XTB Reports record quarter
Preliminary financial results for the first quarter posted EUR 64.4 mm of net profit and over 104,000 new Clients
April 27, 2023 - XTB announced its preliminary financial results for the first quarter of 2023 and revealed a record consolidated quarterly net profit of EUR 64.4 mm, 19.9% more than in the corresponding period of the previous year.
The results were acheived during a period of high volatility on the financial and commodity markets. XTB also confirmed that total clients incrased by over 46% year on year and that they acquired 104.2 thousand new clients in the first quarter bringing their total number to 703.9 thousand.
Active clients in the first quarter amounted to 215.7K compared with 149.8K in Q1 2022 which translated into an increase in the volume of trading of clients on CFD instruments expressed in lots. In Q1 it increased to 1.86 mn lots compared to 1.56 mn in the corresponding period of 2022 (increase by 18.2%). The profitability per lot in Q1 2023 was EUR 62 (Q1 2022: EUR 61).
Omar Arnaout, CEO of XTB commented: “Preliminary results for the first quarter of 2023 turned out to be record-breaking in many respects. Above all, I am pleased that we have proven the repeatability of the achieved results compared to the very good year 2022. What's more, our strategy based on expanding the customer base and continuous investment in technology and new products brings the expected results. Thanks to this, we are able to effectively use periods of volatility in financial markets.”
During the first quarter of 2023 CFDs based on commodities reached 48.8% compared to 30.2% a year earlier. The most profitable instruments in CFDs based on commodities were those based on natural gas and gold prices whilst the second most profitable asset class were CFD instruments based on indices. Their share in the structure of revenues in the first quarter of 2023 was 45.3%, compared to 57.4% in the first quarter of 2022. The most profitable instruments in this class were CFDs based on the German DAX (DE30) and US indexes - US 100 and US 500. Revenues on CFDs based on forex accounted for 4.2% of all revenues, compared to 9.4 a year earlier.
During the Q1 period, operating revenues in the first quarter of 2023 amounted to EUR 113.1 mm (in Q1 2022: EUR 94.6 mm) with operating costs at the level of EUR 39.2 mm (Q1 2022: EUR 28.2 mm).
The largest increase recorded was marketing costs which grew by EUR 6.4 mm, mainly due to higher expenditure on marketing campaigns carried out intensively in the first quarter.
Omar Arnaout, CEO of XTB commented: "In the first quarter of 2023, we focused our activities on the promotion of the capital market by engaging our ambassadors. These efforts resulted in a record number of acquired customers. However, this is not the end of our initiatives. At the same time, we launched the "Invest Responsibly" project and we are constantly investing in free educational materials for our clients. The times of the closed world of finance are passing and the market is opening up for new investors. That is why we are taking every action to lower the entry threshold for any person who would like to "challenge the market" on their own. Therefore, we have introduced a new product, Fractional Shares. At the beginning of the second quarter of this year, they debuted on the first markets and we plan to expand them to other countries soon."
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