XTB’s Q1 2016 net profit drops 36% YOY, rises over the quarter

XTB’s Q1 2016 net profit drops 36% YOY, rises over the quarter

- in All News, Forex Brokers
GPW-xtb debut cropped

The Polish online forex brokerage group X Trade Brokers Dom Maklerski (XTB) (WSE:XTB), which recently debuted on the Warsaw stock exchange, has reported a Q1 2016 operating revenue of PLN 82.8 million ($21.4 million). Compared to the same quarter of last year, it posts a 13.3% decline. The net profit also dropped to PLN 31.9 million ($8.12 million), down nearly 36% from the PLN 49.8 million in Q1 2015.

The company explains the decrease with the high market volatility in the beginning of 2015, provoked by the ECB monetary policies, but mostly by the release of the Swiss franc against the euro, which caused problems to many forex traders but brought profits to the brokers.

In spite the yearly drop, however, XTB’s net profit was still 7.1% higher than the average quarterly result for 2015 and higher than the fourth quarter of last year.

According to the XTB report, in Q1 2016, the average number of active retail accounts rose by more than a 1000 from 15045 the end of December 2015 to 16052 in the end of this March. The company attributes the increase to the offering of new instruments and the improvement of its services.

The group’s institutional business segment (the X Open Hub multi-asset institutional liquidity provider) saw a 103.5% increase of its quarterly net profits over the year to PLN 8 million ($2.04 million).

Just 10 days after its IPO on May 6, XTB ranked seventh among the publicly traded forex brokers with a market capitalization of  PLN 1.46 billion. A week later its stock price continues its upward motion. On market open on May 19 the XTB stock cost PLN13.30 and the company had a market capitalization of PLN 1.62 billion ($412.6 million).

XTB was founded in 2002 and is now established in more than 15 countries in Europe, South America and Asia. It is the leading forex broker in Central and Eastern Europe. The broker provides online trading in over 1500 instruments, including forex, indices, shares, commodities and ETFs. It offers three types of live trading accounts and does not require a minimum deposit. Trading can be done on two platforms – the MetaTrader 4 and the broker’s proprietary xStation. The broker’s various subsidiaries are regulated by UK’s Financial Conduct Authority (FCA) and Poland’s financial supervision commission (KNF).

In 2015 the broker posted a 54% rise in its net profit to PLN 119 million ($31.9 million) and a 38% increase in revenue to PLN 283 million ($75.8 million).

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