XTB's Q3 Revenue Down 29.5% amid Low Market Volatility

XTB’s Q3 Revenue Down 29.5% amid Low Market Volatility

Time Stamp: October 26, 2023 2:11 PM
XTB's Q3 Revenue Down 29.5% amid Low Market Volatility PlatoBlockchain Data Intelligence. Vertical Search. Ai.

XTB has released its preliminary financial and
operating results for the third quarter, disclosing a decline
in revenue and net profit due to a drop in market volatility. The firms’ consolidated revenue also took a hit, decreasing 29.5%
year-on-year, from PLN 391.3 million to PLN 275.7 million.

The main contributor to this decrease was the low
profitability per lot, which fell from PLN 245 to PLN 137.
However, this was offset by a surge in active clients, which increased 47.1%
year-on-year. As a result, XTB’s transaction volume in CFD instruments soared to
2,011.5 thousand lots, up from 1,594.6 thousand lots in the third quarter of
2022.

CFDs based on commodities played a leading role in
the third quarter of 2023, contributing 47.7% of the total revenue on financial
instruments. These CFDs were particularly profitable due to their basis on
commodities such as oil, gold, and wheat, XTB explained.

Following closely were CFD instruments based on
indices, accounting for 25.4% of revenue, with US stock indices, including the
US 100 and US 500, leading the category. CFDs based on currency pairs
contributed 22.2% to total revenues, with the most profitable instruments stemming
from EURUSD, USDJPY, and GBPUSD currency pairs.

Additionally, XTB experienced growth in its client
base. The online investing platform has acquired 234,704 new clients since the
beginning of the year. This represents an increase of 60% from 145,826 new
clients acquired in the previous year.

XTB Expands Products and Services

XTB is a global fintech company founded in Poland in
2002. It provides individual investors access to financial markets through an
innovative online investing platform and mobile app. With over 826,000
customers worldwide, XTB offers various financial instruments, including
stocks, ETFs, CFDs on currency pairs, commodities, indices, stocks, ETFs, and
cryptocurrencies .

XTB is actively diversifying its product offerings.
During the third quarter, it introduced a passive investment product that
allows clients to build up to 10 strategies based on ETFs, each consisting of
up to 9 ETFs. This product is available in several markets, including the Czech
Republic, Slovakia, Germany, Portugal, Romania, and Italy.

Besides that, the fintech firm introduced fractional share trading with a minimum transaction value of just €10 to the UK market.
This offering provides access to over 3000 shares from 16 major global
exchanges and 300 global ETFs.

XTB has released its preliminary financial and
operating results for the third quarter, disclosing a decline
in revenue and net profit due to a drop in market volatility. The firms’ consolidated revenue also took a hit, decreasing 29.5%
year-on-year, from PLN 391.3 million to PLN 275.7 million.

The main contributor to this decrease was the low
profitability per lot, which fell from PLN 245 to PLN 137.
However, this was offset by a surge in active clients, which increased 47.1%
year-on-year. As a result, XTB’s transaction volume in CFD instruments soared to
2,011.5 thousand lots, up from 1,594.6 thousand lots in the third quarter of
2022.

CFDs based on commodities played a leading role in
the third quarter of 2023, contributing 47.7% of the total revenue on financial
instruments. These CFDs were particularly profitable due to their basis on
commodities such as oil, gold, and wheat, XTB explained.

Following closely were CFD instruments based on
indices, accounting for 25.4% of revenue, with US stock indices, including the
US 100 and US 500, leading the category. CFDs based on currency pairs
contributed 22.2% to total revenues, with the most profitable instruments stemming
from EURUSD, USDJPY, and GBPUSD currency pairs.

Additionally, XTB experienced growth in its client
base. The online investing platform has acquired 234,704 new clients since the
beginning of the year. This represents an increase of 60% from 145,826 new
clients acquired in the previous year.

XTB Expands Products and Services

XTB is a global fintech company founded in Poland in
2002. It provides individual investors access to financial markets through an
innovative online investing platform and mobile app. With over 826,000
customers worldwide, XTB offers various financial instruments, including
stocks, ETFs, CFDs on currency pairs, commodities, indices, stocks, ETFs, and
cryptocurrencies .

XTB is actively diversifying its product offerings.
During the third quarter, it introduced a passive investment product that
allows clients to build up to 10 strategies based on ETFs, each consisting of
up to 9 ETFs. This product is available in several markets, including the Czech
Republic, Slovakia, Germany, Portugal, Romania, and Italy.

Besides that, the fintech firm introduced fractional share trading with a minimum transaction value of just €10 to the UK market.
This offering provides access to over 3000 shares from 16 major global
exchanges and 300 global ETFs.

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