Plus500 H1 results boosted by customer growth, Brexit volatility

Contracts-for-difference trading platform Plus500 reported a 25% jump in first-half revenue as net profit rose amid continued growth in active and new customers.

In the six months to the end of June, revenue rose to $158.8m from $127m in the first half of 2015, as net profit increased 10% to $44.5m.

Earnings per share edged up to $0.39 from $0.35 and the company lifted its interim dividend by 9% to $26.7m.

The number of active customers increased 12% to 104,119, while the number of new customers was up 9% to 56,929 – a record for the first half and substantially ahead of expectations, the company said.

Plus500 said that many customers who were not active prior to the EU referendum reactivated their accounts and used the platform and many new customers were added during this period due to the prolonged market volatility.

Chief executive officer Asaf Elimelech said: “Plus500 achieved record first half results whilst continuing to grow both its active and new customers. This performance was driven by continued marketing activity and market volatility; the UK's Brexit decision boosted customer activity in late Q2 - leading to increased new customer sign ups, customer re-activations, and customer trading levels.

“We have started the second half strongly as these new customers deliver growth in revenues with an associated bounce back in margins. We are encouraged by the continuing levels of new and existing customer activity resulting from the market volatility and our own actions as we continue to invest in enhancing the business to deliver future growth.”

At 0817 BST, shares were down 0.6% to 726p.