Plus500 posts half-year trading update
Plus500’s Board has again materially increased its expectations for the Group’s financial performance for the year ending 31 December 2018.
Plus500 is pleased to announce that due to a strong Q2, the Board has again materially increased its expectations for the Group’s financial performance for the year ending 31 December 2018.
Although, as previously reported, market conditions for trading volumes and new customer acquisition returned to more normal levels in Q2 in comparison with Q1, geopolitical events particularly regarding US import tariffs have resulted in higher than expected levels of market volatility. This has resulted in a strong trading performance in the period.
Following the recent regulatory changes announced by ESMA, due to be implemented by August 2018, Plus500UK and Plus500CY began evaluating their respective customer bases regarding Elective Professional Client (“EPC” status in February 2018 and consider 12 per cent. of its customers in the EEA may be eligible for EPC status. Given that this 12 per cent. generate in aggregate approximately 75 per cent. of the Group’s EEA revenue, the Board believes that the Group’s EPC offering puts it in a strong position to maintain revenue from those customers following the implementation of the new ESMA rules. As previously disclosed, the Group’s performance could be impacted by the rate at which customers request to be reclassified, and are accepted, as elective professional clients.
At the same time, the Group continues to diversify those revenues which are outside the EEA, reflecting its new licences, especially in Singapore, which was gained towards the end of 2017.
Notice of results
The Company expects to issue its half year results for the six months ended 30 June 2018 on 13 August 2018.
Asaf Elimelech, Chief Executive Officer, said:
“Plus500 has performed strongly in the half year period and we are pleased to announce a material increase in expectations for the full year. Despite more normal trading conditions, we continue to benefit from new customers acquired over recent periods trading a wide range of instruments.”