Preliminary XTB Financial Results for Q3 2020

An increase in revenues and profits alongside a record number of active clients

In the third quarter of 2020, the XTB Group continued the implementation of its optimized sales and marketing strategy, including greater penetration of existing markets, gradual introduction of new products to its offering and an expansion into new geographic markets. These activities translated into an increase in revenues y/y by 129.1% (EUR 31.4 million compared to EUR 14.1 million) and in net profit by 341.1% y/y (EUR 15.4 million compared to EUR 3.6 million). In the third quarter of 2020, the Group recorded a high quarterly increase in new customers, which amounted to 21,911, compared to 10,424 a year earlier, which means an increase of 110.9%. The ratio of the average number of active clients was highest in the history of the Group and amounted to 55,760; 98.2% more than in the corresponding period of 2019.

– “The third quarter of 2020 was characterized by lower volatility than the first half of the year. Moreover, it included the holiday period, which is usually calmer on the financial markets and in relation to the activity of our clients. Despite this, we achieved very good results – both in terms of profit and new customers” – said the President of the Board of XTB, Omar Arnaout. – “We are particularly proud of the indicators related to the acquisition of new clients and the average number of active clients. A stable quarterly growing customer base will allow us not only to strengthen our global market position, but also to constitute the further development of the company. Our goal is to acquire an average of 30,000 new customers each quarter next year”.

The new offer and XTB’s global brand ambassador

The XTB Group continues to implement the overarching business goal of becoming the first choice and comprehensive solution for every investor around the world. On October 5^th, the company launched a new “0% commission” offer on stocks and ETFs for monthly volumes up to EUR 100,000 in selected European branches. XTB currently offers investing in over 2,000 real stocks from 16 of the world’s largest stock exchanges, including the New York Stock Exchange, the London Stock Exchange, the Spanish Bolsa de Madrid, the German Börse Frankfurt, and the Warsaw Stock Exchange. In addition to the stocks, XTB offers over 200 ETFs, including commodities, real estate, and bonds. XTB’s clients have access to a total of 4,500 financial instruments.

The “0% commission” offer is supported by a marketing and advertising campaign involving XTB’s new brand ambassador – one of the best football managers in the world, José Mourinho. The Portuguese coach will be XTB’s global ambassador for the next two years. The announcement of the collaboration between José Mourinho and XTB marked the start of the new global marketing campaign “Be like José”, which is based on the similarities between the challenges faced by investors and trainers every day. A well-thought-out strategy, the will to win and the ability to learn from mistakes are the main success factors in both football and finance.

– “Although in the third quarter we limited our marketing activities due to the holiday season, it was a very busy period for us. We devoted this time to prepare for the launch of the new stock offer and marketing campaign, which was launched just at the beginning of the fourth quarter. With the “0% commission” offer, we have opened the door widely to anyone interested in investing in both real stocks and ETFs. We want to enable our clients to take advantage of as many opportunities appearing on the market as possible, not only through the widest, but also the most price attractive range of financial instruments” – added Omar Arnaout. After a few years’ break, we returned to the concept of promoting the XTB brand with a global ambassador, by starting our partnership with José Mourinho – one of the best football managers in history. I am convinced that thanks to this cooperation, our brand will become even more recognizable in the world”.

Expansion into new markets

XTB puts a great emphasis on the geographical diversification of its revenues, consistently implementing the strategy of building a global brand. Although in the third quarter of 2020 Poland remains the largest country in the Group in terms of revenues (34.5% of the revenues of the XTB Group were revenues generated on the Polish market), the Group’s Management Board aims to create legal and organizational framework by the end of 2020 for the start of operational activities with the beginning of 2021 in a chosen Asian country. XTB is also planning commencing operations in South Africa. However, due to the complex local formal and legal conditions, the Management Board is currently unable to indicate the expected date of start-up operations on this market.

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Further information summarizing the activities of the XTB Group in the third quarter of 2020 is included in the Current Report No. 16/2020 – “Information on the preliminary financial and operating results for the III quarter of 2020”, which is available for download at https://ir.xtb.com/en/reports/

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