Plus500 says 2022 revenue to be ‘significantly’ ahead of analysts’ estimates

abdelaziz Fathi

Israeli-based, but London-stock market listed Plus500 said it expects annual revenue and earnings to be ahead of analysts’ estimates even as trading levels normalised from record volumes in the first quarter.

Plus500

Plus500’s board now expects FY 2022 revenue and EBITDA to be ‘significantly’ ahead of current compiled analysts’ consensus forecasts, which were recently upgraded following the company’s Q1 2022 results. It added that its financial position remains “very robust” and the group continues to be debt-free, with healthy cash balances driven by high levels of cash generation.

In April, the group reported that its revenue between January and March were $271 million, up by almost two thirds from $161 million in the fourth quarter of 2021.

The pattern was much the same for its core profits. 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 through December 2021.

Plus500 enters new markets

“The Group’s strong performance so far in FY 2022 has also been driven by the development of new proprietary technologies and product offerings, which will deliver growth and drive expansion and diversification across new geographies. Furthermore, Plus500 will continue to build its strategic position as a global multi-asset fintech group, through organic investments and by actively targeting acquisitions, to help deliver sustainable growth over the medium to long term,” the statement further reads.

The company attributes its optimistic forecasts to a growing customer base, which is beginning to increase again after the Covid-19 had a mixed impact on its onboarding levels throughout the year.

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.

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.

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