7th Apr 2020 10:04
(Alliance News) - Plus500 Ltd on Tuesday said it expects its 2020 results to come in ahead of current market expectations amid surge in revenue in the first quarter.
The online trading services provider reported significantly increased levels of customer trading activity in the three months to the end of March.
As a result, Plus500 said revenue in the first quarter jumped to USD316.6 million, equivalent to 89% of revenue generated in entire 2019. In the first quarter of 2019, revenue totalled USD53.9 million.
In addition, the company said number of new clients more than tripled year-on-year to 82,951 compared to 21,306. Number of active customers almost doubled to 194,024 from 97,921.
Average revenue per active user jumped to USD1,632, the company highlighted, from USD550 a year ago.
Looking ahead, Plus500 said it is benefitting from its operations being entirely online, and said there has been no operational impact from the Covid-19 pandemic to date.
The company confirmed that it will be paying a final dividend for 2019 of USD0.3767 per share on July 13.
In addition, Plus500 said it has repurchased 2.0 million shares during the first quarter, worth USD22.2 million.
"Plus500 has achieved exceptional first quarter results, thanks to our dedicated people working efficiently during these challenging times," said Chief Executive Asaf Elimelech.
"As a result of the exceptional first-quarter performance, revenue and profitability for the full year are expected to be substantially ahead of current consensus expectations," added Elimelech.
Plus500 shares were trading 1.9% higher in London on Tuesday at 1,128.75 pence each.
By Evelina Grecenko; [email protected]
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