(Correcting that Plus500 added fewer new customers in the first half of 2022, not more.)
(Alliance News) - Plus500 Ltd on Tuesday said revenue in the first half of 2022 surged as the contract-for-difference provider benefits from "substantial progress in the significant and fast-growing US futures market".
However, it added fewer than half the number new customers during the period than it did a year before.
For the six months to June 30, revenue was USD511.4 million, up 48% from USD346.2 million a year before. Earnings before interest, tax, depreciation and amortisation was USD305.3 million, up 63% from USD187.6 million. Ebitda margin was 60% in the first half, up from 54% a year before.
The firm said it delivered a strong operational performance, supported by its ability to "attract and retain" higher-value customers, despite lower trading volumes across financial markets during the period.
Plus500 added 57,275 new customers during the first half, down 58% from 136,980 new customers a year before. Active customers were 216,928, down 35% from 333,940. "The company launched a new global advertising campaign during the period to drive brand awareness in key strategic markets, thereby ensuring the group remains well positioned to attract and retain a higher level of customers over the medium to long term," it asserted.
The Israel-based online trading platform expects 2022 revenue and Ebitda to beat current market expectations, remaining "highly confident" about the performance.
Chief Executive Officer David Zruia said: "The group continued to deliver outstanding levels of returns to shareholders during the period, through both recent USD60.0 million dividend payments and our most recent USD105.0m aggregate share buyback programmes, which emphasise the board's view of the current value of the company's shares. Our continued strategic, operational and financial momentum will ensure Plus500 delivers sustainable growth in the medium to long term, enabling the group to deliver further shareholder value in the future."
The company will release interim results on August 17.
Plus500 shares were 1.0% higher at 1,577.00 pence each late Tuesday morning in London.
By Tom Budszus; tombudszus@alliancenews.com
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