XTB has released preliminary financial results for the first quarter of 2024, highlighting an increase in revenue, the number of active clients, and a break-even figure in net profit. Despite challenges in the global markets, XTB attracted 129,700 new clients, representing an year-on-year (YoY) upsurge of 24.5%. The average number of active clients jumped 45.5% YoY to 378,476. According to the firm, this expansion boosted consolidated net profit to PLN 302.7 million.

Revenue and Market Trends

XTB's revenue for the first quarter expanded 3% to PLN 556 million, partly driven by high market volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term. Notably, revenue from CFDs based on commodities accounted for 48.7% of the total revenue, followed by CFDs based on indices and currencies. The company's net profit was PLN 302 million, the same as that of the first quarter of last year.

Additionally, XTB experienced an increase in operating expenses. This was primarily attributed to higher remuneration and commission costs. The company plans to acquire 65-90 thousand new clients per quarter in 2024. Following the positive financial report, XTB plans to recommend dividends ranging from 50% to 100% of net profit.

The firm is expanding its presence in non-European markets, focusing on potential mergers and acquisitions. It aims to obtain the necessary licenses and commence operations in Brazil and Indonesia in 2024. Last month, Finance Magnates reported that XTB had acquired 90% of the shares of the derivatives broker Eagel Capital Futures to become a "gateway to Asia."

XTB's Record Dividend Payout

Recently, XTB recommended an unprecedented dividend payout of PLN 5.02 per share, amounting to over PLN 590 million ($146 million). This payout represents the highest portion of profit distributed among shareholders in the company's history.

XTB's Management Board made the recommendation to allocate 75% of the company's net profit for 2023, totaling PLN 787 million ($195 million), towards dividend payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term. With a proposed record date of 5 June 2024 and a payment date of 20 June 2024, shareholders anticipate substantial returns on their investments.

In response to this news, XTB's shares surged to historic highs on the Warsaw Stock Exchange. They briefly gained almost 2%, setting a new high at PLN 62.30.