Plus500 reports bumper Q1 results, EBITDA hits $161 million

abdelaziz Fathi

Plus500 Ltd (LON:PLUS) said revenues between January and March were $271 million, up by almost two thirds from $161 million in the fourth quarter of 2021.

Plus500

The London-stock market listed broker was heading for bumper quarterly results as operational and financial performance throughout Q1 2022 was upbeat over a yearly basis.

In a market update, Plus500 reported its Q1 revenue was up 33 percent YoY from $203 million a year earlier. At the bottom line, the spread betting and CFDs broker told investors that it earned $161 million in Q1 2022’s EBITDA, which was also higher by a third from $121 million in Q1 2021. Compared to the previous quarter, the figure shot up by 130 percent when weighed against $71 million in the three months thought December 2021.

Plus500, which sponsors Atlético de Madrid, also saw its Average Revenue Per User (ARPU) improving to $1,534, up from $937 in Q4 2021, or 64 percent higher quarter-over-quarter. The figure also doubled from $753 the year prior. Plus500 attributed the better AUAC result to the proportion of high value customers, which also provides potential for increased future revenues.

In terms of the Average User Acquisition Cost (AUAC), Plus500 reported a meaningful increase as the onboarding costs nearly tripled year-over-year to $1,416, which was well above $473 in Q1 2021.

In an update for the period ended March 31, the company highlighted “consistent strength” in customer income and said this supported a strong revenue performance in the quarter just ended.

However, the group’s client on-boarding activity deaccelerated in the first quarter with the number of new customers falling by 62 percent to 33,740 compared to 89,406 reported back in Q1 2021. But on a quarter-over-quarter scale, Plus500 had still seen healthy numbers of new customers sign up when compared against 33,187 in the fourth quarter.

Plus500 enters new markets

Additionally, the number of active clients decreased between January and March to 176,642, down 35 percent against 269,743 over the same period in 2021.

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.’

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.

David Zruia, Chief Executive Officer, commented: “Plus500 has produced excellent results for Q1 2022, continuing our significant operational and financial momentum over recent years, and validating our clear strategic roadmap. Our on-going investments in developing our position as a global multi-asset fintech group will enable future growth. In particular, we continue to make organic investments in technology, marketing and our people, as well as actively targeting additional acquisitions and initiating potential strategic partnerships.”

The CFDs broker was also encouraged by its entry into the futures and trading markets following acquisitions of Cunningham Commodities, a futures commission merchant, and CTS, a technology trading platform partner.

“Integration of US acquisitions is well underway, driven by continued investment in technology and people, with the Group obtaining all the clearing membership privileges required to clear exchange-traded futures and options on futures on the CME Group’s exchanges,” the company said.

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