XTB’s Q3 Financials See Sizable Decline in Profits and Metrics

XTB, a recently listed brokerage on the Warsaw Stock Exchange (WSE), has reported its financial results for the first nine months of 2016, which indicated a pullback across a number of measures YoY, due in large part to diminished volatility, per a company disclosure.

The latest results follow on the heels of a mixed Q2 that despite a healthy account growth saw XTB’s profits retreating. YTD, XTB disclosed a number of key measures in Q3 2016, which were characterized as a step back from the year prior. In particular, total operating income for the first nine months of the year declined to $38.2 million (PLN 156.7 million), relative to $55.0 million (PLN 225.2 million) for the first nine months of 2015, or -30.5% YoY.

In addition, YTD XTB’s profit on operating activities also saw a sizable retreat to $6.6 million (PLN 27.0 million), which was reflective of a decline of -78.5% YoY from $30.7 million (PLN 125.6 million) as of Q3 2015. Overall, XTB’s net profit YTD came in at $6.7 million (PLN 27.3 million), compared to $25.0 million (PLN 102.5 million) for the first nine months of 2015, or -73.4% YoY.

XTB also yielded a pullback in its net profit and diluted net profit per share attributable to shareholders (in PLN/EUR per share), coming in at 0.23 for the first nine months of 2016, vs. 0.87 over the same interval in 2015, or -73.5% YoY.

Instrument Analysis

Looking beyond its financials, XTB also saw a mixed performance of its operations for the first nine months of 2016. More specifically, contracts-for-difference (CFD) totaled just $10.5 million (PLN 42.9 million) YTD, down from $23.3 million (PLN 95.2 million) for the first nine months of 2015, or -54.9%.

Overall, the decrease in income on XTB’s financial instruments over a nine-month period of 2016 was instigated in part by lower volatility in the financial markets relative to 2015 – last year had also seen a highly dynamic market, caused in part by a flash crash in China, which dictated volatility over all other markets.

XTB’s stock price (WSE:XTB) is trading down -0.75% today, falling to $1.96 (PLN 7.95) per share in European trading.

(Photo: XTB)

Bitcoin (BTC) $ 44,439.00 3.97%
Ethereum (ETH) $ 3,360.93 4.85%
Binance Coin (BNB) $ 522.25 6.01%
XRP (XRP) $ 1.51 4.95%
Cardano (ADA) $ 2.03 9.01%
Dogecoin (DOGE) $ 0.489996 3.48%
Tether (USDT) $ 1.00 0.10%
Polkadot (DOT) $ 40.09 3.68%
Bitcoin Cash (BCH) $ 1,100.29 4.31%
Litecoin (LTC) $ 293.18 0.27%
S&P 500  ^GSPC 
$4,163.29  $10.56  (-0.25%)
Dow Jones Industrial Average  ^DJI 
$34,327.79  $54.34  (-0.16%)
NASDAQ Composite  ^IXIC 
$13,379.05  $50.93  (-0.38%)
Russell 2000  ^RUT 
$2,227.12  $2.49  (0.11%)
Crude Oil Jun 21  F*CL.NYM 
$66.42  $0.1500  (0.23%)
$0.0000  $0.0000  (0.00%)