XTB Reports 23% Revenue Increase in Q3 2024 After Q2 Setback

XTB reports a strong Q3 2024 recovery with increased revenues and profits following a disappointing Q2 performance.

Key Points:

• XTB‘s Q3 2024 revenues reached PLN 470 million ($118 million), up 23% from Q2, with net profit at PLN 204 million ($51 million), a 27% increase.
• The company added 108,104 new clients in Q3, a 60.1% increase year-on-year, bringing the total active client base to 474,117.
• Operating expenses rose to PLN 208.5 million, up PLN 43.5 million from Q3 2023, driven by higher salaries and marketing. A 20% increase in total costs is expected for 2024.

XTB has announced a significant rebound in its preliminary results for the third quarter of 2024, following a lackluster performance in Q2. The firm’s revenues reached PLN 470 million (approximately $118 million), a 23% increase from Q2’s $96 million. Net profit surged by 27% quarter-on-quarter to PLN 204 million ($51 million), compared to $40 million in the previous quarter.

The results were disclosed after the close of trading on Wednesday, leaving investors eager to see how XTB shares will react in Thursday’s market. The company’s stock took a notable hit earlier in September, plummeting over 10% following reports that controlling shareholder Jakub Zablocki sold off $135 million in shares, reducing his stake below the 50% threshold for the first time.

XTB Reports 23% Revenue Increase in Q3 2024 After Q2 Setback

In Q3 2024, XTB reported an average monthly trading volume of $232 billion, a 12% increase from the $207 billion in Q2. Profitability per million USD transaction volume also improved, rising from 154 in Q2 to 174 in Q3.

Client acquisition figures reflect a robust growth trajectory. XTB brought 108,104 new clients in Q3, a remarkable 60.1% increase year-on-year from 67,505 new clients. The total number of active clients soared to a record 474,117, up 68.7% from 281,101 in the same quarter of the previous year.

Revenue Breakdown by Asset Class

Examining the sources of XTB‘s revenue, CFDs based on indices accounted for the largest share at 44.9%, a significant rise from 25.4% in Q3 2023. Strong performance in CFD instruments linked to major indices like the US 100, the German DAX (DE40), and the US 500 drove this increase. CFDs based on commodities followed, contributing 38.2% to total revenues, declining from 47.7% the previous year. Revenues from currency-based CFDs represented 14.6%, down from 22.2% in the previous year, with Bitcoin, the EURUSD pair, and Ethereum emerging as the most lucrative instruments in this category.

Operating Expenses on the Rise

XTB‘s operating expenses for the third quarter totaled PLN 208.5 million, an increase of PLN 43.5 million from PLN 165.0 million in Q3 2023. Key drivers of this rise included:

• Salaries and Employee Benefits: Up by PLN 16.1 million, attributed to increased staff numbers.
• Marketing Costs: Grew by PLN 13.0 million, driven by the launch of a new marketing campaign featuring brand ambassador Zlatan Ibrahimović.
• Commission Costs: Rose by PLN 10.1 million due to higher payouts to payment service providers.
• Other External Services: Increased by PLN 4.3 million, largely because of rising IT systems and license expenses.

Management anticipates that total operating costs 2024 could rise by around 20% compared to 2023 as the company prioritizes client growth and brand development.

XTB‘s Q3 results indicate a strong recovery from the previous quarter, underscoring the broker’s ability to adapt and grow despite recent challenges. With a solid increase in revenues, profits, and client numbers, the company is poised for continued expansion in retail trading as it invests in its operational capabilities and brand presence. As trading resumes, investors will watch the stock’s performance in light of these latest figures.

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