XTB (XTB) Q1 2022 TU earnings summary

Executive summary

• Q1 2022 net profit reached PLN 252.6m, up 183.7% YoY; operating income rose 135.6% to PLN 439.8m.

• High market volatility, a 44.7% YoY increase in average active clients and higher trading activity supported the record revenue.

Financial highlights

• Operating expenses were PLN 131.0m, up PLN 44.1m YoY; the largest increases were marketing (+PLN 17.6m) and salaries and benefits (+PLN 15.6m).

• Operating expenses rose PLN 30.3m QoQ, led by marketing (+PLN 13.4m) and salaries and benefits (+PLN 10.5m).

• EBIT was PLN 308.8m, compared with PLN 99.8m in Q1 2021.

Outlook and guidance

• 2022 ambition: acquire an average of at least 40,000 new clients per quarter; 55,333 were acquired in Q1 and 12,800 in the first 25 days of April.

• 2022 operating costs may be up to one-third higher than in 2021; marketing spend may rise by over 40% YoY.

• Cost levels will depend on variable remuneration, marketing, geographic expansion, revenue and potential product interventions.