XTB Sees Record H1 2024 Revenue but Faces Drop in Q2 Profits

XTB reports record H1 2024 revenue of $938M but faces a 50% drop in Q2 profits. Despite this, the company plans new products and global expansion.

Key Points

• Record Revenue, Profit Slump: XTB‘s H1 2024 revenue hit a record $938.1 million, but Q2 net profit dropped nearly 50% to $40 million.
• Expansion and Transformation: XTB is evolving into a broader investment platform and expanding into Brazil and Indonesia.

XTB, the publicly listed Polish retail trading company, reported record-breaking revenue of $938.1 million for the first half of 2024, marking a significant 12.9% increase year-over-year. Despite this impressive growth, the second quarter showed a stark contrast with a nearly 50% drop in net profit.

Substantial gains across various metrics marked XTB‘s first half of 2024. Consolidated revenue surged to $938.1 million, driven by a 10% rise in net profit, which reached $463.0 million. The company also witnessed an expansion in its client base, adding 232,300 new clients and bringing the total number to 1.11 million.

Paweł Szejko, XTB’s CFO and Board Member, commented, “The first half of the year is record-breaking in many respects. In just six months, we generated more revenue than in the entire years of 2020 or 2021, highlighting XTB’s rapid growth.”

However, the decline in the second quarter overshadowed the upbeat performance of the first quarter. From April to June, net profit fell to PLN 160 million ($40 million), a significant drop from PLN 303 million ($77 million) in the preceding three months. Despite this downturn, XTB maintained a robust client engagement, with active clients rising to 462,771, a 50% increase from the 307,511 recorded in the first half of 2023.

XTB Sees Record H1 2024 Revenue but Faces Drop in Q2 Profits

XTB‘s trading volume in CFD contracts increased 8.7% to 3.93 million lots, with profitability per lot rising 3.9% to $239. Commodity-based CFDs emerged as the most profitable, contributing 48.2% to revenue, followed by index-based CFDs at 37.2%.

The company is also undergoing a strategic transformation from a CFD broker to a comprehensive investment platform. Approximately 80% of new clients now engage in stock investments, ETFs, or Investment Plans. Net deposits more than doubled to $3.80 billion, reflecting a growing client base and enhanced trust.

Expansion and New Initiatives

Looking ahead, XTB is planning several new product launches, including government and corporate bond offerings in September, IKE retirement accounts for Polish investors, and a multi-currency virtual wallet by the end of the year. Additionally, the company is eyeing international expansion, with upcoming entries into the Brazilian and Indonesian markets. XTB expects to start operations in Indonesia in early 2025 while it continues the licensing process in Brazil.

To bolster its global presence, XTB has signed a new brand ambassador. Commercials featuring the individual will debut later this year.

Omar Arnaout, CEO of XTB, expressed optimism about the company’s prospects, stating, “Despite the fluctuations in quarterly results, our long-term strategy and expansion plans remain robust, positioning us for continued growth in the global market.”

XTB’s record revenue for the first half of 2024 highlights its strong market position and growth trajectory. However, the notable drop in Q2 profits underscores the company’s challenges as it navigates a period of transition and expansion. As XTB continues to innovate and expand its product offerings, it will be interesting to see how the company balances growth with profitability in the latter half of the year.

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