Plus500 reports $3000 in average revenue per user

As reported by the fintech company in its financial statements submitted this afternoon to London Stock Exchange, the group’s revenues amounted to $832 million, up 16 percent from $718 million in 2021.  Plus500 revealed on Tuesday that this performance was supported by a strong level of customer income, which hit $639 million during the year.

Meanwhile, Plus500’ customer trading performance for FY 2022 was $193 million relative to just $15.9 million in the previous year. The broker expects the contribution of this key performance measure to be broadly neutral over time.

At the bottom line, the spread betting and CFDs broker told investors that it earned $454 million in 2022, which was also higher by 17 percent from $387 million in 2021.

Notably, the group continued to add fewer active accounts, saying that 106,000 new accounts were added during FY 2022. The figure was down by 46 percent from the 196,336 clients it onboarded the previous year. As a result, the group’s base of active clients was 280,000 during the year just ended, down by nearly a third from 407,000 in 2021.

Plus500, which recently ended its sponsorship deal with Atlético de Madrid, also saw its Average Revenue Per User (ARPU) improving to $2,966 in 2022, up 70 percent from $1,764 in 2021. Plus500 attributed the better AUAC result to the proportion of high value customers, which also provides potential for increased future revenues.

“The Group continues to expect that AUAC will rise steadily over time, as the Group’s customer profile further shifts to higher value, long term customers and as the Group invests in attracting customers to the new trading products in its portfolio and targeting additional high value customers in strategic geographies,” it said.

In terms of the Average User Acquisition Cost (AUAC), Plus500 reported a meaningful increase as the onboarding costs nearly doubled year-over-year to $1,481, which was well above $877 in 2021.

Customer deposits remained steady, the broker notes, with average deposit per active customer also achieving a record annual level of $8,000 compared to $5,000 the previous year. Total customer deposits in FY 2022 increased to $2.3 billion, up from $2.1 billion in 2021.

“The Group remains highly cash generative, supported by the relatively low levels of capital expenditure as a result of its automation and technological capabilities, with cash generated from operations during the year of $506.8m (FY 2021: $383.0m) and 112% Operating cash conversion achieved in 2022 (FY 2021: 99%),” the statement reads.