XTB’s shares hit all-time low after disappointing H1 2016 results

XTB’s shares hit all-time low after disappointing H1 2016 results

- in All News, Featured News, Forex Brokers
xtb-logo-850

Polish forex brokerage X-Trade Brokers, trading as XTB, saw on Wednesday its shares reaching their all-time lowest price of PLN 10.93 a day after it announced disappointing financial and trading results for the first half of 2016, data from the Warsaw Stock Exchange (WSE) indicated.

The broker’s shares closed on Tuesday at PLN 13.34 and opened on Wednesday 9.67% lower at PLN 12.05. However, during the day, they hit a historic lowest, lower even from the IPO price of PLN 11.5.

xtb-stock-price-drop

The broker’s net profit declined in H1 2016 on the back of lower trading volumes. It posted a net profit of PLN 23 million in H1 2016, posting a drop of 55% compared to the same period a year earlier.

Operating revenue fell 12% over the year to nearly PLN 113.9 million in the January-June period. Meanwhile, operating expenses increased 46% year-on-year to PLN 95.2 million in the six months under review.

The broker’s trading volume in the retail and institutional segment stood at 1,058,309 in the first six months of the year. The figure is 15.8% below the value reported a year earlier.

XTB said its results in the second quarter were primarily shaped from the so-called range trading where traders buy when prices are at lower support levels and sell when prices are at upper resistance levels.

The average number of active trading accounts the broker handled in the first half of the year went up by an annual 10.1% to 16,305. Meanwhile, the total number of XTB accounts jumped 25.7% to 139,209 in the period under review. The broker’s clients had net deposited funds with XTB in the combined amount of nearly PLN 136.6 million in H1, which is 6.3% below that a year earlier.

XTB debuted on the WSE in early May 2016 with the release of some 117.4 million shares. Currently, the broker’s market capitalization stands at PLN 1.31 billion.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may also like

Poland’s KNF warns of BitBay, Abucoins exchanges, pays for YouTube smear campaign against cryptos

The Polish Financial Supervision Authority (KNF) has issued