XTB Limited (formerly X Open Hub) loses $1.1 million in 2014 – LeapRate Exclusive

LeapRate has learned that FCA-regulated Forex platform provider and operator XTB Limited lost £687,000 in 2014 (USD $1.1 million), on revenues of £970,000 (USD $1.5 million).

To keep the company liquid, XTB’s shareholders continue to stream money to the company. During 2014 XTB received £1.1 million, and in March 2015 a further £500,000 was invested by shareholders, as the company’s equity dropped below £1 million at year-end.

[Editor’s Note: see update article including official XTB management reaction here].

The main culprit seems to be XTB’s own retail forex brand, which saw a 47% drop in revenues during 2014 (see table below), and took in just £255,000 during the year. The company’s institutional (platform) business, however, nearly doubled its sales to £715,000.

XTB revenues

XTB Limited operates two divisions:

  1. the X Open Hub platform, sold as a turnkey solution for brokers and banks to run a forex and CFD business, and
  2. the XTB Online Trading retail forex brokerage brand, which offers retail clients trading on either xStation (X Open Hub’s platform), or MT4. XTB held under £480,000 of client money (USD $745,000) as at year-end 2014

While the company blamed XTB’s poor retail showing on ‘overall macroeconomic conditions’, we believe it was mainly due to a cut in ad and marketing budget.

XTB has put in place a strategic plan during 2015 aimed at reversing the trend of falling revenues. It has been focusing on Europe and Latin America, including the creation of a subsidiary in Uruguay to serve that region. And of course, the company plans to up its ad budget.

XTB also moved its headquarters to London’s Canary Wharf.

XTB’s income statement and balance sheet for 2014 follow:

XTB income statement 2014

XTB balance sheet 2014


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