Plus500 records steady third quarter revenues after a jump in customers
Shares in online trading services firm Plus500 are up almost 6 per cent in today’s trading, after a larger than expected increase in third quarter customers.
The firm’s trading update revealed a 10 per cent annual increase in third quarter revenue to $110.6m (£86.3bn), which was in line with expectations.
Read more: Pre-tax profit at online trader Plus500 plunges by 50 per cent
EBITDA for the contracts-for-difference trader was $70.1m (£54.4m) for the quarter, which was a 39 per cent increase in comparison to its Q3 in 2018.
Plus500 also recorded an 18 per cent increase in customers in the three months to 30 September, after the company “benefitted from geopolitical events in the quarter”.
Market volatility, stemming from the US-China trade war, protests in Hong Kong and Brexit uncertainty, led to more customers betting on stock fluctuations.
The number of active customers also increased annually by 9 per cent to 110,939 in the third quarter in comparison to 2018.
Asaf Elimelech, chief executive officer of Plus500, said: “Like all operators in the sector, Plus500’s performance for the remainder of the year is dependent, among other things, on financial market conditions providing sufficient trading opportunities for customers.
“We are confident we can continue to outperform our peer group in terms of customer acquisition, by maintaining the level of highly targeted marketing investment to exploit market opportunities as they appear.”
The positive results come after a difficult year for Plus500.
Read more: More than £900m value wiped off Plus500 as share sell-off continues
The company’s stock price has more than halved from a high of 1647p in February, after European Union and Australian regulations curbed consumer confidence.
The sanctions essentially cracked down on the amount of money amateur traders can borrow from brokers as they bet on market movements.