Plus500 revenue surges as US prediction markets drive growth
Plus500 reported a rise in revenue after the trading platform pushed into the surging US prediction markets.
Revenue reached a three year record high, increasing 12 per cent year on year to $462.9m (£346m). The firm also pinned the performance on “heightened market volatility”.
Earnings before tax remained flat at $187.5m, after growth was offset by “deliberately increased investment” in customer acquisition, initiatives to attract higher-value consumers and the expansion of the group’s US operations.
This caused the FTSE 250’s customer base to grow 17 per cent, reaching 56,165, while also propelling its customer income to a five year high of $460.8m.
But analysts noted that despite customer numbers ticking up over the six month period, the group experienced higher churn in the second quarter, causing active users to dip.
Rahim Karim, co-head of financial research at Cavendish, said: “Higher than expected churn resulted in active customer numbers coming in marginally below our forecasts, despite higher new customer numbers.
“Whilst we don’t believe it appropriate to read too much in a single quarter’s performance… we believe that the lack of upgrades given the macro environment and share price performance might be perceived as slightly disappointing.”
The fintech’s shares fell 5.4 per cent in early trading to 2,670p, with stock up 27.7 per cent since January.
Prediction market boom
The group launched its retail-trading prediction market offering in February, with users able to trade on contract events tied to real world outcomes across politics and economics.
The firm also capitalised on the growing highly popular sports prediction market, launching regulated sport event-based contracts in June.
The sports segment has boomed in recent months, after US president Donald Trump endorsed its use, while leading brands such as Kalshi and Polymarket marketed aggressively during well-known events.
Plus500’s over the counter (OTC) business, which allows investors to trade directly on the platform, also scaled, entering Canada and Japan while expanding in North America.
Elsewhere, the firm launched 24/5 trading on stocks and ETFs, enabling “around the clock” trading five days a week and widening its product offerings and access to global markets.
The group said the move to extended hours “reflects a structural shift reshaping the industry”, with trading outside of traditional hours now accounting for a “significant and growing share” of retail activity.
Barun Singh, analyst at Panmure Liberum, said: The clearest message from the period is how far the revenue base has widened. Five years ago, Plus500 was effectively a single-product…business.
It now spans OTC, share dealing, futures, options and, most recently, US prediction markets, across both B2C and B2B. That diversification is the point of the strategy, and…its converting into revenue.”
Dividends and share buybacks
The firm anticipates the continued scaling of its US operations, particularly its prediction market offerings, alongside its OTC business.
The board expects full-year revenue and earnings before tax to be in line with current market expectations, supported by a “growing pipeline” of opportunities in both the institutional and retail customer base.