XTB has released preliminary financial results for 2023, highlighting a surge of 51% in active clients, which increased 311,971. The company defied market volatility and inflationary pressures to post a year-over-year (YoY) increase of 3% in net profit to PLN 791.3 million.
XTB reported a YoY boost of 10% in revenue, reaching PLN 1,588.2 million. The driving forces behind this upturn were the heightened volatility in financial and commodity markets and the substantial expansion in clientele. XTB's CFD contracts concluded in lots rose 16.5% YoY, contributing to a transaction volume of 7.4165 million lots. Notably, the profitability per lot was PLN 214, slightly lower than the previous year's PLN 227.
XTB's Revenue and Shifting Dynamics
The fourth quarter of 2023 stood out with a staggering YoY increase of 127.7% in revenue, totaling PLN 493.6 million. This surge was fueled by higher profitability per lot and increased client turnover, especially in CFD instruments. The quarter witnessed distinct trends, influencing a substantial rise in revenue.
Examining revenue sources, CFDs based on indices took the lead, constituting 47.8% of total revenues. Commodities followed closely at 39.9%, while currency-based CFDs accounted for 10.1%. This shift in revenue distribution reflected the profitability of instruments tied to indices like the US 100, German DAX, and US 500, as well as commodities such as natural gas, gold, and oil.
Operating costs in 2023 amounted to PLN 693.6 million, witnessing a notable increase of PLN 135.0 million from the previous year. This rise was primarily attributed to increased remuneration, marketing expenses, and external services. Despite these costs, XTB's client base flourished, reaching a record-breaking 311,971 new clients, an increase of 58.5% from the previous year.
XTB Eyes Social Trading
XTB's commitment to enhancing client experience was evident through the introduction of fractional shares, enabling investment in selected markets at a fraction of the price. Another noteworthy feature introduced in November 2023 was interest on free funds in client accounts, supporting daily account growth for currencies like PLN, EUR, USD, GBP, CZK, and RON.
In 2024, XTB's objectives include the introduction of social trading, offering clients the opportunity to follow and learn from other users' investment strategies. The firm's Board aims to acquire 65-90 thousand new clients per quarter, with a strong start in January, acquiring 27.3 thousand new clients.
This offering will enable clients with instant local payments , transfers, card transactions, and currency exchange, facilitating real-time finance control and expense management.
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