XTB (XTB) Q3 2021 TU earnings summary

Executive summary

• Q3 2021 net profit rose to PLN 101.5M from PLN 68.4M YoY; operating income increased 40.8% to PLN 196.6M.

• Growth reflected a larger client base and higher trading activity; 38,573 new clients, up 82.1% YoY, and CFD volume of 1.044M lots, up 37.3%.

Financial highlights

• Q3 operating expenses were PLN 84.8M versus PLN 60.1M YoY; EBIT reached PLN 111.8M versus PLN 79.5M.

• Q3 profit before tax was PLN 124.7M versus PLN 79.4M; income tax was PLN 23.2M versus PLN 11.0M.

• 9M operating income was PLN 438.6M versus PLN 657.8M; net profit was PLN 166.5M versus PLN 361.9M.

Outlook and guidance

• 2021 new-client target of at least 120,000 was reached in July; guidance assumes average quarterly additions of at least 30,000 in subsequent periods.

• 9.2K clients were acquired in the first 24 days of October 2021.

• 2021 operating costs were expected to be a dozen percent higher than 2020; Q4 marketing spend was expected to exceed Q3.

• Future costs depend on variable employee remuneration, marketing, geographic expansion, product interventions and other external factors.