Record quarter at XTB:
- Consolidated net profit in the first quarter of 2023: EUR 64.4 mm, 19.9% more than in the corresponding period of the previous year;
- The total number of clients increased by 46.1% y/y, reaching 703.9 thousand;
- Increase in the volume of trading of clients on CFD instruments by 18.2% y/y - from 1.56 million to 1.85 million lots;
- Intensification of clients acquisition and marketing activities.
XTB has just published its preliminary financial results for the first quarter of 2023. During this period, XTB generated a record-breaking consolidated quarterly net profit in the history of the company: EUR 64.4 mm. Significant factors influencing the level of XTB's results in the first quarter of 2023 were the persistent high volatility on the financial and commodity markets, caused, inter alia, by constantly tense geopolitical situation or banking crisis. Moreover, marketing activities had an undoubted impact which resulted in a significant increase in the number of clients and theirs high transactional activities.
Under these conditions, in the first quarter of 2023 XTB generated a net profit of EUR 64.4 mm compared to EUR 54.4 mm a year before. This means an increase by EUR 10.0 mm. 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).
In the first quarter, XTB acquired 104.2 thousand new clients, which means an increase in their total number to 703.9 thousand compared with 481.9 thousand at the end of the first quarter of the previous year. Particularly noteworthy is the increase in the number of active clients. In the first quarter, it amounted to 215.7K compared with 149.8K in Q1 2022. This 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).
- 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 - comments Omar Arnaout, CEO of XTB.
When it comes to XTB's revenues in terms of the classes of instruments responsible for their creation, in the first quarter of 2023 CFDs based on commodities were in the lead. Their share in the structure of revenues from financial instruments reached 48.8% compared to 30.2% a year earlier. In this case, the most profitable instruments in CFDs based on commodities were those based on natural gas and gold prices. 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.
The operating costs in the first quarter of 2023 amounted to EUR 39.2 mm and were by EUR 11.0 mm higher than in the corresponding period of the previous year (EUR 28.2 mm in the first quarter of 2022). The most important changes were recorded in marketing costs, where there was an increase by EUR 6.4 mm, mainly due to higher expenditure on marketing campaigns carried out intensively in the first quarter. Due to the dynamic development of the company, and thus the increase in employment, an increase by EUR 3.5 mm was also recorded in the costs of remuneration and employee benefits.
- 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 - comments Omar Arnaout.
