Plus500 profits drop as trading returns to more normal levels

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Average revenues per user were US$1,307 over the period, compared to US$1,718 a year ago

Plus500 Ltd said revenues and profits in its latest half-year fall back sharply after the surge in trading activity at the start of the Covid pandemic.

Revenues fell back 39% to US$346mln in the half-year to end June while profits dropped 48% to US$189mln.

The financial dealing platform said though that this still compares very strongly to the performance in the pre-pandemic environment in the first half of 2019.

Average revenues per user were US$1,307 over the period, compared to US$1,718 a year ago with customer acquisition costs relatively low at US$622, though this is expected to rise as PLUS500 focuses on higher-value customers.

David Zruia, chief executive, said:  “Plus500’s outstanding performance in H1 2021 was driven by the ability of our technology to capture the current market opportunities and to consistently provide high service levels to our customers.   

“We are also delighted to have made significant progress in delivering on our vision to become a global multi-asset fintech group, with the acquisition of Cunningham and CTS, which brings access to the substantial futures and options on the futures market in the US and the recent launch of the ‘Plus500 Invest’ share dealing platform in Europe.”

Due to these developments, Plus500 said it was increasingly confident about the outlook for the remainder of 2021 and beyond.

“With this in mind, the board expects revenue to be significantly ahead of current compiled analysts’ consensus forecasts,” said the statement.

The interim dividend is $0.5921 per share.



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