Plus500 unveils $120m payout in bid to turn around share price slump
Fintech trading firm Plus500 has unveiled a fresh $120m payout for investors this morning despite reporting a slump in profits compared to last year amid “quieter market conditions”.
The London-listed Israeli firm said that it would put $60m shareholders in shareholders’ pockets via a dividend payout as well as clawing back $60m worth of shares from investors in a buyback programme.
The payout comes despite a slowdown in revenues and profits on the same period in 2022 when investors and retail traders looked to cash in on volatility on the markets.
Plus500 shares are down around 20 per cent on the year. Shares in the firm jumped nearly 4.5 per cent at market open this morning after the announcement of the payout.
Pre-tax profits for the six months came in at $174.9m for the period, down from $312.6m last year.
Plus500 reported revenues of $368.5m for the period, up 15 per cent on the second half of the year but down 28 per cent on the $511.4m made in the first half of 2022.
Chief David Zruia said the fresh payout announced today however demonstrates the “strength of [Plus500’s] balance sheet” and the board’s “continued confidence in the Group’s prospects”.
“Our cash generative earnings model, combined with our continued strategic, operational and financial position, ensures Plus500 is well placed to deliver sustainable growth and strong returns in the medium to long term,” he added.
Bosses doubled down on their guidance for the year and said they remain “confident” about the firm’s performance for the full year despite “quieter market conditions”.
Group revenues and earnings before deductibles for the current financial year are expected to be in line with current market expectations, they added.