XTB (XTB) Q1 2021 TU earnings summary

Executive summary

• Q1 2021 net profit reached PLN 89.1m, up 121.3% QoQ, as operating income rose 33.4% to PLN 186.7m; new-client additions hit a quarterly record of 67,231.

• Results reflected a larger, more active client base and higher CFD trading volumes, while profitability per lot eased QoQ.

Financial highlights

• Operating income was PLN 186.7m versus PLN 140.0m in Q4 2020 and PLN 306.7m in Q1 2020.

• EBIT was PLN 99.8m, compared with PLN 56.3m in Q4 2020 and PLN 234.1m in Q1 2020.

• Net profit was PLN 89.1m versus PLN 40.2m in Q4 2020 and PLN 176.0m in Q1 2020.

• Operating expenses rose to PLN 86.9m from PLN 83.6m QoQ and PLN 72.5m YoY; higher marketing and payment-provider commissions drove increases.

Outlook and guidance

• 2021 target: at least 120,000 new clients, equivalent to 30,000 per quarter; 10,600 were acquired in the first 20 days of April.

• 2021 operating costs may be a dozen percent higher than in 2020; marketing expenditure may rise by over 20% YoY.

• Cost levels depend on variable compensation, marketing, geographic expansion, product interventions and external factors affecting revenue.