Plus500: Fintech group tops analysts’ estimates after boost in ‘high-value’ traders
Fintech trading group Plus500 topped market expectations today as it said revenues for its full year swelled to around £683m ($832m) on the back of a boost in “high value, long term” customers.
The Israeli-headquartered London-listed firm, which offers retail traders services like stock trading and contracts for difference, said earnings before deductibles had grown to £373m ($454m) in the months to the end of December – up from £318m ($387.1m) in 2021- after a strong performance throughout the year.
Plus500 was among a crop of retail trading platforms to enjoy bumper growth through the pandemic as retail investors looked to profit from wild swings in the market. Unlike some retail trading firms it has sustained its growth throughout this year however amid a downturn in the market.
Bosses said today the growth was testament to its business model and growth strategy.
“2022 was another excellent year for Plus500, providing further clear evidence of our continued successful execution against our strategic roadmap and key operational objectives,” said chief David Zruia in a statement.
“The Group’s strategic, operational and financial traction continues to be primarily driven by the power of our market-leading proprietary technology and our on-going ability to attract and retain higher value customers over the long term.”
Zruia said the group was doubling down on its investment and was set to deliver “sustainable growth” in the “medium to long term”.
Customers at the trading shop fell despite the jump in revenues, with around 280,000 using its platform compared to 407,374 in in 2021. Chiefs said it had been buoyed by a “substantial amount of higher value, long term customers”.
Trading activity also slumped towards the end of the year as the World Cup stole traders’ attention, Plus500 said.
Analysts cheered the results today and said they marked a “strong performance” for the firm, as revenue and EBITDA figures topped estimates by one and two per cent, respectively.
“The excellent performance highlights the strength of Plus500’s business model, its proprietary technology and the quality of its customer base,” said analysts at investment bank Liberum.
“Going forward, we believe continued delivery against its diversification strategy will sustain performance.”
Shares in Plus500 have been buoyed by a run on strong results after the past 12 months, trading up 14 per cent over the past 12 months. They have tumbled more than 12 per cent from a November peak however.