18th Feb 2025 09:29
(Alliance News) - Plus500 Ltd on Tuesday hailed a "strong" set of results as it announced a new share buyback alongside revenue growth that was as expected.
The Haifa, Israel-based contracts-for-difference trading platform provider said pretax profit edged up 0.3% to USD337.2 million in 2024 from GBP336.2 million in 2023, as revenue rose 5.8% to USD768.3 million from USD762.2 million.
Revenue comprised trading income of USD711.6 million and interest income of USD56.7 million, which grew by 6% and 9% year-on-year, respectively.
Earnings before interest, tax, depreciation and amortisation improved 0.5% to USD342.2 million from USD340.5 million, although the Ebitda margin narrowed to 45% from 47%.
Figures for revenue and Ebitda were in line with guidance provided by Plus500 in January.
Despite this, shares in Plus500 were 5.3% lower at 2,712.15 pence each in London on Tuesday morning.
The number of new customers grew by 30% to 118,010 in 2024 and active customers grew by 9% to 254,138. However, average revenue per customer slipped by 3.0% to USD3,023 from USD3,116.
Chief Executive David Zruia said he was "delighted" with a "strong set of results".
"Our strong performance was driven by our market-leading proprietary technology, our international brand recognition, and our robust operating fundamentals.
"Our commitment to continued strategic investment has established the foundations for growth in future years," he added.
Plus500 on Tuesday announced a new USD110.0 million share buyback. It also declared a USD0.4025 final dividend and a USD0.8213 special dividend. It had paid a USD0.3911 final dividend and USD0.5551 special dividend for 2023.
Zruia said this takes total shareholder returns to USD2.5 billion since the company's initial public offering in London in 2013.
The new share buyback will begin once the buyback started in August, also worth USD110.0 million, is completed. It will in turn be completed by December 31.
Looking ahead, Plus500 said it "remains confident about the group's future prospects", citing an "extremely robust financial position" and "high performance and collaborative culture".
The firm highlighted the US futures market as "strategically important" and a "multi-year growth opportunity", along with growth opportunities in the United Arab Emirates and Japan.
Growth would be both organic and through bolt-on acquisitions, the company said.
By Jeremy Cutler, Alliance News reporter
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