Key facts
- Plus500's revenue increased 12% year-on-year to $462.9 million, a three-year high.
- Earnings before tax were flat at $187.5 million due to increased investment in customer acquisition and US operations.
- Customer numbers grew 17% to 56,165, with customer income reaching a five-year high.
- The company expanded into US prediction markets, including sports-related contracts.
- Analysts observed higher customer churn in the second quarter, impacting active user numbers.
- Plus500 shares fell 5.4% in early trading but are up 27.7% year-to-date.
Plus500 reported a significant increase in revenue, reaching a three-year high of $462.9 million, a 12% rise year-on-year. This growth was attributed to the company's successful expansion into the burgeoning US prediction markets and a period of heightened market volatility. Despite the revenue surge, earnings before tax remained flat at $187.5 million. This was due to deliberate investments in customer acquisition, attracting higher-value consumers, and expanding US operations. The company's customer base grew by 17% to 56,165, with customer income hitting a five-year high. However, analysts noted higher customer churn in the second quarter, which marginally impacted active user numbers below forecasts. The firm launched its prediction market offering in February and capitalized on the popular sports prediction market by launching regulated sport event-based contracts in June, boosted by endorsements from Donald Trump and aggressive marketing by platforms like Kalshi and Polymarket. Plus500 also expanded its over-the-counter (OTC) business into Canada and Japan and introduced 24/5 trading for stocks and ETFs. Analysts highlighted the diversification of Plus500's revenue streams beyond its original single-product business. The company anticipates continued scaling of its US operations and OTC business, expecting full-year revenue and earnings to align with market expectations.