Plus500 hits record number of new customers

Plus500, an AIM-listed online service provider for retail customers to trade contract for differences (CFDs) internationally, experienced a 47% surge in new customers to 25,083 during the three-month period ending 30 September 2016.

The number customers who deposited real money into their account for the first time was 25,083 during the period. The number of active customers, i.e. a customer who makes at least one trade using real money on the trading platform during the period, increased by 33% to 69,989.

The group’s revenue on the other hand decreased by 4% to $77.5m. Average revenue per user (ARPU) also fell by 28% to $1,107 due to a combination of a continuing increase in active and new customers and a slight decrease in customer churn which is consistent with the previous quarter.

The average user acquisition cost (AUAC) fell by 11% to $1,300. The lifetime value of the group’s customers is however increasing with more higher value customers being added and customer loyalty growing.

The earnings before interest, tax, depreciation and amortisation (EBITDA) margin rose in the third quarter to 43% from 37% in the first half of 2016. The board feel this shows the strength of the company’s business model and its robust operating platform.

The company said its marketing activity has resulted in stable revenues from Western European countries, which accounted for 75% of total sales in the third quarter.

The group also increased its global presence during the period with new licenses secured in Israel and New Zealand.

Now that the company had attracted a record number of new customers, management said it intends to focus on profitability for the remainder of the year and consolidate the benefits of this expenditure.

Chief Executive Asaf Elimelech said: "Our third quarter continued the strong progress of the first half, with a significant number of new customers being gained, and margins recovering. We remain on track to achieve our expectations for the year as a whole."

The share price fell 5.78% to 631.25p at 1012 BST on Monday.