12th Feb 2020 08:23
(Alliance News) - Plus500 Ltd on Wednesday reported a big decrease in revenue and profit in 2019, but noted that performance improved in the second half due to "increased trading opportunities identified by customers" and more volatile market conditions.
The contracts-for-difference trading service provider also launched a new share buyback programme.
Pretax profit was USD189.3 million in 2019, down from USD503.0 million in 2018. Revenue was USD354.5 million, down from USD720.4 million.
Plus500 said the first half of 2019 was hurt by "extremely low volatility" in the first quarter. However, strong second half of the year was "mainly driven by increased trading opportunities identified by customers, reflecting more volatile market conditions during the rest of the year."
Also, the company noted that 2019 marked the first full year of "trading under the new regulatory regime introduced by European regulators, with customer trading patterns adjusting through the year".
The company declared final dividend of USD0.3767 per share, a decrease from USD0.6191 a year ago. This reduced the total dividend for 2019 to USD0.6501 per share from USD1.9977 in 2018.
The company said that positive momentum has continued into 2020, reflecting heightened levels of volatility in the financial markets due to "global events".
Chief Executive Officer Asaf Elimelech said: "Looking forward to 2020 we are confident of the prospects for the group as we focus on further strengthening our customer offering and market positions, thereby delivering growth and further strong shareholder returns."
In another statement, Plus500 said it plans a new share buyback programme for up to an additional USD30.0 million of the company's shares, following the completion of the USD50.0 million buyback programme announced back in August.
The new share buyback programme, managed by Credit Suisse Securities (Europe) Ltd, will run until August 31.
Plus500 shares were trading 2.9% higher in London at 937.40 pence each on Wednesday.
By Loreta Juodagalvyte; [email protected]
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