Warsaw based X Trade Brokers Dom Maklerski SA (WSE:XTB), which operates Retail Forex broker XTB.com, reported a 77.7 million PLN consolidated net profit in 2016 (to 119.0 million PLN year earlier).
XTB net profit in the fourth quarter rose turn YoY by 206% to 50.4 million PLN. The fourth quarter was the very best for the Group throughout 2016 reaching levels close to the best record in the history of quarters XTB 2015.
Operating income in the whole 2016 years amounted to 250.6 mln PLN to 282.5 million PLN in 2015. In the fourth quarter the Group recorded 94.0 million PLN revenue from operating activities (57.4 million PLN year earlier).
Trading instruments and improvements introduced in 2016
New equity CFDs
- Several hundred new CFDs based on shares listed on global stock exchanges has been introduced
Synthetic stocks
- Synthetic stocks (non leveraged CFDs based on shares from the international stock exchanges)
Instruments portfolio
- Total number of financial instruments has been increased to more than 3 000
CRM tools
- Consistent implementation of modern CRM tools in branches – tool for the comprehensive management of customer relations from the first contact through further service stages to signing the agreement and maintaining post-sale relations
xStation
- New xStation5 platform was released
- xStation for Smartwatch was released, as well as the new, improved version of xStation for Android
Servers update
- Servers located in Germany were modernized, resulting in an even faster execution of the customers’ orders
Marketing activity
- Increased marketing activity of the Group on selected markets. The Group launched a global branding campaign using an actor Mads Mikkelsen. Also educational project with participation of football player Grzegorz Krychowiak was implemented, which allows beginners to acquire necessary knowledge for trading
Paul Szejko
Paul Szejko, Member of the Management financial Board, commented:
In the fourth quarter of 2016 years the situation on the financial markets was favorable for XTB. We watched favorable for us volatility instruments CFD-based indexes – these are the German DAX and the American DJIA and S & P500 – and currency pairs with USD, or commodity, such as gold or oil. ”
Last year was special for us. On the one hand, we strengthened its position as one of Europe’s leading brokers. In May, we debuted on the Warsaw Stock Exchange in Warsaw. Joining the ranks of listed companies was for us a key element of the strategy to build long-term value XTB. Our competitive advantages joined another feature desired by our customers – the transparency of our business model and finances. Rozbudowywaliśmy also consistently customer base for future growth. From quarter to quarter it increased number of new accounts and the average number of active accounts. On the other hand, we witnessed a progressive regulatory changes in the industry, which in the long term can change its face.
Some competitors have taken the decision to withdraw from the market because of the pressure exerted on their results had an introduction of additional restrictions and legal barriers. This was especially true of the entities not established position in the market. We see this as an opportunity to consolidate the market. This situation creates opportunities for us to develop and increase the number of new accounts. ” added Paul Szejko.
The purpose of the board for the coming period is to accelerate the Company’s growth, by expanding the customer base, the development of the product offering, further penetration of existing markets and accelerate our geographic expansion into new markets. In the near future we intend to intensify its activities in Latin America. Currently, we focus on business development in Chile. We hope that in the years 2017 and 2018 our expansion in this region will significantly speed up.
The Board expects that in 2017. Operating costs will be lower than in 2016. On a quarterly basis, they can be at the level comparable to those of the fourth quarter and 2016 year. This decline should result mainly from lower marketing costs. ” concluded Paul Szejko.
The complete XTB 2016 results presentation can be seen here.