XTB (XTB) Q3 2022 TU earnings summary

Executive summary

• Q3 2022 net profit was PLN 236.2m, up 126.5% YoY; operating income rose 95.6% to PLN 391.3m.

• Active clients reached 151,685 in Q3, up 36.8% YoY; CFD trading volume increased 52.7% to 1,594,606 lots.

Financial highlights

• Q3 operating expenses were PLN 132.5m versus PLN 84.8m YoY, with higher marketing, salaries and employee benefits, commissions, and external services.

• 9M 2022 operating income was PLN 1,227.5m, EBIT PLN 827.2m, and net profit PLN 715.8m, compared with PLN 442.0m, PLN 194.0m, and PLN 169.3m in 9M 2021.

• Q3 finance income was PLN 32.1m; finance costs were PLN 0.3m, and profit before tax was PLN 290.5m.

Outlook and guidance

• 2022 client-acquisition ambition remained at an average of at least 40,000 new clients quarterly; 44,796 were added in Q3 and 14,100 in the first 25 days of October.

• 2022 operating costs were estimated to rise 50–55% YoY; marketing expenses could increase nearly 70% YoY.

• South African operations were targeted to begin in mid-2023; expansion efforts focused on the Middle East and Africa.