Plus500 announces new buyback as investment plans pay off
Plus500 announced another round of shareholder payouts after delivering a big increase in new customers and a jump in revenue.
Revenue at the fintech trading platform rose six per cent year-on-year to $768.3m (£609.3m) thanks to a six per cent increase in trading income.
Interest income also rose nine per cent year-on-year, although this makes up a much smaller part of the firm’s revenue.
The firm reported a 30 per cent increase in new customers during the course of the year, rising to 118,010 from 90,944 previously.
Increasing the number of new customers has been a major focus for Plus500, and the firm has invested significantly to attract new traders through marketing initiatives.
“Our commitment to continued strategic investment has established the foundations for growth in future years,” David Zruia, chief executive said.
The firm has also continued to invest in ‘customer retention technologies’, which means that two-thirds of its revenue for over-the-counter products are generated by customers who have been trading for more than three years.
The number of active customers grew by nine per cent to 254,138 while the average deposit per active customer hit $12,000, up from $10,000 last year.
Plus500’s non-OTC business, which includes futures and share dealing, also recorded strong growth. Last year it contributed around 10 per cent of its revenue and 15 per cent of total new customers.
Stuart Duncan, an analyst at Peel Hunt said: “The investment case remains based on growth in non-OTC business, as well as strong cash generation.”
Plus500 reported that its earnings before interest taxes depreciation and amortisation (EBITDA) nudged up one per cent to $342.3m.
Analysts at Panmure Liberum noted that the increase in EBITDA came “despite heavy customer acquisition investment in Q4”.
On the back of its results, announced shareholder returns worth $200m, with a share buyback programme worth $110m and dividends the remaining $90m.
“With our proprietary technology, financial strength, extensive global portfolio of regulatory licences and customer base of over 30m registered customers worldwide, Plus500 is extremely well-positioned for 2025 and beyond,” Zruia said.