13th Apr 2021 09:03
(Alliance News) - Plus500 Ltd on Tuesday reported a continued "positive" operational and financial momentum despite a revenue drop during the first quarter of its 2021 financial year.
The Israel-headquartered online trading services provider said revenue for the three months ended March 31 was USD203.2 million, down 36% from USD316.6 million the prior year.
Earnings before interest, tax, depreciation and amortisation in the first quarter fell 47% year-on-year to USD121.7 million from USD231.6 million.
Plus500 said these decreases were offset by "continued attractive trading conditions," which were supported by "the high quality and resilience of Plus500's proprietary technology in managing elevated platform usage."
The company said it achieved a "record" quarterly active customers number of 269,743 during the first quarter of 2021, an increase of 39% compared with 194,024 active customers in 2020's equivalent period. It said this was driven by its efforts and investment in customer retention.
"Plus500 delivered an excellent performance during the first quarter of 2021, building on the positive momentum achieved in 2020. This performance has been driven by the strength and agility of our technology and its ability to respond rapidly to market developments, news events and customer requirements," said Chief Executive David Zruia.
Looking ahead, Plus500 said it expects financial 2021 revenue and Ebitda to be "moderately" ahead of current compiled analysts' consensus forecasts.
"We are already making progress in delivering this vision, as highlighted by Plus500's excellent performance so far this year. With this progress in mind, and with a market environment that continues to provide compelling trading opportunities for our customers, we remain confident about the outlook for the business," said Zruia.
Shares in Plus500 were up 1.8% at 1,550.00 pence in London on Tuesday.
By Zoe Wickens; [email protected]
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