Plus500 share price jumps as it reveals trading is 'significantly' ahead of expectations

Caitlin Morrison
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Plus500 sponsors Atletico Madrid (Source: Plus 500)

Shares in Plus500 jumped at the open today, after the spreadbetter announced that current trading is "significantly" better than expected.

The stock rose by as much as 8.8 per cent after the company said it anticipates that revenues and profits for the year ending 31 December 2017 will be "significantly ahead of current market expectations". At the time of writing, shares were up 4.9 per cent.

Plus500's shares rocketed last month, when the firm unveiled plans for a share buyback. The group said today that it had continued to trade "very strongly" since that announcement was made.

Meanwhile, trading in the first two quarters of the year was "very positive", with strong new customer sign-ups and reduced average user acquisition costs.

"The outcome of the year will be subject to the balance between the benefit of the positive trading conditions from the two quarters continuing, set against the possible negative impact of the expected regulatory changes in a number of our countries of operation," the company stated.

The Financial Conduct Authority sent spreadbetters' share prices tumbling last year when it announced plans to impose stricter rules on the trading of contract for difference (CfD) products. Just days later, the German financial watchdog Bafin unveiled proposals for more regulation of the CfD market.

"We have had a very successful half year, significantly ahead of our expectations," said Plus500 chief executive Asaf Elimelech.

"This puts us in a strong position for the remainder of the year. We are confident that our flexible business model will enable us to adapt to the upcoming regulatory changes and gives us a competitive advantage that will enable us to deliver another excellent performance this year."

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