- Record consolidated revenue of PLN 938.1 million (+12.9% YoY)
- Consolidated net profit rose to PLN 463.0 million (+10.0% YoY), despite increased marketing expenditures and rising employment costs
- Number of new customers grew by 232.3 thousand (+38.9% YoY) while the number of active customers sharply increased to 462.7 thousand (+50.5% YoY) by the end of H1 2024
- High volatility in financial markets and trends observed in Q2 resulted in a higher transaction activity among customers. The number of CFD contracts in lots increased by 8.7% YoY to 3.93 million lots, with a return per lot reaching PLN 239 (+3.9% YoY)
- XTB continues its transition from a CFD broker into a universal investment app, which will eventually become the main choice for customers in Europe
- In line with earlier announcements, XTB is working on expanding its offering with bonds, IKE accounts, and a virtual wallet with a multi-currency card, which will appear later this year
- As part of its marketing activities aimed at strengthening its global brand recognition, XTB signed a contract with a new ambassador, and commercials featuring him will appear later this year
In H1 2024, XTB achieved a record operating revenue of PLN 938.1 million (H1 2023: PLN 830.7 million), while the net profit totaled PLN 463.0 million, compared to PLN 421.0 million a year earlier. This demonstrates that the company can generate steadily growing net income despite rising costs, which increased by PLN 68.8 million to PLN 410.4 million in the first half of the year. The rise is associated with the company’s dynamic development and is mainly due to increased marketing expenses, higher employee costs, and commissions paid to payment service providers through which customers deposit their funds into transaction accounts.
Analyzing XTB’s revenues in terms of the classes of instruments responsible for their generation, it can be said that the most profitable asset class were CFDs based on commodities – accounting for 48.2% of revenue structure (vs. 38.5% in H1 2023). This is a result, for instance, of high revenues from CFD instruments based on gold, natural gas, and cocoa prices. The second most profitable asset class were CFD instruments based on indices, which accounted for 37.2% of the revenue structure, down from 51.8% a year earlier. This is a result of high profits on CFD instruments based on the US 100 index, the German DAX (DE40) index, and the US 500 index. Revenues from CFD instruments based on currencies constituted 10.3% of all revenues, up from 7.7% a year earlier. The most profitable financial instruments in this class were CFD instruments based on the cryptocurrency bitcoin, the currency pair USDJPY, and the cryptocurrency ethereum.
Paweł Szejko, CFO and Board Member of XTB, commented, “The first half of the year is record-breaking in many respects. In six months of this year, we generated more revenues than in all of 2020 or 2021, which shows the scale of XTB’s growth in recent years. This is evidence that our business model is working like a well-oiled machine, allowing the company to generate repeatable, growing results. We are particularly pleased with the 50% increase in the number of active customers – this is proof that interest in investing, whether passively or actively, is steadily growing. This is a good prognostic for us in the context of planned launch of retirement products at the end of the year.”
Sharp increase in number of customers and their investment activities
In the first half of 2024, XTB attracted 232.3 thousand new customers, well above the quarterly goal of 65-90 thousand additional customers. At the end of June, a total of 1.11 million customers used XTB’s investment platform and mobile application, compared to 762.6 thousand at the end of June the previous year. In July 2024, another 36.2 thousand new investors joined XTB.
The number of active customers also increased sharply – in H1 it reached 462.7 thousand compared to 307.5 thousand at the end of the first half of 2023. This translated into an increase in the volume of customer turnover in CFD instruments in lots – in H1 2024, it increased to 3.93 million transactions from 3.61 million in the same period in 2023 (an increase of 8.7%). The return per lot in H1 2024 increased by 3.9% to PLN 239.
Transformation into a universal investment app
XTB continues its transition from a CFD broker to a universal investment app, which will eventually become the main choice for customers in Europe by offering efficient ways to trade, invest and save, while also providing instant access to money. This transition is evident in the preferences of new customers, almost 80% of whom start investing with the purchase of stocks, ETFs, or creating their own Investment Plans.
After XTB offered its customers interest on their free funds, the value of net deposits increased by 111% to reach PLN 3.80 billion at the end of the first half of 2024 compared to PLN 1.80 billion a year earlier.
Product plans and foreign expansion
In line with earlier announcements, XTB is actively working on enriching its product portfolio, which will allow reaching a larger number of potential customers. By the end of September, passive investors will be able to invest in treasury and corporate bonds issued by countries such as Poland, USA, and Germany, and reputable, global companies with a relatively stable rating (from AAA to BBB-). Thanks to fractional investing, bonds can be purchased from small amounts.
The end of Q3 and the start of Q4 2024 marks the planned debut of a product long-awaited by Polish investors – the Individual Retirement Account (IKE). Due to the growing interest in long-term investing, the offer of retirement products will also be developed in other markets, including the UK, where XTB has already obtained an ISA Manager license.
The end of the year will be especially intense in terms of new products – a virtual wallet with a multi-currency card will be added to the offer, enabling customers using the XTB mobile application to make payments and money transfers, card transactions, and currency exchanges.
In 2025 and in the following years, XTB plans to further expand its product portfolio.
XTB is also actively working on obtaining the necessary licenses and permits and preparing the technological infrastructure for starting operations in Brazil and Indonesia. According to the assumptions, the company’s operations in Indonesia can start at the beginning of 2025. The company is currently in the process of obtaining a license in Brazil. As expected, this process may also continue until 2025.
Source: https://ceo.com.pl/wstepne-wyniki-xtb-za-1-polrocze-2024-r-56526
