XTB Hits Record $938M Revenue, Q2 Profit Drop

XTB reports record H1 2024 revenue of $938M despite a sharp Q2 profit drop. The company plans new products and expansion into Brazil and Indonesia.

Key Points

• XTB’s H1 2024 revenue hits a record $938.1 million, a 12.9% increase year-over-year.
• Q2 2024 net profit drops nearly 50% to $40 million, casting a shadow over the solid start for the year.

XTB has reported record-breaking revenue for the first half of 2024, underscoring the firm’s significant growth across key metrics. Despite the impressive figures, the company’s second-quarter results fell sharply compared to the year’s first quarter.

For the first half of 2024, XTB achieved a consolidated revenue of $938.1 million, marking a 12.9% increase year-over-year. Net profit also saw a notable rise of 10%, reaching $463.0 million. The firm’s client base expanded dramatically, with 232,300 new clients joining, pushing the total number to 1.11 million.

XTB Hits Record $938M Revenue, Q2 Profit Drop

Paweł Szejko, XTB‘s Chief Financial Officer and Management Board Member highlighted the company’s achievements, stating, “The first half of the year is record-breaking in many respects. In just six months, we generated more revenue than in the entire year of 2020 or 2021, reflecting the scale of XTB‘s growth.”

However, the second quarter presented a stark contrast to the strong performance in the first quarter. From April to June, net profit plummeted nearly 50% to PLN 160 million ($40 million), down from PLN 303 million ($77 million) reported in the year’s first three months.

Despite this decline, XTB‘s active client numbers remained robust, reaching 462,771, a significant increase of over 50% compared to the same period in 2023.

From CFD Broker to Universal Investment App

XTB‘s trading volume in CFD contracts rose 8.7% to 3.93 million lots, with profitability per lot increasing by 3.9% to $239. Commodity-based CFDs proved the most lucrative, contributing 48.2% to revenue, followed by index-based CFDs at 37.2%.

The company is transitioning from a CFD broker to a comprehensive investment app. Approximately 80% of new clients begin by investing in stocks, ETFs, or setting up Investment Plans. Net deposits more than doubled to $3.80 billion, reflecting increased 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, which contributed 37.2% to the financial instruments revenue structure, compared to 51.8% a year earlier,” the report noted.

Looking Ahead: New Products and Expansion

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

The company also focuses on international expansion, with plans to enter the Brazilian and Indonesian markets. XTB expects to begin operations in Indonesia in early 2025 and is currently working on obtaining licensing in Brazil, aiming for completion within the same year.

XTB has signed a new brand ambassador as part of its global marketing strategy. Commercials featuring the individual will air later this year.

XTB‘s impressive growth and strategic initiatives highlight its evolution and ambition as it seeks to solidify its position in the global trading and investment landscape.

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