7th Feb 2017 07:55
LONDON (Alliance News) - Online trading platform provider Plus500 Ltd on Tuesday said net profit for 2016 outpaced its expectations thanks to strong revenue growth and a recovery in margins in the second half of the year.
Plus500 recorded a pretax profit of USD151.9 million for the year to December 31, up from USD127.9 million the year before. Net profit, or profit after tax, was USD117.2 million, up 21% from the USD96.6 million reported a year before and ahead of Plus500's expectations.
Earnings before interest, tax, depreciation and amortisation rose 14% to USD151.0 million from USD132.9 million the year before, despite Ebitda margin slimming to 46.0% from 48.2%.
Plus500 said margins improved in the second half of the year, rising to 64% in the fourth quarter thanks to good customer acquisition levels earlier in the year and more targeted advertising spend.
The group's total revenue for the year was USD327.9 million, up 19% from the USD275.6 million reported the year before, driven by growth in new and active customer numbers. New customers increased 23% year-on-year, while active customer numbers rose 14%.
Plus500 said it will pay a total dividend of 88.52 US cents, up 5.0% from 84.05 cents the year before. Its final dividend was increased to 37.99 cents from 29.22 cents a year before.
Plus500 said it has entered 2017 with good momentum intact, with further increase in new customers and good results from its marketing and sponsorship initiatives.
"As a result, we enter 2017 confident we can continue to develop our business and expand into new markets whilst successfully incorporating regulatory changes with the minimum of disruption. Our strong balance sheet, cash generative business model, geographic diversification and competitive market position are expected to enable us to provide good shareholder returns despite continuing short term regulatory uncertainty," said Chief Executive Asaf Elimelech.
By Sam Unsted; [email protected]; @SamUAtAlliance
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