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XTB Reports 2019 Results with a Series of Positives

Forex and CFDs broker XTB recently posted its final results for Q4 and the fiscal year ending December 31, 2019. Fortunately for the broker, its figures showed one of its most successful earnings seasons.

Stock indices CFDs accounted for 75% of the broker’s operating revenues, up from only 49% from a year earlier. However, revenues from forex CFDs generated to 18% of total revenues compared to 23.5% in 2018.

Revenues in the fourth quarter of 2019 also saw a massive increase of 109% year-over-year. Higher profitability per lot drove most of the increase with offset lower turnovers decreasing from 458,869 to 394,147 lots.

Retail business generated 88 percent of the group’s total volumes. Meanwhile, institutional traders led approximately 12 percent.

In Q4 2019, XTB saw total operating revenues of $23.4 million: more than double against Q4 2018 at $11.23 million. Q4 2019 net profit came in at $9.7 million, nearly eight times higher than the $1.1 million achieved in 2018.

XTB’s Road to Success

The figures came from recovery in a subdued environment led by ESMA’s regulatory changes in 2018. XTB claims that its introduction to new products also helped its firm to develop better results.

ESMA’s restriction had a more severe impact than anticipated, which forced the company to see low results throughout the year.

Consolidated net profit went down 43% when compared to 2017. CFDs turnover in lots amounted to 1,597,218 lots compared to 2,095,412 a year prior.

The company took this as an opportunity to level the playing field for competition. ESMA’s regulation changes helped the Poland-based broker to grow its market share in the European market.

The firm added CFDs on biotechnologies, cannabis, and technology companies to its offerings last year. Stock and ETF offerings were also constantly expanded by new instruments, which clients wanted.

XTB is also developing its xStation trading platform with new functionalities.



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