Shares in Polish Retail FX and CFDs broker XTB fell 12% on Monday after the company issued a statement on its plans in Spain.
As we reported yesterday, XTB said it will effectively cease all activities related to CFD marketing in Spain, in line with new regulations in the country. XTB, however, will continue to operate in the Spanish market and will accept clients based in Spain. The company noted that the changes will likely have a negative impact in the medium and long term on the number of customers acquired in Spain and, consequently, the level of revenue generated from this market.
XTB receives approximately 11% of its revenue from clients based in Spain (2023 data), making Spain one of XTB’s most important markets after its home market of Poland (46% of revenue).
When we published our original article (linked above) on Monday morning, XTB shares were trading down about 5%. However, the selloff intensified as the day continued and XTB closed the day at PLN 64.02, down 12% from Friday’s close of PLN 72.58.
XTB shares had basically doubled from trading in the low-to-mid PLN 30s at the end of 2023, as the company reported record results for the first quarter of 2024 and the market expected more growth was likely. However, the current Spain announcement appears to have spooked markets, both in terms of the immediate impact of the changes on the Spanish market and XTB’s growth prospects moving forward, leading to a Monday selloff from all-time highs in XTB shares.
XTB stock price chart over the last 12 months. Source: Google Finance.