XTB (XTB) Q4 2022 TU earnings summary

Executive summary

• Record 2022 results reflected a larger active client base, higher CFD trading volumes and favorable market conditions; net profit reached PLN 765.7m, up 222.0% YoY.

• Q4 revenue rose 18.1% YoY to PLN 216.7m, while net profit fell 27.1% to PLN 50.0m as per-lot profitability declined despite higher trading volume.

Financial highlights

• FY 2022 operating income was PLN 1,444.2m, up 130.9% YoY; operating expenses were PLN 558.6m versus PLN 348.8m in 2021.

• FY 2022 EBIT was PLN 885.7m versus PLN 276.8m in 2021; net profit was PLN 765.7m versus PLN 237.8m.

• Q4 2022 operating income was PLN 216.7m versus PLN 183.6m a year earlier; EBIT was PLN 58.5m versus PLN 82.9m, and net profit was PLN 50.0m versus PLN 68.5m.

Outlook and guidance

• 2023 client acquisition ambition: average 40,000–60,000 new clients quarterly; 42,300 new clients were acquired in January 2023.

• 2023 operating costs may be up to ~25% higher than in 2022, with marketing spend potentially up ~20%; actual costs depend on remuneration, expansion and external factors.

• Growth priorities include deeper European market penetration, expansion in Latin America, Asia and Africa, and new products; launch in South Africa was postponed at least until 2024.