Leading brokerage company XTB posts record profits in Q1 2023
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XTB, one of the largest online trading platforms, has reported strong results for the first quarter of 2023. The broker had a consolidated net profit of EUR 64.4 million in Q1 2023, a 19.9% year-over-year increase.
XTB reports record profits in Q1 2023
The report released for the first quarter was one of the company’s best performances ever reported. It can be attributed to the increased volatility in the financial and commodities market because of a banking crisis and geopolitical tensions.
The strategic marketing initiatives adopted by XTB resulted in a notable growth in client numbers and transactional activities. The operating revenues in Q1 2023 also increased to EUR 113.1 million, significantly higher than the EUR 94.6 million reported in Q1 2022.
The operating costs at the company also increased from EUR 28.2 million in Q1 2022 to EUR 39.2 million in Q1 2023. The report released during the last quarter also shows that these results are strong on an annual and quarterly basis.
The report released by the broker for the last quarter indicates that these financial results are good on an annual and quarterly basis. There is a notable improvement from Q4 2022, when the broker posted one of its worst quarter. The net profit increased fivefold in Q1 2023 compared to the previous quarter.
The CEO of XTB commented on these financial results saying, “Preliminary results for the first quarter of 2023 turned out to be record-breaking in many respects. Our strategy based on expanding the customer base and continuous investment in technology and new products brings the expected results.”
XTB reports impressive client acquisition and trading volume numbers
During the first quarter of the year, XTB had 104,200 new clients, which brought the total number of clients at the company to 703,900. The figure was a 46.1% year-over-year increase and an over 100% quarter-over-quarter increase.
The number of active clients at the company also increased from 149,800 in Q1 2022 to 215,700 during the first quarter of 2023, representing a 44% growth. The CEO noted that during the first three months of the year, the broker focused its activities on promotions in the capital market by interacting with the company’s ambassadors.
The company also reported an 18.2% increase in trading volumes for contracts for difference (CFD) instruments. CFD trading volumes increased to 1.86 million from the 1.56 million reported during the same period in 2022. During the first quarter, the profitability per lot reached EUR 62, an increase from the EUR 61 reported in Q1 2022.
In Q1 2023, commodities CFDs accounted for the largest share of XTB revenues, accounting for 48.8% of the revenues generated from financial instruments. These revenues also jumped by 30.2% compared to Q1 2022.
Natural gas and gold became the most profitable instruments among commodities CFDs. CFD instruments based on indices accounted for 45.3% of the revenues in Q1 2023. Forex-based CFDs accounted for 4.2% of the total revenues.
