XTB (XTB) Q2 2022 TU earnings summary

Executive summary

• H1 2022 net profit reached PLN 480.0m, up 638.4% YoY; operating income rose 245.5% to PLN 836.2m.

• Average active clients increased 42.7% YoY to 149,824; 101,030 new clients were acquired, down 6.3% YoY.

Financial highlights

• H1 operating expenses were PLN 267.3m vs PLN 163.3m a year earlier; marketing and salaries/benefits were the largest cost increases.

• Q2 operating income was PLN 396.4m and net profit PLN 227.3m, compared with Q1 PLN 439.8m and PLN 252.6m, respectively.

• H1 EBIT was PLN 568.9m vs PLN 78.7m in H1 2021; profit before tax was PLN 586.2m.

Outlook and guidance

• 2022 ambition: acquire at least 40,000 new clients quarterly on average; 55,300 were added in Q1 and 45,700 in Q2.

• 10,700 new clients were acquired in the first 25 days of July 2022.

• 2022 operating costs could be up to 50% higher YoY; marketing spend may rise nearly 70%, depending on results, hiring, remuneration and expansion.

• South Africa operations are intended to start in mid-2023; expansion priorities include the Middle East and Africa, alongside organic growth in other regions.