25th Oct 2021 08:05
(Alliance News) - Plus500 Ltd said Monday its performance in the third quarter was resilient, despite falling behind last year's performance, and that its annual results should come in ahead of analyst expectations.
In the three months to the end of September, the online trading platform reported a 2% slip in revenue to GBP211.4 million from GBP216.4 million a year before, but has nearly doubled from GBP110.6 million from the third quarter of 2019.
Earnings before interest, taxes, depreciation and amortization fell 4% year on year to GBP128.6 million from GBP134.2 million but is up 83% from GBP70.1 million two years ago.
"Plus500 delivered another excellent performance in the third quarter 2021, maintaining the strong operational momentum achieved in previous periods. This has been primarily driven by the strength and agility of our technology and our ability to effectively respond rapidly to market developments, news events and customer requirements," Chief Executive David Zruia said.
Plus500 added 26,169 new customers in the third quarter, slowed sharply from 46,238 in the same period the year before, but 7% ahead of the 24,359 two years ago.
Active customers, which includes customers who made at least one real money trade during the period, stood at 166,310, down from 197,976 the year before but up from 110,939 two years ago.
The rise from two years ago was attributed to "significant investment" in the company's marketing technology.
Average revenue per user improved 16% year on year to USD1,271 and is up 27% from two years ago.
In the first nine months of 2021, Plus500 reported revenue of USD557.6 million, down 29% from USD780.6 million a year before but more than doubled from USD258.6 million two years ago. Ebitda was down 36% year on year to USD316.2 million from USD496.0 million but up sharply from USD135.7 million two years ago.
Zruia continued: "We aim to access future growth through continued organic investment and targeted bolt-on acquisitions, as we continue to expand our CFD offering, launch new products and deepen engagement with our customers. Supported by our on-going success in accessing such growth opportunities, we look forward to delivering sustainable growth over the medium to long term."
The Israel-based company said its new share dealing platform, 'Plus500 Invest', is now operational in a number of countries in Europe
Going forward, Plus500 said it is making substantial investments to build its position in the US retail trading market in futures and options on futures and to support launches of Plus500 Invest in more European countries over the coming quarters.
Looking ahead, Plus500 expects annual 2021 revenue and Ebitda to be ahead of current compiled analysts' consensus forecasts. Current company-compiled consensus forecasts annual revenue of USD55.8 million and Ebitda of USD277.9 million. In 2020, it recorded revenue of USD872.5 million and Ebitda of USD515.9 million.
"The board's confidence about the outlook for Plus500 is further bolstered by the significant strategic and operational investments now being made by the company, enabled by the group's strong financial position and cash generative and scalable business model. While these investments will moderately impact Ebitda margin over the coming quarters, they will enable the group to deliver sustainable growth over the medium to long term," Plus500 said.
The stock was up 2.1% at 1,422.00 pence in early trade on Monday.
By Paul McGowan; [email protected]
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