XTB (XTB) Q4 2021 TU earnings summary

Executive summary

• FY2021 operating income fell 21.6% YoY and net profit fell 40.7%, reflecting lower CFD profitability per lot after unusually volatile markets in H1 2020; client numbers and trading volume grew strongly.

• Q4 2021 operating income rose 31.2% YoY to PLN 183.6m and net profit rose 71.4% to PLN 68.9m.

Financial highlights

• FY2021 operating income was PLN 625.6m, operating expenses PLN 348.7m, EBIT PLN 276.9m and net profit PLN 238.3m; respective 2020 figures were PLN 797.8m, PLN 282.0m, PLN 515.7m and PLN 402.1m.

• Q4 2021 operating income was PLN 183.6m, expenses PLN 100.7m, EBIT PLN 82.9m and net profit PLN 68.9m, versus PLN 140.0m, PLN 83.6m, PLN 56.3m and PLN 40.2m in Q4 2020.

• FY2021 CFD volume increased 29.3% YoY to 4.10m lots, while profitability per lot fell to PLN 152 from PLN 251; Q4 volume rose 34.0% to 1.07m lots and profitability per lot was PLN 171 versus PLN 175.

• FY2021 operating expenses rose PLN 66.7m YoY, led by marketing (+PLN 32.3m), commissions (+PLN 13.6m) and salaries and benefits (+PLN 12.1m).

Outlook and guidance

• 2022 client-acquisition ambition is an average of at least 40,000 new clients per quarter; approximately 18,000 were acquired in January 2022.

• 2022 operating costs may be up to one-third higher than in 2021, with marketing expenditure potentially rising over 40% YoY; actual costs depend on results, expansion, remuneration and regulation.

• A South Africa operation is intended to start no earlier than H2 2022; the MENA project is expected to take 9–12 months to evaluate.