Plus500 Q3 revenue jumps 50% on record customer numbers
Trading platform Plus500 posted a 50% jump in third-quarter revenue on Tuesday as it reported a record number of new and active customers and said it is on track to deliver full-year results ahead of market expectations.
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Revenue in the three months to the end of September rose to $116.5m from $77.5m, while revenue in the nine-month period was up 29% to $304.9m. The company said new customer numbers were up 69% from the third quarter of last year, with active customer numbers also at record levels, up 35%.
Plus500 said its "efficient" marketing activity and retention initiatives led to an increased number of new customer sign ups, customer re-activations and high customer trading levels during the quarter.
Average revenue per user edged up 11% in the third quarter to $1,232 and was 6% higher in the nine-month period at $1,905. The company's cash balances increased from $117m at 30 September 2016 to $203.9m at 30 September 2017.
"Looking ahead to 2018, the board believes that Plus500 is well positioned to take advantage of growth opportunities such as new licences and new instruments, whilst retaining its competitive advantage derived from its lean cost structure and technology leadership; these factors are expected to assist in mitigating the impact of any regulatory changes."
Berenberg said: "In our view an important driver of this performance has been Plus500’s technology platform that has enabled it to roll out and market new instruments faster than peers."
At 1115 BST, the shares were up 4.8% to 1,044.50p.