XTB’s new financial report reveals a YoY revenue surge and a doubled number of active users

XTB, one of the largest stock exchange-listed FX brokers in the world, recently released preliminary financial results for 2023. The firm highlighted a 10% surge in revenue on an annual basis, alongside a 51% increase in the number of active users.

XTB’s performance in 2023

According to the report, the company has seen quite a noticeable performance increase last year. The number of its active clients has increased by 311,971, and it managed to defy the market volatility and inflationary pressures to hit a 3% year-over-year (YoY) increase in net profit, climbing up to PLN 791.3 million ($196.69 million).

Its YoY revenue has seen a 10% boost, reaching a total of PLN 1,688.2 million, compared to PLN 1,444.2 million at the end of 2022. The company owes its increased performance to heightened volatility in financial and commodity markets, as well as to the massive expansion of its clientele.

It saw a boost in the usage of specific asset classes, including CFD contracts, which concluded in lots and saw a 16.5% increase on an annual basis. This alone contributed to a transaction volume of 7,416.5 thousand lots.

However, the report also shows that profitability per lot dropped to PLN 214 from PLN 227 as seen during the year before.

Q4 2023 brought in impressive figures

XTB also saw an extremely successful Q4 2023, which saw a yearly revenue increase of 127.7%. This brought its total revenue for the quarter to PLN 493.6 million. Reports say that the surge happened due to increased profitability per lot, as well as growth in client turnover, particularly in CFD instruments. Finally, the quarter also saw some distinct trends, which led to a substantial revenue increase.

CFDs based on indices were leading the charge, responsible for 47.8% of total revenues. Following were commodities with 39.9%, and CFCs based on currency accounted for around 10.1%. The figures show that the company saw a significant shift in revenue distribution, which came as a result of the change in profitability of instruments tied to certain indices.

Alongside the increased revenue, XTB also reported a notable increase in operating costs throughout last year. According to the report, operating costs amounted to PLN 693.6 million, which is a massive increase compared to PLN 135 million seen in 2022. However, this rise was also justified by increased remuneration, marketing expenses, and external services.

But, despite the costs, the company’s client base blew up, reaching 311,971 clients, which in itself represents a 58.5% growth from 2022. One reason for such a rapid and massive arrival of new clients is believed to be the introduction of fractional shares, which significantly improved user experience.Now, taught by the experience, XTB also intends to introduce social trading and push client experience to new heights later on in 2024.