XTB revenues hits zł1.45 billion in 2022, Q4 earnings disappoint

Poland-based Forex and CFDs broker, XTB has reported its final results for Q4 of 2022 and the full fiscal year ending on December 31, 2022, showing one of its most successful corporate years.

Compared to a subdued performance during the previous year, XTB saw a surge in trading activity on the back of financial market volatility due to the Russia-Ukraine war. This surge has driven higher levels of customer trading activity and an increased rate of new customer acquisition.

More specifically, during Q4 of 2022, XTB disclosed a total operating revenue of PLN 216 million ($49 million), which compared well against the PLN 183 million in Q4 of 2021 or up 18 percent year-over-year.

On a quarter-over-quarter scale, however, XTB’s revenue nearly halved from an average of PLN 400 million it booked in the first three quarters.

The Q4 revenue was also offset by a surge in operating expenses which rose sizably by more than 58 percent to PLN 158 million from PLN 100 million in the previous year. As a result, XTB’s net profit dropped by 27 percent to PLN 49.9 million in Q4 2022 from the PLN 68.5 million it earned in 2021.

Taking a full-year perspective, XTB’s metrics show impressive growth in 2022 compared to the year earlier, having reported its operating revenues at $328 million, or PLN 1.44 billion. This figure was higher by 130 percent than the PLN 625 million the company reported in 2021.

The most significant change across XTB’s financial results came regarding its yearly net profit, which more than doubled to PLN 765 million from PLN 238 million a year ago.

The listed-broker noted that CFDs volumes increased to 1.7 million lots from 1.0 million a year earlier. However, profitability per lot decreased for this asset class to PLN 126 from PLN 171 in 2021.

Finally, XTB registered an increasing number of active accounts with 259,000 as of Q4 of 2022, growing from 224,000 in Q4 of 2021, or 16 percent year-over-year. Additionally, new accounts were on the uptick, increasing year-over-year to 196,864 in Q4 of 2022, relative to 189,187accounts in 2021.

XTB expects its marketing strategy to yield more clients in the year ahead, referring to its board’s ambition to acquire, on average, at least 40-60 thousand new clients per quarter.

“In the fourth quarter of 2022, which was characterized by noticeably lower volatility in the financial and commodity markets compared to the preceding quarters, especially in terms of the occurrence of long and clear trends. This change was influenced by: (i) lower per-lot profitability – a decrease by PLN 45 (from PLN 171 to PLN 126); (ii) higher clients turnover in financial instruments expressed in the number of transactions concluded in lots– increase by 646,8 thousand lots (from 1 073,5 thousand to 1 720,4 thousand lots),” the broker further explains.