XTB broker comes out with a quarterly loss of PLN 23.8 million compared to the previous quarterÃ¢â‚¬â„¢s profit of PLN 89 million.
As the demand for retail trading increases during the pandemic, Polish forex, and CFD broker, XTB has also made huge profits. Although it managed to stand firm during the first quarter of 2021, XTB actually experienced a drastic decline in the second quarter by reporting losses.
XTB Gains New Clients Despite Slow Down
As market volatility wanes, XTB's revenue also declines. In fact, XTB reported incredible numbers for the first quarter of the year with over a 33 percent jump in quarterly revenue and 121.3 percent gains in profit. Based on official consolidated data, XTB ended the second quarter with a net loss of PLN 23.8 million, down from the previous quarter's profit of PLN 89 million.
This bearish trend can also be seen in the broker's operating income which only posted PLN 55.1 million, or a decline of 70 percent compared to Q1 results.
As a result, the company lost at PLN 77 million with losses before tax reaching PLN 30.7 million. Even so, considering the semi-annual results, XTB broker still benefits from the acquisition of 40,623 new clients bringing the total number to 352,946. Moreover, the number of 106,563 active traders in Q2 is higher than the number of the previous quarter. Net client deposits also amounted to PLN 650 million.
XTB said they were not worried about the volatility dimming. When market volatility is low with limited movement, trends become more predictable, thus creating favorable conditions for long-distance trading.