Key facts
- Plus500 reported first-half revenue of $462.9 million, up 12% year-on-year.
- Customer income increased 24% to $461 million.
- Non-OTC revenue grew 30% to nearly $70 million.
- The company is returning $182.5 million to shareholders via buybacks and dividends.
- Total capital returned to shareholders since 2013 IPO is $3.1 billion.
- Plus500 expects full-year revenue of $811.5 million and pre-tax earnings of $365.1 million.
Plus500, an online financial trading platform, has announced significant returns to shareholders following a successful expansion into the US market. The FTSE 250 company reported its highest customer income in five years, with revenue for the first half of the year reaching $462.9 million, a 12% increase year-on-year. Customer income, which reflects revenue generated directly from client trading, surged by 24% to $461 million.
The company's growth was bolstered by its rapid scaling in the United States, particularly in segments beyond its traditional over-the-counter (OTC) business, such as futures and physical share dealing. Non-OTC revenue saw a 30% jump to nearly $70 million, contributing 15% to the group's total revenue. Plus500 anticipates this division will generate $140 million in annual revenue.
In line with its strong performance, Plus500 revealed plans to return $182.5 million to investors, consisting of a $100 million share buyback program and $82.5 million in dividends. This brings the total capital returned to shareholders since the company's initial public offering in 2013 to $3.1 billion, representing a 12,000% total shareholder return over thirteen years.
During the first half, Plus500 also introduced event-based prediction contracts, a type of financial derivative based on the outcome of future events, primarily focusing on major US sporting events. Despite the revenue growth, earnings before tax saw a modest 1% increase to $188 million. This was attributed to a strategic decision to increase marketing investment, leading to a 20% rise in operating costs to $278.5 million.
Chief executive David Zruia expressed confidence in the company's outlook, expecting full-year performance to align with market expectations of $811.5 million in revenue and $365.1 million in earnings before tax.