12th Oct 2015 07:38
LONDON (Alliance News) - Plus500 Ltd on Monday reiterated that it expects revenue in 2015 to be higher than in the prior year, though profitability is still expected to lag.
Plus500, which allows retail customers to trade derivative financial instruments, is in the process of being acquired by Playtech PLC, a gambling and financial trading company. The deal was agreed after Plus500 ran into regulatory trouble over the way it verifies customers in the UK.
Plus500 said revenue amounted to USD80.9 million in the three months ended September 30, compared with USD56.2 million in the corresponding period the prior year. New customer numbers rose to 17,047 from 14,850. Active customers rose to 52,727 from 43,547.
Average revenue per user rose to USD1,534 from USD1,290, while average user acquisition cost - the price of attracting new customers - was up to USD1,468 from USD1,005.
Plus500 said revenue totalled USD207.9 million in the first nine months of 2015, compared with USD162.4 million in the prior year. New customer numbers rose to 69,333 from 47,523. Active customers rose to 117,56 from 85,101.
Average revenue per user rose to USD1,769 in the first nine months from USD1,908, while average user acquisition cost - the price of attracting new customers - was up to USD1,142 from USD826.
"The group continues to be the subject of regulatory scrutiny. However, throughout the period Plus500 has continued to work with, and provide any requested information to, the relevant regulators in the jurisdictions that it operates in but is currently not the subject of any restrictions on its business operations. The group has also been working closely with its professional advisors to review and, where necessary, improve the regulatory aspects of its trading model," Plus500 said.
Playtech in September said that the "high profile nature" of the acquisition meant that regulatory approval was taking longer than anticipated, though still within the relevant regulatory and statutory timetables.
"As previously announced, the statutorily required regulatory assessment of the acquisition is expected to be completed by the end of November 2015," the company added.
Plus500 shares were up 0.4% at 356.00 pence on Monday morning.
By Samuel Agini; [email protected]; @samuelagini
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