Record-Breaking Quarterly Increase In Customers By 67 Thousand EUR 19,5 Million Net Profit And EUR 40,8 Million Revenues.XTB preliminary financial results for the first quarter of 2021.
In the first quarter of 2021, XTB generated EUR 19,5 million of consolidated net profit, 121.3% more than in the previous quarter, when the profit was EUR 8,8 million. Consolidated revenues amounted to EUR 40,8 million (Q4 2020: 30,6 million, an increase by 33.4%). In the first quarter of this year, XTB Group acquired a record number of new customers – over 67 thousand, which means an increase by 75.0% quarter-over-quarter. For the first time in history, over 100,000 clients actively invested with XTB on a quarterly basis.
Record-breaking customer growth; solid revenues and profits
The XTB Group summarised the first quarter of 2021 with operating revenues of EUR 40,8 million (an increase by 33.4% compared to the fourth quarter of 2020), net profit amounted to EUR 19,5 million (an increase by 121.3% compared to to the previous quarter), while EBIT was EUR 21,8 million (increase by 77.1% Q/Q). The XTB Group achieved a record quarterly increase in the number of both new clients by 67,2 thousand (which is an increase of 75.0% compared to the previous quarter, when the group of XTB client base increased by 38,4 thousand), as well as active clients, whose average quarterly number for the first time in the company’s history exceeded the level of 100 thousand, reaching as many as 103,4 thousand (an increase of 43.0% from the level of 72.3 thousand active clients in the fourth quarter of 2020). In total, almost 317 thousand people have invested with XTB so far.
The first quarter of 2021 was a very good period for XTB with the company managing to achieve a new record in terms of the number of new clients. Additionally, for the first time in history, XTB crossed the barrier of 100,000 active investors in one quarter with XTB. – said Omar Arnaout, president of the board of XTB. These customer indicators are of great importance in the context of building the long-term development of the company and the implementation of our strategy. The number of new and new active clients translates directly into XTB’s revenues and profits, which were also significantly higher than in the previous quarter.
The clear increase in the customer base in the first quarter of 2021 is the result of intensified marketing activities, including the campaigns launched in 2020 communicating commission-free investing in shares up to EUR 100,000 in turnover per month. This campaign featured the new XTB ambassador, Portuguese coach José Mourinho. The Group also put a great emphasis on educational activities by organising on numerous markets a new format of a conference addressed to novice investors. The new series of events, branded XTB Investing Day, was designed both to provide basic knowledge related to investing and to familiarise current investors and potential clients with the full range of instruments available at XTB on the individual markets.
Services providing liquidity and technology to other financial institutions is a constantly growing area of the XTB Group’s operations. In Q1 2021, the X Open Hub (XOH) recorded a revenue of EUR 2,3 million, while in the fourth quarter of 2020 it was over EUR 1,1 million.
Due to the development of business activities, XTB Group’s employment exceeded 550 people at the end of the first quarter of 2021. The total operating costs amounted to EUR 19 million and were slightly higher than those incurred by the Group in the fourth quarter of 2020, when they amounted to EUR 18,3 million.
Getting closer to the opening of a new market
Regarding the geographic expansion, the Group is finalising the preparatory activities aimed at launching operations in the United Arab Emirates. On January 9, 2021, a local business entity XTB MENA Limited was established. Currently, a number of activities are underway in order to meet all the conditions of the local DFSA regulator, which will allow it to obtain a license necessary to start operating in the UAE.
We are coming closer to the moment that we have been waiting for – launching operational activity in the United Arab Emirates. Step by step, we are implementing planned activities – from obtaining the necessary approvals and licenses, through the preparation of our internal infrastructure, products and offer, to the recruitment of the local team – all of which will allow us to start a completely new chapter in the history of XTB’s global expansion. We will be happy to share all the detailed plans when we start operating in Dubai, which in line with earlier announcements, will take place in the first half of this year. – said Omar Arnaout.
The situation in South Africa has not changed recently, where the expected date of commencement of operations is impossible to determine due to the complex local formal and legal conditions.
Further detailed information summarising the activities of the XTB Group in 2020 is included in the Current Report No. 10/2021 – “Preliminary financial and operating results for the year 2020”, which is available to download here.
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About XTB GROUP
XTB Group consists of companies with one of the largest stock exchange-listed FX & CFD brokers in the world. XTB Group has entities regulated by the world’s biggest supervision authorities including the FCA, CySEC and KNF. With more than 15 years of experience, XTB Group provides retail traders instant access to hundreds of global markets. XTB is a fintech company based on trust, technology and support. Since 2002, XTB Group has expanded to 12 major markets in Europe, Latin America and Asia, attracting over 275,000 clients. Operating company’s own award-winning xStation and XTB Mobile app platforms, the entities of XTB Group offer over 1,500 instruments, including forex, indices, commodities, stock and ETF CFDs. Through X-Open Hub, XTB provides leading technologies for financial institutions from around the world. Find out more at www.xtb.com