Plus500 tracks ahead of expectations in first quarter

Plus500 reported a solid first-quarter performance in an update on Tuesday, with the company tracking ahead of market expectations for the 2024 financial year.

The FTSE 250 firm recorded a 4% increase in revenue year-on-year to $215.6m, and a 2% rise in EBITDA to $102.6m, with an EBITDA margin of 48% for the three months ended 31 March.

New customers increased 13% to 31,949, while active customers decreased slightly by 2% to 134,745.

Average revenue per user expanded by 5% year-on-year to $1,600, and the company’s average user acquisition cost decreased 4% to $1,320.

Plus500 noted that during the period, it secured a clearing membership with Eurex Clearing in January, contributing to its revenue increase.

Despite a decrease in customer trading performance, it said it was confident in its long-term prospects, expecting it to be broadly neutral over time.

Plus500 also highlighted the success of its B2B and B2C businesses, particularly in the US futures market and the UAE, and advancements in customer engagement through new technologies and educational resources like its upgraded Trading Academy.

Financially, the firm remained debt-free with cash balances exceeding $985m as of 31 March.

The company said it returned about $365m to shareholders through dividends and share buybacks during the 2023 financial year.

Looking ahead, Plus500 said its strategic roadmap was designed to capitalise on growth opportunities by expanding its product offering, entering new markets, and deepening customer engagement.

With a focus on technology, marketing, and people, the company said it expected its 2024 results to surpass current market expectations.

“Thanks to our established competitive advantages, continued strategic progress and robust financial position, Plus500 generated another set of strong operational and financial results during the period,” said chief executive officer David Zruia.#

“We continued to deliver against our strategic roadmap; expanding into new markets, developing new products and deepening relationships with our customers.

“In the US futures market, our B2B institutional business will soon launch an innovative new technological offering and we have secured an additional full clearing membership to further enhance our clearing services.”

Zruia said the company’s B2C retail business was performing “extremely well”, ahead of management expectations, adding that its contribution to the recruitment of new customers was already not insignificant.

“As a diversified, global business with a clear and proven strategy, Plus500 is well positioned to continue delivering strong results and attractive returns to its shareholders.”

At 0829 BST, shares in Plus500 were up 1.97% at 2,018p.

Reporting by Josh White for Sharecast.com.