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)

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