Plus500 registers steep drop in revenues in Q1 2019

Maria Nikolova

Revenues dropped 65% from the preceding quarter, due to subdued financial markets.

Online trading company Plus500 Ltd (LON:PLUS) has earlier today posted a trading update for the three months to March 31, 2019, with the report revealing a rather dull picture.

Group revenue for the first quarter of 2019 was $53.9 million, this is down by 65% from the revenues of $154.8 million registered in the final quarter of 2018. The drop is even steeper in annual terms, as the revenues in the first quarter of 2018 amounted to $297.3 million. The brokerage blamed the decline on extremely subdued financial markets across most asset types.

The low levels of volatility impacted Active Customer numbers and ARPU. There were 97,921 Active Customers in the period, down 4% on the previous quarter. Average revenue per user was meager $550 in the first quarter of 2019, down from $1,523 in the final quarter of 2018 and down from $1,363 in the first quarter of 2018.

Average user acquisition costs were $1,230 in the first quarter of 2019, down from $1,489 in the preceding quarter but markedly higher from $502 in the first quarter of 2018.

The company did not provide any particular forecasts about its future performance. It just said that it is impossible to predict market conditions for the rest of the year and therefore too early to draw conclusions about the full year outcome based on the Group’s performance over the first three months.

Earlier this year, Plus500 published a rather downbeat forecast for FY2019. Back in February, the company said:

“Following our latest assessment of the impact of the ESMA regulatory measures, FY19 revenue is expected to be lower than current market expectations. This, combined with our intention to maintain our marketing spend, is likely to result in 2019 profit being materially lower than current market expectations”.

Read this next

Web3

US arrests Yune Wang for role in 911 S5 botnet scam

A global malware network, linked to the theft of $5.9 billion in Covid relief funds and crypto crimes, has been dismantled, the Department of Justice (DOJ) announced today. The network was also involved in child exploitation, bomb threats, and various cyberattacks.

Digital Assets

US Treasury official clarifies stance on crypto mixing services

The Financial Crimes Enforcement Network (FinCEN) proposed a rule last year to classify convertible crypto mixing as a “class of transactions” with primary money laundering concerns.

Fintech

Robinhood sweetens US crypto offering with trading API

Robinhood has launched a cryptocurrency trading application programming interface (API) for users in the United States. The new API caters to seasoned crypto traders by enabling automated trading strategies, allowing users to react quickly to market movements and trends.

blockdag

After Retik Finance’s 67% Drop, Investors Turn to BlockDAG’s 30,000x ROI Potential to Recover Their Losses

Explore how BlockDAG’s $37M presale is drawing investors while Retik Finance collapses to $0.403.

Digital Assets

Terraform Labs and co-founder Do Kwon reach settlement with SEC

Terraform Labs and its co-founder Do Kwon have reached a “settlement in principle” with the U.S. Securities and Exchange Commission (SEC) regarding a fraud case, according to a court filing on Thursday.

Market News, Tech and Fundamental, Technical Analysis

FTSE 100 Index Technical Analysis Report 30 May, 2024

FTSE 100 Index can be expected to rise further toward the next resistance level 8325.00, which reversed the price earlier this month.

Chainwire

Sui and Atoma Bring the Power of AI to dApp Builders

The integration of Atoma adds new capabilities to Sui’s flourishing developer ecosystem with unique AI-querying capabilities.

Digital Assets

Talos incorporates DeFi with Skolem acquisition

Talos has acquired Skolem to enable clients to incorporate DeFi into their workflows in a move that sets a new standard for the digital asset OEMS and PMS.

<