XTB (XTB) Q3 2024 earnings summary

Executive summary

• Q3 2024 net profit rose 68.3% year-over-year to PLN 203.8M and operating income increased 67.4% to PLN 470.2M, driven by strong client growth and expansion in Central and Eastern Europe, especially Poland.

• The Group launched new products including XTB Social, eWallet, and individual retirement accounts, and continued investing in technology and client acquisition.

Financial highlights

• Q3 2024 operating income: PLN 470.2M (Q3 2023: PLN 281.0M); net profit: PLN 203.8M (Q3 2023: PLN 121.1M); nine-month operating income: PLN 1,408.0M; nine-month net profit: PLN 666.9M.

• EBIT for Q3 2024: PLN 261.7M, up from PLN 116.0M year-over-year.

• EBITDA for Q3 2024: PLN 266.8M; EBITDA margin: 56.7%.

• Operating expenses for Q3 2024: PLN 208.5M; nine-month expenses: PLN 618.9M.

• Net cash from operating activities for nine months: PLN 593.5M; cash and equivalents at period end: PLN 1,250.0M.

Outlook and guidance

• Management expects 2024 operating costs to rise by one-fifth, mainly due to higher marketing and employment expenses.

• Focus remains on client base growth and global brand building, targeting 65-90K new clients per quarter.

• Expansion into Indonesia and Brazil planned, with Indonesia operations to start in early 2025.