XTB has just released its financial report for Q2 2021, including a loss of PLN 23.8 million for the quarter after revenues dropped by 70%.
July 29, 2021, | AtoZ Markets – XTB, a Polish forex and CFDs broker, just published its interim results for the second quarter of 2021. The results which ended on June brought in a loss after several quarters in profit. According to the official results, the broker finished the quarter with a net loss of PLN 23.8 million ($6 million). That’s a substantial reversal from the 1st quarter profit of PLN 89 million.
Although the Poland-based broker managed to register excellent numbers for several consecutive quarters, it seems that the effect is slowly wearing off. The rise was chiefly driven by the increased interest in retail trading demand across markets. Low volatility is also having an effect on retail trader numbers.
XTB had excellent numbers in Q1 of 2021
One can observe the substantial decline in revenue for XTN when comparing the first and second quarter. Revenue for the second quarter was PLN 55.2 million, or a 70% decline when compared with Q1. Losses were also increased due to the high expenses of PLN 77 million. The broker’s pre-tax loss came in at PLN 30.7million.
These rather disappointing numbers came after XTB reported sky high numbers for the first quarter of 2021. Quarterly revenue jumped by more than 33% whilst there was a gain of more than 121% in profits. These results for the 1st quarter meant that for the first half of the year, XTB remained profitable.
XTB client activity is still impressive
Although there was a slowdown across Q2, XTB still retained impressive client activity. The forex broker gained a grand total of 40,623 new clients which took its total number to 352,946. Out of these a healthy 106,563 traders were active on the broker in the quarter under review. This is actually higher than the number registered in the previous quarter. Net client deposits registered the PLN 650 million mark.
“There was a more predictable trend with the market moving within a limited price range. This led to market trends that were more likely to be predicted than in the case of greater market volatility, which created favorable conditions for range trading,” the broker explained in a note to the statements.
“In this case, XTB recorded a greater number of transactions at a loss, which led to a decrease in XTB’s market-making result,” XTB added.
In the meantime, XTB continued strengthening its international reach. It received a Dubai Financial Services Authority license to establish operations in the Middle East and North Africa region.
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