Plus500 sees annual results above market view, shares hit record high
By Yamini Kalia
(Reuters) -Online trading platform Plus500 on Monday forecast its annual results would be above market expectations and promised a multi-million dollar return to shareholders, sending its shares up more than 6% to a record high.
The Israel-based company, which said it had seen a 13% jump in new customers in the first half of the year, said it plans to return $185.5 million to shareholders via a $110 million share buyback and dividends of $75.5 million.
It said new customer additions and an expansion into newer markets were expected to help it log better than expected annual results, adding it would focus on relatively newer markets of Japan, U.S. and UAE for the rest of the year.
Like other trading platforms, Plus500 benefited from increased market volatility during the pandemic and in 2022 following Russia's invasion of Ukraine. Despite a quieter 2023, platforms also saw a year-end revenue spike due to heightened volatility arising from the conflict in Gaza.
Plus500, which offers trading services in more than 60 countries, also expects to benefit from potential market volatility in the lead up to the U.S. elections in November.
"The fact active customer numbers have continued to increase despite subdued market conditions highlights the strength of the business," Panmure Liberum analysts said.
Plus500, which in July warned of lower trading volumes in the second quarter due to the Euro 2024 soccer tournament, said group revenue rose 8% to $398.2 million in the six months through June 30, with a 6% increase in core profit.
The shares were up 6.5% at 2,590 pence in morning trade, hitting a record high and giving a year-to-date increase of 62%.
Before Monday's update analysts had on average expected the company to post annual revenue of $697.8 million, with a core profit of $314.6 million, according to a company-compiled consensus.
(Reporting by Yamini Kalia in Bengaluru; Editing by Sherry Jacob-Phillips and David Holmes)
