Plus500 profit rises amid expansion drive
Fintech firm Plus500 has reported a rise in quarterly profit as it continued an expansion drive into markets including Canada, the UAE and India.
Quarterly earnings before interest, taxation, depreciation and amortization (EBITDA) increased 12 per cent to $91.3m (£67m) on revenue of $209.3m.
Plus500 said active customers on its platform had jumped to 132,602 in the three months ended 30 June, from 123,803 the year prior. This contributed to a record $3.1bn in customer deposits over the half-year period.
The London-listed firm, which provides online trading services for clients, said on Monday it remained “confident” of hitting annual revenue and earnings forecasts of $746.2m and $345.2m, respectively.
The company gave back $200m in dividends and share buybacks to its shareholders through the first half of the year as its cash balance topped $925m.
Expansion drive continues
David Zruia, Plus500 chief executive said the London-listed firm had delivered “further operational and financial progress.”
“We expanded our global presence with new regulatory licences in Canada and the UAE, added to our growing list of clearing memberships with ICE Clear US and announced the exciting acquisition of Mehta Equities in India, which will provide us access to the largest retail futures market in the world.
“This progress is underpinned by our proprietary technology which drives our global business model and supports our relentless focus on innovation and growth, enabling the Group to deliver compounded returns through the cycle.”
Shares in Plus500 are up just under 30 per cent this year to date. The firm raised its outlook earlier this year following its acquisition of Mehta Equities, a financial services firm based in Mumbai.
Shareholders revolted in May after chief executive David Zruia took home a $5m pay packet last year, according to a previous report in City PM.