Plus500 reports robust third-quarter performance

Multi-asset fintech specialist Plus500 reported a robust third-quarter performance on Tuesday, during a period marked by lower market volatility and trading volumes.

The FTSE 250 company’s chief executive officer, David Zruia, expressed satisfaction with its performance, citing a focus on high-value customer acquisition, geographic expansion, and product innovation.

He said Plus500 continued to execute its strategic plans, with notable achievements in the US, Japan, and the UAE markets.

Operational highlights included the launch of a proprietary trading platform tailored for the Japanese retail market and the introduction of ‘Plus500 Futures,’ a new B2C futures trading platform in the US.

Financially, Plus500 reported a 5% increase in group revenue to $168.1m for the quarter, driven by trading and interest income.

EBITDA saw a 10% increase, reaching $80.3m, with an EBITDA margin of 48%, while the average deposit per active customer increased 18% to $5,250.

Plus500 said its strategic progress included establishing a solid position in the US market and enhancing its technological capabilities.

The company said it was continuing to grow its US B2B and B2C businesses, with the launch of ‘Plus500 Futures’ marking a significant milestone in its US expansion.

In the US B2B segment, the company reported substantial progress by onboarding additional introducing brokers and expanding clearing memberships.

Plus500 said its strategic presence in the Japanese market grew with the successful launch of a proprietary trading platform tailored to its retail customers.

The company said it plans to further develop its position in Japan by allocating significant resources to the market.

Additionally, Plus500 said it had made significant strides in the UAE market following the grant of a regulatory licence, while it also obtained a new license in the Bahamas, expanding its global presence to 13 regulatory licences.

Despite lower market volumes and volatility, Plus500 said its performance remained strong, driven by its proprietary technology and ability to attract and retain high-value customers across various markets and financial instruments.

The company also noted that its shareholder returns policy had seen $2bn returned to shareholders since its initial public offering in 2013.

In 2023, it had already announced $350m in returns, equivalent to around 25% of its market capitalisation as of September.

“The board remains confident in the group’s outlook based on its strong competitive positioning, robust balance sheet and clearly stated strategic plans,” Plus500 said.

“Reflecting the ongoing improvement in attracting and retaining high-value, long-term customers, the group anticipates that it will deliver revenue and EBITDA for 2023 that are in line with recently upgraded market expectations.

“Despite the lower market activity levels seen during the period, Plus500’s ability to attract and retain higher value customers continued, enabled by its technology, broad product offering, innovative customer solutions and retention initiatives.”

Plus500 said that for the remainder of 2023 and beyond, it would continue to invest in its technology to ensure that its competitive advantages across customer acquisition, marketing and retention, as well as the progress in launching new products and entering new markets, was maintained.

“Over the medium-term, Plus500’s strategy is to further develop its position as a global multi-asset fintech group by launching new products, entering new markets, expanding its offering in existing markets and deepening engagement with customers.”

At 0849 BST, shares in Plus500 were up 8.72% at 1,421p.

Reporting by Josh White for Sharecast.com.