Forex brokerage firm XTB has announced its preliminary result for the 4th quarter (Q4) of 2018 fiscal year.
February 11, 2019 | AtoZ Markets - Polish FX and CFD broker XTB has disclosed its financial report for the last quarter and the full fiscal year ending 31st December 2018. According to the report, the company's performance metrics in the last quarter of 2018 dropped. There was a decline in the company's revenues and net income. However, all was not gloomy for the publicly listed Forex dealer as reports show improvements in major business components on a year-on-year basis.
Operating Cost Declined, Revenue Improved
In comparison to the same period in 2017 when the company recorded a total operating cost of $20 million (y-o-y), XTB has seen a 44% drop in the same metric in 2018 Q4. In 2018 Q4, the company recorded a total operating cost of $11.23 million. The full year total revenue for 2018 fiscal year, the company's total revenue (y-o-y) stands at $75.7 million, which was 5% better than what it had in 2017.
Other Quarterly Metrics Dropped
The company's net profit in Q4 2018 experienced the largest change. The company recorded a net profit of $1.18 in Q4 2018 which was eight times less than what was recorded in the same period in 2017. However, on a yearly basis, the change was different. In 2018, the company's net profit of $24.4 million was just 10% worse than what it was in 2017 calendar year.
XTB was fined by the Polish Financial Supervision Authority in 2018. The regulatory body asked the company to pay $2.7 million fine for irregularities in the execution of clients' orders. It's important to note that this fine affected XTB performance in Q3 2018. In addition to this performance, XTB's client base also dropped. The company recorded a drop in the average number of active accounts in Q4 2018. The data dropped slightly from 20,909 in Q4 2017. New registered accounts also dropped by 15% from 16,530 in Q4 2017 to 13,930 in Q4 2018.
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