Plus500 aims to generate $500M in annual revenue
Celebrating the ‘Capital Markets Day’ on Tuesday, Plus500 this morning announced its long-term goals focused on user base and revenue growth, and a faster pace of shipping its platform to the US.
The Haifa, Israel-based multi-asset trading platform said it aims to achieve an annualised revenue objective of $500 million over a five-year span. To achieve its self-invented metric for annual revenue, Plus500 set goals of expanding existing products, introduction of new products, deepening customer engagement and expanding into new geographies, including the U.S.
“This revenue objective is based on the Group’s current view of the prospects of the business at this particular point in time, and in the context of the unpredictable market conditions experienced in recent years,” the fintech company said.
As reported by in its financial statements submitted last month to London Stock Exchange, the group’s revenues amounted to $511.4 million in the six months through June 2022. This figure was nearly 50 percent higher when weighed against than the $346.2 million it reported for the same semester in 2021.
At the bottom line, the spread betting and CFDs broker told investors that it earned $305 million in H1 2022’s EBITDA, which was also higher by two thirds from $187.6 million in H1 2021.
Notably, the group continued to add more active accounts, saying that they had seen increased levels of trading activity in the third quarter, and that revenue from customer income had been strong. Plus500 onboarded 57,275 new customers during H1 2022 (H1 2021: 136,980), including 23,535 in Q2 2022 (Q2 2021: 47,574). The group’s base of active clients was 216,928 during H1 2022 (H1 2021: 333,940), including 145,506 in Q2 2022 (Q2 2021: 209,465).
In its filing to the stock exchange, Plus500 highlighted the progress it made against the group’s strategic roadmap including obtaining a license in Estonia to operate as an investment firm under the brand ‘Plus500EE AS.’ It added that it continues to be debt-free since inception, with healthy cash balances of more than $950 million as of 30 June 2022 alongside high levels of cash generation.
Plus500 also acquired the Japanese FX firm, EZ Invest Securities, in a move that allows the multi-regulated brokerage firm to offer its service in the Asian country. Further roll-out of ‘Plus500 Invest’, the group’s proprietary share dealing platform, remains on track, it added.