X-Trade Brokers Dom Maklerski S.A. („XTB”) Group generated operating income and net profit of PLN 82.8 million and PLN 31.9 million, respectively, which resulted in EBITDA margin and net profit margin reaching 52.8% and 38.5%, respectively. These very good results were generated mainly due to the increase in the average number of active accounts and high volatility on the markets recorded in January and February 2016.

     

     

    The net profit generated by the Group in the 1st quarter of 2016 was higher than the average quarterly level in 2015 by PLN 2.1 million, i.e. 7.1%. Moreover, it was higher than in the 4th quarter of 2015 and lower than in the 1st quarter of 2015, when the markets experienced more than average volatility arising, among others, from the unpegging of the exchange rate of the Swiss franc against the euro and the ECB initiating a quantitative easing (QE) programme.

     

     

    In the retail operations segment the average number of active accounts increased by more than a thousand, from 15,045 as at the end of 2015 up to 16,052 as at the end of the 1st quarter of 2016. This was, among others, due to introducing new trading instruments to the Group’s portfolio, as well as improving the quality and competitiveness of the services performed.

     

     

    In the institutional operations segment (X Open Hub) the net profit increased by 103.5%, from PLN 3.9 million in the 1st quarter of 2015 up to PLN 8.0 million in the 1st quarter of 2016. The Management Board of XTB believes that the institutional operations segment has a great growth potential and that its share in the Group’s operating income shall increase within the next few years.

  • 2016.05.06
    X-Trade Brokers DM S.A. listed on the Warsaw Stock Exchange

    X-Trade Brokers Dom Maklerski S.A. (“XTB” or the “Company”), an international provider of trading and investment products in the OTC (over-the-counter) market, has joined the group of companies listed on the main market of the Warsaw Stock Exchange.

     

    Today, at 9:00 a.m. XTB representatives hit the stock exchange bell and symbolically started trading shares of the Company on the WSE – 117,383,635 XTB shares in total had been introduced for trading on the main market of the WSE. In the initial public offering 16,433,709 shares were sold and the sale price was set at PLN 11.5 per share, which means the total value of the public offering of around PLN 189 million and the total market capitalization of XTB of around PLN 1.35 billion.

     

    Joining the group of companies listed on the Warsaw Stock Exchange is a major part of our long-term business strategy. From today on our competitive strengths, such as the state-of-the-art technology and the diversified and constantly developing range of products and services, are being joined by yet another virtue much appreciated by our clients: transparency of our business model and financials. We hope that both existing and new shareholders will follow our further growth with interest, enjoying every success increasing the company’s value – said Jakub Maly, President of the Management Board of X-Trade Brokers Dom Maklerski S.A.

  • 2016.04.18
    X-Trade Brokers IPO press conference

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