17th Aug 2022 08:58
(Alliance News) - Plus500 Ltd on Wednesday posted a vastly increased interim profit as its technology won over new customers, however active customer numbers dropped by more than a third.
The Israel-based online trading platform said pretax profit in the six months to June 30 jumped by two-thirds to USD312.6 million from USD188.7 million a year prior, the contract-for-difference provider reported.
Revenue surged 48% to USD511.4 million from USD346.2 million.
"Plus500 produced another outstanding performance in the first half of 2022, driven by the power of our market-leading proprietary technology and our consistent ability to attract and retain higher value customers over the long term.
It has over 23 million registered customers. Active customer numbers fell 35% to 216,928 from 333,940 a year ago.
"With continued operational and financial momentum being achieved, we also made substantial progress in delivering against our strategic priorities, in particular the major growth opportunities in the US, where we are continuing to make significant on-going investment, also by becoming a full clearing member of the CME Group Inc exchanges," Chief Executive Officer David Zruia said.
As the company sees further economic potential in the US, it "aims to establish a new technology-based presence in the US retail futures market, utilising its technological expertise and solutions, as Plus500 has done historically with its over-the-counter product offering".
In addition, the company has announced a new USD60.2 million buyback, which will kick off following the conclusion of current share repurchase programmes.
Plus500 added: "Following several positive upgrades to market expectations related to Plus500's financial performance, which took place earlier this year, the board remains optimistic about the group's performance, with sustainable growth to be delivered over the medium to long term."
Plus500 shares fell 3.2% to 1,645.00 pence each in London on Wednesday morning.
By Tom Budszus; [email protected]
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