Polish FX Broker, XTB Witnesses Weak Financial Performance in Q4,2018, Revenue Slides by Over 44%

Karthik Subramanian

Karthik Subramanian has been a professional trader and fund manager over the last 18 years. He is basically a software developer who made the transition to financial domain around 18 years back as the attractiveness of the financial markets proved too much for him. He lives in Chennai in India along with his wife and son. He began his career as a software developer in 1999 and then gradually moved into the financial industry as he began trading stocks in his pastime. He then moved into the financial markets full time and then shifted his focus to the FX markets due to the liquid nature of these markets. Since then, he has been trading FX diligently and his favourite pair are the EURUSD and EURJPY. Over the last couple of years, he has found blockchain to be of high interest and considering his background in software and finance, he has since assembled a team of highly talented developers who have since worked on a variety of projects like crypto exchanges and blockchain architecturing. Now, he balances his time between trading and commenting on both the FX and crypto markets. He has worked with many publications including FX Street and Finance Magnates, which has helped him gain experience and also recognition across the industry. He loves to write and this passion has helped him to reach out across the FX and crypto industry. Right now, he works on his pet projects in the FX and crypto industry and spends his time writing and managing his blockchain team and helping it to reach higher.

Polish FX Broker, XTB Witnesses Weak Financial Performance in Q4,2018, Revenue Slides by Over 44%

February 11, 2019

q4Publicly-listed Polish FX and CFD broker, X-Trade Brokers has released its preliminary Q4, 2018 and full fiscal year 2018 financial results, showing missing estimates and a huge drop in revenue.

In the final quarter of 2018, the decline was reported in both revenue and net income, but according to the latest preliminary report, key components of the business showed positive year-on-year growth.

In the fourth quarter of 2018, the total operating revenue during the period came in at $11.23 million (PLN 42.7 million), which is 44 per cent lower from over $20 million (PLN 76 million) in Q4, 2017. However, on a yearly basis, the total full-year revenue came in at $75.7 million ‎(PLN 288.3 million)‎, a gain of 5 per cent compared to PLN 274.6 million in the previous fiscal year. But, in dollar terms, due to the impact of foreign exchange rate changes the figure is lower year-over-year from over $82 million reported in fiscal 2017. 

In terms of net profits during the final quarter of 2018, it dropped to $1.18 million (PLN 4.49 million), which is seven-times lower than what was posted in Q4, 2017 which was at PLN 37.6 million. On the yearly timeframe, the weak performance in Q4 is managed by the strong performance in the rest of 2018 and posted a net profit of $26.8 million (PLN 101.99 million), up nearly 10 per cent compared to PLN 92.9 million in the year prior. Apart from the local currency devaluation, the net profit is nearly $27.8 million lower compared to a year ago.

In terms of the average number of active accounts in Q4, 2018, the figure dropped during the quarter with only 20,568 active accounts, slightly down from 20,909 in Q4, 2017. New accounts were also down, falling 15.7 per cent lower year-over-year to 13,930 in Q4, 2018, to 16,530 accounts in Q4, 2017.

In the third quarter, XTB’s Q3 result was adjusted to reflect a one-off event, which was a result of the imposition of an administrative fine by the Polish Financial Supervision Authority (KNF). The regulatory agency imposed a penalty of PLN 9.9 million ($2.7 million) for “irregularities in the execution of client orders”, as per the statement from the regulator. 

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