XTB.com Reports Weak Financial Results in Q3 2020

​Retail FX and CFDs brokerage XTB.com has reported mixed trading volumes for three consecutive months(from July to Sep.) of 2020, confirming a third consecutive quarter of lower sales. The Q3 2020 earnings results, in line with the company in the second quarter of the year that saw the activity of its clients mostly unstable, compared to earlier this year when the coronavirus pandemic stocked unprecedented volatility across varying asset classes.

The firm announced that revenue down 34% from PLN 211 million in Q2 to PLN 139.6 million (USD $36 million), and fall 31% from Q1’s PLN 306 million. Over a yearly basis, the third quarter of 2020 XTB noted revenue increased 128.9% from PLN 61.0 million to PLN 139.6 million.

As for Net profit, Q3’s figure down 42% to PLN 68.4 million (USD $18 million), when compared to PLN 117.5 million in Q2.

Across a yearly timetable, the revenue increased still relative to 2019’s figure of averaged $15 million quarterly. As a result, the company was marginally profitable for most of the year.

The results are as follow:

• XTB.com brought on board 21,178 new clients in Q3, down over 9,000 from 30,253 in Q2;

• The average number of active clients in Q3 was 55,760, down slightly from 58,508 in Q2;

• Client net deposits in Q3 were PLN 296.3 million, down sharply from Q2’s PLN 590.8 million;

• CFD trading volumes totaled USD $275.1 billion in Q3, or about $92 billion monthly, which was actually up sharply from $69 billion monthly in Q2; and

• However profitability per volume traded was down sharply, PLN 131.3 per million versus PLN 257.9 per million in Q2.