Positive news in XTB’s Q4 earnings release
Operating income for the quarter jumped by +31.2% on a year over year basis and client numbers grew over the quarter by + 42,760. Which represents a growth rate of 11.30%.
XTB managed to grow its client base to 189,000 during the full year, and 127,000 of those clients were active during the fourth quarter.
That level of client activity meant that CFD trading volumes in the quarter rose by +34.0%, and over the year as a whole, by +29.30%.
Operating income for the quarter came in at PLN183.60 million or £36.72 million.
Speaking about the results CEO Omar Arnout said :
“This would have not been possible without the huge effort and engagement of our global XTB team whom I would like to thank!”
He added that
“On the other hand the previous year is (in) the past and now our focus is on the present. With the plans that we have in store, I am confident that we will continue our dynamic growth and continue to provide our clients with the highest level of services and technology.”
As part of that process, XTB is to expand its operations and is aiming to start forex trading in South Africa in the second half of 2022.
Taking advantage of the license it was granted in August 2021.
XTB is also focusing on growing the size of its middle eastern operations which are based in the UAE and which opened for business just over 12 months ago.
XTB is listed in Poland and initially, the stock rose on the earnings release trading up to PLN 16.86 before closing at PLN 16.42. However, in keeping with major stock markets the shares have traded lower on Thursday hitting a low of PLN 16.12.
Over the last 5 trading days, the stock is lower by -3.23%. In the last 12 months, XTB shares have fallen by -21.93%.
That compares to a gain of +4.39% in the share price of the market leader, IG Group, and a +14.99% gain in the Polish equity benchmark the WIG 20 index.
XTB has a market cap of PLN 1.89 billion or £350 million which puts the stock on a multiple of just 10 times its Q4 operating income.
If it can continue to grow its business at the current rates, then it will soon start to look undervalued, when compared to its London listed peers.