Plus500’s revenue surges 500 per cent as trading activity booms
Plus500 has reported “exceptional” revenues and earnings in the first quarter, reflecting increased levels of customer activity as the coronavirus crisis hit.
The spreadbetting platform increased revenues in the first quarter by 487 per cent to $316.6m, compared to the same period last year. It is equivalent to 89 per cent of full year 2019 revenues, resulting in Ebitda of c. $231.6m for the quarter.
Plus500’s trading platform allows customers to bet on whether a share price will rise or fall.
The marked increase in revenue has been achieved through the increasingly volatile global markets. It has in turn driven higher customer trading, with customer income representing approximately 74 per cent of first quarter revenue.
Plus500 also reported significant new customer acquisition of 82,951 which it says reflects the “strength and scalability of the group’s technological and marketing capabilities.”
It represents an increase of 289 per cent from the same period last year, and a 326 per cent rise from last quarter.
The platform said the average deposit per active customer in the quarter was $3,595, up from $2,153 in the same period last year. Plus500 says it shows “confidence in, and intention to rade on, our trading platform.”
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The board has reiterates its shareholder returns’ policy to return at least 60 per cent of net profits to shareholders, distributed through a combination of dividends and share buybacks.
Chief executive Asaf Elimelech said: “Our history to date has proven how we can cope with exceptional market conditions such as those at present.”
“As a result of the exceptional first quarter performance, revenue and profitability for the full year are expected to be substantially ahead of current consensus expectations. However, as we remain at an early stage in the financial year, and there are global markets uncertainties as well as ongoing regulatory changes, it remains difficult to predict the outcome for the full year.”
Shares are up 7.91 per cent.