Apple picker Press Release: The XTB Group recorded a significant 2021% increase in sales in the third quarter of 36,5 (compared to the third quarter of 2020) from 31,4 million euros to 42,9 million euros. The consolidated net profit achieved in this period also increased, reaching 22,2 million euros (an increase of 43,9% compared to the third quarter of the previous year, when the profit reached 15,4 million euros). The operating profit indicator (EBIT) in the third quarter of 2021 also increased to 24,4 million euros compared to 17,9 million euros in the previous year.
"The XTB Group achieved a significant increase in revenue and profit in the third quarter of this year. Most importantly, these increases are based on an ever-growing base of new and active clients. Although the third quarter is mainly summer time, we achieved very good results - also thanks to the daily efforts of our team. We are constantly developing our offer and improving our platform and technology. This quarter we also opened a new branch in the United Arab Emirates and acquired a license in South Africa,” said Omar Arnaout, Chairman of the XTB Board of Directors.
In the third quarter of 2021, the significant activity of XTB clients on the market was reflected in higher trading of CFD derivatives, which reached 1 thousand lots (Q044 3: 2020 thousand lots), and in a slight increase in profitability per lot to 760 euros (41,3 . quarter 3: 2020 euros).
Achieved annual goal of the number of new clients
The constantly growing number of new clients is one of the foundations of the XTB Group's development. Already in July, i.e. the first month of the third quarter, the XTB group reached the target number of new clients, which Omar Arnaout announced at the beginning of this year. The annual goal of 120 new clients was significantly exceeded, and after nine months of this year, the XTB Group announced the acquisition of 00 new clients. This is a record 146% increase compared to the 427 new clients acquired in the first 98,9 months of last year. In the third quarter of this year alone, the XTB Group acquired 73 new clients, which is almost half more than it acquired in the same period of 612. In total, 9 clients entrusted the XTB Group with their investments.
Thanks to an optimized continuous sales and marketing strategy, greater penetration into existing markets, the gradual introduction of new products into the offer and expansion into new geographic markets, the average number of active clients also increased. Specifically, it grew by 100,6% – from 53 in the third quarter of 309 to 2020 in the same period this year.
"In terms of new clients, we are happy that we have already reached our annual goal of 120 new clients. This parameter is key to ensuring stable revenue growth and group profit in the long term. Importantly, it is also supported by a growing base of active clients, which we have doubled compared to the third quarter of last year." summed up by Omar Arnaout.
In September, a new phase of the global marketing campaign was launched promoting the offer of investing in shares without fees up to 100 euros per month. In the following quarter, further phases of the campaign and other marketing activities will be implemented.
The group's goal is to become the first choice and comprehensive solution for every investor. Currently, XTB clients can invest in up to 5 different financial instruments, including shares, ETFs and CFDs on the forex market, in indices or commodities. XTB also offers the possibility to invest in CFDs on cryptocurrencies. At the beginning of September, nine new instruments based on cryptocurrencies were added to the offer. Interest in these instruments is constantly growing - in the first half of 400, 2021% of XTB clients made at least one transaction using CFDs on these instruments, and for almost 20% of new clients, a transaction using CFDs on cryptocurrencies was the first they made after opening an account.
Operating costs in this year's third quarter reached 18,5 million euros and were 5 million euros higher than in the comparable period last year (13,5 million euros).
The XTB Group continues its geographic expansion
With the launch of XTB MENA Limited in the United Arab Emirates on July 29, 2021, the XTB Group has entered the next important stage of its geographic expansion. This important step was preceded by obtaining a license from the local regulatory body DFSA, which also happened in the third quarter of this year. Clients of the newly opened branch have access to almost two thousand financial instruments, while the offer will be further expanded and modified in response to the needs and preferences of local investors. As in other markets, in the UAE, XTB strongly focuses on education and cooperation with local established partners.
In August, the subsidiary XTB Africa (PTY) Ltd. acquired license to operate in South Africa. The Board of Directors is currently coordinating preparatory work for the start of operations on this market in the second half of 2022.
“On schedule and just three weeks after receiving a license from the Dubai Financial Services Authority, we have launched in the UAE, offering clients from the region access to nearly 2 financial instruments, our solutions and world-class services. Although we have to wait 000 to 9 months to evaluate the success, we want to invest heavily in this region and eventually become the leading broker in the Middle East.” added Omar Arnaout.
The key importance of the Czech market
The third quarter of this year was marked by the strengthening of the market position and the preparation of the marketing and educational campaign, which began at the end of the third and the beginning of the fourth quarter. The offer to invest in shares without fees of up to €100 per month, backed by a new marketing campaign featuring José Mourinho, is still highly valued and attracting new clients. Compared to the previous quarter, the number of financial instruments available in the Czech Republic also increased, to more than 000. The constantly improved xStation platform and the improved xStation Mobile mobile application are perceived very positively by XTB clients and are among the best-rated brokerage applications. The next edition of the Online Investment Conference takes place on November 5 - the largest free online conference for investors, where, among other things, we will talk about inflation risks, investments in China, and also look at the market outlook for 400. The live broadcast on YouTube starts on Saturday the 20th. November at 2022:20 a.m. and those interested can register for free now on this website.
"XTB's success in the Czech Republic and on a global scale consists of three elements - the largest free educational base for investors on the market, our own award-winning desktop and mobile platform xStation, which are additionally supported by excellent customer service and a constantly developing investment offer. The results we achieved in the third quarter were significantly supported by the implementation of a new marketing campaign with José Mourinho, which promotes fee-free investing and educational activities. These are key, especially when we're getting thousands of new clients who are just getting started with investing. Together with our partners, we want to show them best practices and share experiences that will help them navigate the world of investments." said Vladimír Holovka, sales director of XTB.
Further detailed information summarizing the activities of the XTB Group in the third quarter of 2021 is provided in Current Report No. 1/2010. 16/2021 - "Preliminary financial and operational results for III. quarter 2021”, which is available for download at to this address.
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