Global multi-asset fintech group operating trading platforms, Plus500, has released a trading update for the half year ended June 30, 2022.
Plus500 claims to have achieved solid operating performance in the first half of 2022, supported by the ability to attract and retain higher value customers. This was achieved despite the decline in volumes in the financial sector during the period. Given this strong performance, the Company’s Board of Directors expects that Plus500’s revenues and EBITDA for the current financial year will exceed current market expectations.
Plus500 recorded another period of strong operational and financial performance in the first half of 2022, including new businesses in the United States, supported by the positive trend seen in recent years and the ability and strength of the Group’s proprietary technology to access market opportunity.
Clent income, a key measure of the Group’s underlying performance, was $ 339.8 million in H1 2022 (H1 2021: $ 379.2 million), of which $ 151.8 million in Q2 2022 (Q2 2021: $ 157.7 million). The increase in the Group’s revenues reflects the commercial performance of customers, amounting to 171.6 million dollars in the first half of 2022 (first half 2021:) 33.0 million (dollars), of which 88.7 million dollars in second quarter 2022 (second quarter 2021:) 14.7 million (USD).
The Group acquired 57,275 new customers in the first half of 2022 (first half of 2021: 136,980), of which 23,535 in the second quarter of 2022 (second quarter of 2021: 47,574). The Group’s active customer base was 216,928 in the 1st half of 2022 (1st half 2021: 333,940), of which 145,506 in the 2nd quarter 2022 (2nd quarter 2021: 209,465).
David Zruia, Chief Executive Officer, commented: “Plus500 continued to perform above expectations in the first half of 2022, supported by the positive trend of recent years and our market-leading proprietary technology. We have made significant progress in realizing our strategic priorities, particularly with regard to the great growth opportunities in the United States, where we continue to invest substantially ”.
The Company has launched a new global advertising campaign to promote brand awareness in strategic markets, thus ensuring that the Group remains well positioned to attract and retain a higher level of customers over the medium to long term.
Significant progress in delivering major growth opportunities in the United States.
During the period, Plus500 made substantial progress in the rapidly growing US futures market. First, the Group has taken on a new strategic position as an infrastructure provider in the rapidly growing US futures market, supporting institutional clients in their trading, clearing and settlement activities. Second, it has developed, and is expected to launch in the second half of 2022, a new trading platform for the retail futures market in the United States, to take advantage of the recent initiatives and product launches devised by the various exchanges operating in the United States. US futures market to increase market accessibility to the retail public.
Plus500’s financial position remains solid and the Group continues to be debt-free, with cash balances of over $ 950 million as of June 30, 2022 and consistently high levels of cash flow. Bearing in mind the Group’s strong financial position and reflecting the Board of Directors’ confidence in Plus500’s future prospects and its opinion on the current value of the Company’s shares, Plus500 announced share repurchases totaling approximately 105.0 million. dollars since the beginning of fiscal year 2022. During the first half of the year, the Company repurchased 2,670,651 shares, at an average price of £ 14.98, for a total cash consideration of $ 51.7 million.
David Zruia, Chief Executive Officer, added: “In addition, during the reporting period, the Group continued to provide shareholders with excellent levels of returns, both through the recent dividend payments of $ 60.0 million, and through share repurchase for a total of $ 105.0 million, which underscores the opinion of the Board of Directors on the current value of the Company’s shares. Our continuous strategic, operational and financial drive will ensure Plus500 sustainable growth in the medium to long term, allowing the Group to generate further shareholder value in the future ”.
Outlook – Plus500 remains well positioned for sustainable future growth:
The Board of Directors remains very confident on the Group’s performance for fiscal year 2022 and expects Plus500’s revenues and EBITDA for the current financial year to exceed current market expectations. Plus500 will continue to pursue several important growth opportunities, through organic investments and actively targeting acquisitions, with the expected entry into a number of new markets, including the Japanese retail market. For this reason, the Group remains well positioned to ensure sustainable growth in the medium and long term as a global multi-asset fintech group.
Changes in the Board of Directors:
During the period, Daniel King completed his maximum nine-year term as an independent non-executive director and external director of the board. Anne Grim, Senior Independent Non-Executive Director and External Director, took over from Daniel King as a member of the Board Appointments Committee and Chair of the Compensation Committee, while Steve Baldwin, Independent Non-Executive Director, took over the Daniel King’s post as Chairman of the ESG Committee.
Professor Jacob A. Frenkel, chairman, commented on the changes in the Board of Directors: “On behalf of the Board, I would like to thank Daniel King for his invaluable contribution to the success of Plus500 since his appointment to the Board at the time of the Company’s IPO in 2013. His experience working with international technology companies has been invaluable in optimizing our numerous opportunities that have arisen for the company during his tenure. Furthermore, his leadership, his contribution and his commitment as Chairman of the Remuneration and ESG Committees have been highly appreciated. We wish Daniel all the best for the future ”.
The Company will publish the half year results for the half year ended June 30, 2022 and August 17, 2022.
