XTB (XTB) Q2 2024 earnings summary

Executive summary

• Net profit for H1 2024 reached PLN 463.0m, up 10% year-over-year, with total operating income/revenues rising 12.9% to PLN 937.8m, driven by dynamic client growth and favorable market conditions.

• The Group acquired 232,316 new clients (up 38.9% y/y), with active clients rising 50.5% to 462,771, and transaction volume in CFD instruments reaching 3.93 million lots (up 8.7% y/y).

• Growth was fueled by higher client activity, increased transaction volumes, and strong performance in Central and Eastern Europe.

• Retail segment contributed the majority of operating income, with institutional segment also growing.

• The Group continued global expansion, focusing on organic growth in Europe, Latin America, Asia, and Africa, and launched new products including XTB Social and investment plans.

Financial highlights

• Net profit for H1 2024 was PLN 463.0m, up from PLN 421.0m in H1 2023; total operating income/revenues reached PLN 937.8m, up from PLN 830.7m.

• EBIT for H1 2024 was PLN 527.6m, a 7.9% increase year-over-year.

• EBITDA margin was 57.3%, with a net profit margin of 49.4%.

• Net cash from operating activities was PLN 465.2m; cash and cash equivalents at period end were PLN 4.02bn.

• Net deposits rose 111% year-over-year to PLN 1.9bn.

Outlook and guidance

• Product roadmap includes launch of XTB Social, digital wallet, and individual savings accounts in 2024–2025.

• Management expects total operating costs in 2024 to increase by 25% over 2023, with marketing expenses up by one-third, driven by client acquisition and global brand building.

• The Group targets acquiring 65,000–90,000 new clients per quarter and plans further expansion in Indonesia and Brazil, with Indonesia operations expected to start in early 2025.

• The regulatory environment, especially new restrictions in Spain, may impact client acquisition and revenues in that market.

• Continued focus on expanding product offerings and client acquisition.