XTB Increased Profits by 6X, Revenues by 300% – Cryptovibes.com – Daily Cryptocurrency and FX News

Polish forex and CFD broker XTB recently reported its final quarter results for 2020 and the fiscal year ending December 31, 2020, showing extensive improvement in its revenue and profit figures.

A good year for XTB

XTB reported one of its most successful quarterly earnings seasons to date. In the previous year, most players in Europe were reeling under pressure because of the new ESMA guidelines but 2020 proved to be a very fruitful year for the industry. The increase in market volatility because of the pandemic led to breakout trading activity. Customer acquisition during the quarter increased substantially.

During the fourth quarter of 2020, the operating revenues of the firm totaled $37.5 million which is 55% higher than the $23.4 million earned in Q4 2019. The higher figure in 2020 was offset by the increase in operating expenses which were 76% higher than the previous year. The net profit of the firm increased mildly from $9.7 million in Q4 2019 to $10.8 million in Q4 2020.

Yearly metrics also show growth

XTB’s yearly metrics for 2020 show impressive growth. Its operating revenues for the entire year of 2020 totaled $213 million, which is 300% higher than its figures in 2019. The yearly net profit was $107 million, which is 600% higher than the $14.89 million earned in the previous year. The performance for the quarter-on-quarter and year-on-year results can be attributed to the weak results in the first half of last year when the firm posted a net profit of just $1.34 million. This occurred because of the new ESMA regulations on the firm.

The listed-broker also said that volumes for CFD have almost doubled from 1.6 million in 2019 to 3.2 million in 2020. The profitability per lot also increased during the year but decreased on a quarterly basis. The firm noted that its operating revenues were primarily influenced by stock indices CFDs which accounted for 56% of its total revenue. In the previous year, it accounted for 76% of the firm’s revenue.