Plus500 sees modest growth in Q1 revenues, EBITDA margin decreases
Israeli-based, but London-stock market listed Plus500 Ltd (LON:PLUS) today reported a 4% increase in revenue for the first quarter of 2024, with figures rising from $207.9 million in Q1 2023 to $215.6 million.
This increase comes as the company continues to expand its product offerings and technological capabilities.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $102.6 million, up 2% from $100.9 million in the same period last year and a 19% from the previous quarter. For Q1 2024, the EBITDA margin slightly decreased to 48% from 49% in Q1 2023 but improved from 45% in Q4 2023.
During the quarter, Plus500 reported a 13% increase in new customers, totaling 31,949, compared to 28,201 in Q1 2023. However, the number of active customers decreased slightly by 2%, totaling 134,745. The average revenue per user (ARPU) increased by 5% to $1,600, while the average user acquisition cost (AUAC) decreased by 4% to $1,320.
In January 2024, Plus500 secured a clearing membership with Eurex Clearing AG, enhancing its capacity to handle derivatives traded on the Eurex Exchange. The broker has seen growth in several key markets, including the United States and the United Arab Emirates, contributing to an increase in revenue and profit from these regions.
With a strong cash balance of over $985 million as of March 31, 2024, Plus500 said it remains well-positioned to continue its growth. The company also returned $33.3 million to shareholders through share buybacks during the quarter.
Throughout the year, Plus500 saw operational and strategic milestones, bringing its total number of global regulatory licenses to 13. Key developments included expanding its US futures business, launching a localized retail trading platform in Japan, and making progress in the UAE market following the earlier acquisition of a regulatory license.
Additionally, Plus500 integrated its US acquisitions and introduced ‘Plus500 Futures’ in the US market. In addition, Plus500 entered the Japanese market with a new trading platform tailored for local retail traders. The UAE market showed promising growth following the regulatory license granted by the Dubai Financial Services Authority (DFSA), and the company also secured a new regulatory license from the Securities Commission of the Bahamas in July 2023.
