Plus500 Share News (PLUS)

(Sharecast News) - Multi-asset financial technology company Plus500 reported strong trading in a first-quarter update on Wednesday.

The FTSE 250 firm reported revenue of $207.9m, a 64% increase from the fourth quarter of 2022, and EBITDA of $100.9m, a 116% improvement.

Its EBITDA margin also improved, to 49% from 37%.

The company said it attracted 28,201 new customers in the first quarter - a 10% increase from the previous quarter - bringing the total number of active customers to 137,053, which was ahead 5%.

Average revenue per user (ARPU) increased 57%, to $1,517 in the first quarter from $968 in the final three months of 2022.

The average user acquisition cost (AUAC) decreased 6%, to $1,381 from $1,462.

Plus500 said its solid performance was driven by its investments in product innovation to attract and retain higher-value customers.

It launched 'Plus500 Futures', a new generation of its business-to-consumer (B2C) proprietary trading platform specifically tailored for the US futures retail trading market.

The company also obtained a new licence in the high-growth United Arab Emirates market, expanding its geographic footprint.

Its board said it remained confident over the company's prospects, and was expecting its performance for the full 2023 financial year to be in line with current market expectations.

The company was continuing to build on its strong position in the substantial futures market in the US, supported by its best-in-class technology and robust financial position.

"Plus500 produced another strong performance in the first quarter, again driven by our unique proprietary technology stack proposition, which attracts and retains higher value customers over the long term," said chief executive officer David Zruia.

"We have a range of extremely exciting strategic growth opportunities ahead of us, particularly in the US futures market, enabling us to accelerate our development as a diversified, global multi-asset fintech group with a highly valuable customer base and market leading capabilities.

"Supported by further organic investments and targeted acquisitions, we remain confident that Plus500 is well-positioned to deliver sustainable growth and strong, consistent returns over the medium to long-term."

At 1110 BST, shares in Plus500 were up 0.73% at 1,715.45p.

Reporting by Josh White for Sharecast.com.