Shares of XTB plummeted 12% on Monday in response to the company’s announcement regarding its operations in Spain Market. XTB disclosed plans to scale back marketing activities related to CFD trading in compliance with new regulatory measures introduced in the country. Despite this adjustment, XTB emphasized its commitment to maintaining operations and continuing to serve clients based in Spain.

The decision to reduce marketing efforts in Spain is going to have a negative impact on XTB’s client acquisition and revenue generation in the medium to long term. Currently, Spain stands as a crucial market for XTB, contributing approximately 11% of the company’s total revenues, following its home market in Poland, which accounts for 46% of revenues.

XTB Faces 12% Shares Plunge Amid Spain Market Adjustment

The market reacted sharply to XTB’s announcement on Monday. Initially, shares were down about 5% in early trading, but selling pressure intensified throughout the day. XTB closed the trading session at PLN 64.02, marking a significant decline from Friday’s closing price of PLN 72.58. This downturn comes after a period of substantial growth for XTB’s stock, which had nearly doubled from its late 2023 lows in the mid-PLN 30s. The surge had been fueled by strong financial results reported for the first quarter of 2024 and optimistic expectations for future growth.

Investor sentiment turned cautious following the news from Spain, reflecting concerns over both the immediate impact on XTB’s operations in the Spanish market and the broader implications for its growth trajectory. The market’s reaction underscored apprehensions about the potential challenges XTB may face in adjusting to regulatory changes and maintaining its growth momentum.

The abrupt decline in XTB’s share price on Monday marked a stark reversal from recent highs, signaling a turbulent period for the company as it navigates regulatory shifts and their implications for its business strategy moving forward.

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