Plus500 reports healthy financial results for H1, Q2 of 2022

abdelaziz Fathi

Israeli-based, but London-stock market listed Plus500 has today released its financial results for the first half of its fiscal year ending on December 31, 2022.

Plus500

Plus500 said its performance was driven by the higher levels of trading activity from existing clients, as well as the growing new customers.

The CFDs broker stated that group revenues were $511.4 million in the six months through June 2022, in line with expectations and higher 48 percent than the $346.2 million it booked for the same period in the prior year.

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.

Taking a quarterly perspective, Q2 2022 revenue rose 68 percent to $240.5 million from $143.0 million in the April-June quarter of 2021. The pattern was much the same for its core profits, having doubled its EBITDA to $143.7 million from $65.9 million in the Q2 2021.

Compared to the previous quarter, the figure was lower when weighed against $161 million it earned in the three months through March 2022.

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.

David Zruia, Chief Executive Officer, commented:

“Plus500 continued to outperform in the first half of 2022, supported by positive momentum achieved in recent years and by the power of our market-leading proprietary technology. We made significant progress in delivering against our strategic priorities, in particular the major growth opportunities in the U.S., where we continue to make substantial investment.

“In addition, the Group continued to deliver outstanding levels of returns to shareholders during the period, through both recent $60.0m dividend payments and our most recent $105.0m aggregate share buyback programmes, which emphasise the Board’s view of the current value of the Company’s shares. Our continued strategic, operational and financial momentum will ensure Plus500 delivers sustainable growth in the medium to long term, enabling the Group to deliver further shareholder value in the future.”

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