XTB’s Revenue Hits Record $938M in H1 2024

XTB has reported record-breaking revenue for the first half of 2024, reaching $938.1 million, a 12.9% increase year-over-year. Despite higher marketing and employment costs, net profit rose by 10% to $463 million. The company added 232,300 new clients, bringing the total to 1.11 million, showcasing significant growth in its client base.

Paweł Szejko, XTB’s Chief Financial Officer, highlighted the company’s impressive performance, noting that the first half of 2024 generated more revenue than the entire years of 2020 or 2021. However, the second quarter saw a decline, with net profit dropping nearly 50% to $40 million compared to the first quarter.

XTB’s trading volume in CFD contracts increased by 8.7% to 3.93 million lots, with profitability per lot rising by 3.9% to $239. Commodity-based CFDs were the most profitable, accounting for 48.2% of revenue, followed by index-based CFDs at 37.2%. The company is transitioning from a CFD broker to a universal investment app, with nearly 80% of new clients starting by investing in stocks, ETFs, or creating Investment Plans. Net deposits more than doubled to $3.80 billion, reflecting growing client trust and the introduction of interest on free funds.

More Goodies in September and Beyond

XTB plans to launch several new products, including government and corporate bond offerings in September, IKE retirement accounts for Polish investors, and a virtual wallet with a multi-currency card by year-end. The company is also pursuing international expansion, with plans to enter the Brazilian and Indonesian markets. Operations in Indonesia are expected to commence in early 2025, while the licensing process in Brazil is ongoing.

As part of its global marketing strategy, XTB has signed an agreement with a new brand ambassador, with commercials featuring the individual set to air later this year. This move is expected to enhance the company’s brand visibility and attract more clients.

Despite the challenges faced in the second quarter, XTB’s overall performance in the first half of 2024 demonstrates its resilience and adaptability in a competitive market. The company’s focus on product expansion, international growth, and strategic marketing initiatives positions it well for continued success in the coming months. With a strong client base and a diversified product offering, XTB is poised to capitalize on emerging opportunities and maintain its momentum in the retail trading industry.