10th Jan 2022 08:30
(Alliance News) - Plus500 Ltd on Monday hailed an "outstanding" operational and financial performance throughout 2021 that exceeded market expectations.
The contracts-for-difference trading provider added that it is considering a new share buyback programme, following the completion of the USD12.6 million buyback scheme announced in October.
For 2021, Plus500 said revenue is estimated around USD718 million, supported by customer income - a key underlying growth metric - of USD702 million. The revenue figure is below the USD872.5 million posted in 2020, but higher than the company-compiled consensus analyst forecast of USD655.2 million.
Earnings before interest, tax, depreciation and amortisation are expected to be around USD387 million for the year, down from USD515.9 million the year before.
In addition, Plus500 said its base of active customers during 2021 remained well ahead of pre-pandemic levels, at 406,000, with the number of new customers on-boarded reaching 196,150. The development of the customer base was driven by continued investment in marketing technology, the company explained.
Turning to shareholder returns, Plus500 said that, following the completion of its current share buyback programme and the conclusion of the current closed period, a new programme will be considered by the board.
Since its initial share buyback programme commenced in 2017, the Israel-based firm has acquired around 14.9 million shares at a cost of more than USD211 million, it said.
"This represents a clear validation of the board's confidence in the group's business model and future prospects. In addition, it highlights on-going evidence of the board's diversified approach regarding capital returns to shareholders, which also incorporates dividend payments," Plus500 asserted.
Chief Executive Officer David Zruia commented: "We are pleased to have delivered another strong year of financial performance, as well as making significant progress with our strategic and operational plans to strengthen our position as a leading global multi-asset fintech group. With the group having further strengthened its positioning during 2021, the board remains confident about the future for Plus500 and continues to expect that the group will deliver sustainable growth over the medium to long term."
The stock was up 3.2% at 1,482.50 pence in early trade on Monday.
Plus500 will publish annual results on February 15.
By Will Paige; [email protected]
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