Plus500 says revenue from customer income in first half to date remains at record levels
Heightened levels of market volatility have persisted, and the broker has continued to see a significantly increased level of customer trading activity.
Online trading company Plus500 Ltd (LON:PLUS) today issued an update highlighting the growth in its revenues a result of the ongoing period of heightened volatility of trading across global financial markets.
The company notes that, following the previous trading update issued on April 7, 2020, heightened levels of market volatility have persisted, and Plus500 has continued to see a significantly increased level of customer trading activity. Performance across all financial and operational KPIs remains very strong, the broker says.
“Revenue from Customer Income in the first half to date remains at record levels, with the Group’s financial performance during the second quarter continuing to show further momentum following an exceptional first quarter”, Plus500 says.
The broker forecasts revenue and profitability for the full year to be substantially ahead of current consensus expectations.
Let’s recall that, for the three months ended March 31, 2020, the Group reported revenue of $316.6 million, marking an increase of 487% compared to the same period last year. Plus500 attributed the steep increase in revenues to significant volatility across global financial markets, which has in turn driven higher levels of customer trading activity coupled with an increased rate of new customer acquisition.
The number of active customers increased to 194,024 during the period, a rise of 98% versus the first quarter of 2019. New customer acquisition improved 289% compared to the equivalent period a year earlier.
Adding to the positive news, the company saw a decrease of 48% in average user acquisition costs (AUAC) to $641 compared to the same period last year and a 43% fall compared to the prior quarter, boosting EBITDA margins.
EBITDA in the first quarter of 2020 was approximately $231.6 million, a 1,863% increase on the same period in 2019, with EBITDA margins expanding to circa 73% in the first quarter of 2020 compared to 22% in the corresponding period in 2019.