Plus500 cashes in on global growth push as profits rise
Fintech trading platform Plus500 said today it was reaping the rewards of its global growth push as the firm reported a boost in profits and revenues in the first half of the year.
The London-listed Israeli firm said revenues jumped 15 per cent to $368.5m in the first six months of the year while its earnings before deductibles jumped 17 per cent to $174.1m.
Plus500 said it was cashing in on the lucrative US futures market as it ramped up growth globally.
“We made significant progress in optimising our growth opportunities in the US and Japan, where we continue to make substantial investments to take advantage of the opportunities ahead,” David Zruia, chief executive, said in a statement.
“Earlier this year the group obtained a license in the United Arab Emirates, demonstrating further progress in diversifying our geographic footprint across high growth markets,” he added.
Zruia told City PM earlier this year that its US expansion could deliver some $250m in revenues in the coming years.
The firm also dished out we some $214m to shareholders via share buybacks and is set to line pockets further tomorrow with a $29.9m dividend payout.
Analysts at Liberum cheered the numbers this morning and said the market “continues to underappreciate the strength of Plus500’s business model”.
“A unique, proprietary tech stack underpins best-in-class marketing while the diversification strategy is building out a geographically spread, multi-asset, fintech platform,” Nick Anderson, an analyst at Liberum, said.
The record levels of buy-backs announced by the firm over the past year also signal a “very clear commitment to maximising shareholder value”, Anderson added.
Shares in the firm jumped nearly three per cent today after the update but the fintech is trading down over 15 per cent in the past six months.
Analysts are pricing in a slowdown in growth over the next six months as lower volumes curtail revenues.