Plus500 hikes dividend as revenues rise

Caitlin Morrison
Follow Caitlin
Plus500 sponsors Atletico Madrid (Source: Getty)

Online trading firm Plus500 has hiked its dividend after growing revenue and profit in the year to 31 December.

The figures

Revenue rose 33 per cent to $437.2m (£314.7m) from $327.9m.

Net profit was up 70 per cent to $199.7m, while earnings per share increased 72 per cent to $1.75 from $1.02.

The firm's total dividends per share came to $1.6867, an increase of 91 per cent on the year before, and said total returns to shareholders, which also included a share buyback, came to $199.6m.

Shares were up 12 per cent in early trading.

Why it's interesting

Potential regulatory roadblocks still lie ahead for Plus50, with European and UK watchdogs planning to clamp down on contracts for difference, the group said it has been making "necessary changes" to comply with the proposals.

The company said today that while the regulators' consultations have yet to conclude, "the board believes the proposals are unlikely to have a material adverse effect on the group's business, thanks to its highly flexible business model".

What Plus500 said

"Our continued focus on serving our customers' trading needs through product innovation and technology leadership, combined with our successful marketing activity, has led to strong new customer sign ups, reduced churn in the second half and increased customer activity," said Asaf Elimelech, the group's chief executive.

"We will continue to make the necessary adjustments to comply with regulatory changes as they are announced. Whatever the final outcome of the current ESMA and FCA proposals is, we will implement them in full and adapt accordingly.

"We continue to have a highly flexible business model, a lean cost structure and geographically diversified revenues and operations that help mitigate the impact of regulatory changes on our financial performance. Overall, we anticipate that the industry will consolidate around a smaller number of larger participants, of which we believe Plus500 will be amongst the leaders."

Related articles