Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks IPOs and placings
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Plus500 tracks ahead of expectations in first quarter
(Sharecast News) - Plus500 reported a solid first-quarter performance in an update on Tuesday, with the company tracking ahead of market expectations for the 2024 financial year. The FTSE 250 firm recorded a 4% increase in revenue year-on-year to $215.6m, and a 2% rise in EBITDA to $102.6m, with an EBITDA margin of 48% for the three months ended 31 March.
New customers increased 13% to 31,949, while active customers decreased slightly by 2% to 134,745.
Average revenue per user expanded by 5% year-on-year to $1,600, and the company's average user acquisition cost decreased 4% to $1,320.
Plus500 noted that during the period, it secured a clearing membership with Eurex Clearing in January, contributing to its revenue increase.
Despite a decrease in customer trading performance, it said it was confident in its long-term prospects, expecting it to be broadly neutral over time.
Plus500 also highlighted the success of its B2B and B2C businesses, particularly in the US futures market and the UAE, and advancements in customer engagement through new technologies and educational resources like its upgraded Trading Academy.
Financially, the firm remained debt-free with cash balances exceeding $985m as of 31 March.
The company said it returned about $365m to shareholders through dividends and share buybacks during the 2023 financial year.
Looking ahead, Plus500 said its strategic roadmap was designed to capitalise on growth opportunities by expanding its product offering, entering new markets, and deepening customer engagement.
With a focus on technology, marketing, and people, the company said it expected its 2024 results to surpass current market expectations.
"Thanks to our established competitive advantages, continued strategic progress and robust financial position, Plus500 generated another set of strong operational and financial results during the period," said chief executive officer David Zruia.#
"We continued to deliver against our strategic roadmap; expanding into new markets, developing new products and deepening relationships with our customers.
"In the US futures market, our B2B institutional business will soon launch an innovative new technological offering and we have secured an additional full clearing membership to further enhance our clearing services."
Zruia said the company's B2C retail business was performing "extremely well", ahead of management expectations, adding that its contribution to the recruitment of new customers was already not insignificant.
"As a diversified, global business with a clear and proven strategy, Plus500 is well positioned to continue delivering strong results and attractive returns to its shareholders."
At 0829 BST, shares in Plus500 were up 1.97% at 2,018p.
Reporting by Josh White for Sharecast.com.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.