Plus500 earnings more than double to $100m

Plus500 has revealed profits more than doubled in the first quarter, supported by strong customer growth and the launch of new trading platforms.

The financial technology firm saw underlying earnings soar to $100.9million in the three months ending March, a 116 per cent jump on the previous quarter when the FIFA World Cup caused a slowdown in activity.

Over 28,200 new consumers joined the group’s platform, while the number who made at least one actual money trade during the period tipped up by 5 per cent to more than 137,000.

Plus500 specialises in selling contracts for difference (CFD), an agreement between an investor and a CFD broker whereby the former bets on the price of an asset over a particular period of time

Having posted a deficit in the fourth quarter of 2022, the business gained $50.1million on customers’ trading positions, which helped its total revenue climb by almost two-thirds to $207.9million.

In February, the Israeli-headquartered company was granted a licence from the Dubai Financial Services Authority to operate in the United Arab Emirates, a significant high-growth territory.

It also expanded its presence in the US futures retail trading market by launching ‘Plus500 Futures,’ having started the business-to-consumer proprietary trading platform ‘TradeSniper’ last year.

However, compared to the same time last year, Plus500’s turnover was 23 per cent lower while principal earnings slumped by 37.6 per cent.

The firm achieved significant growth at the height of the Covid-19 pandemic as economic volatility and global lockdowns encouraged a boom in amateur investing.

But like other investment platforms, it has struggled to hold onto customers and attract new ones since lockdown restrictions began being lifted.

Nonetheless, the group forecasts a ‘sustainable’ level of growth over the medium to long term, with its performance this year set to align with current expectations.

Chief executive David Zruia said: ‘We have a range of extremely exciting strategic growth opportunities ahead of us, particularly in the US futures market, enabling us to accelerate our development as a diversified, global multi-asset fintech group.’

He added: ‘Supported by further organic investments and targeted acquisitions, we remain confident that Plus500 is well-positioned to deliver sustainable growth and strong, consistent returns over the medium to long-term.’

Plus500 specialises in selling contracts for difference (CFD), an agreement involving traders betting on the future price of a financial asset like a commodity or stock without owning the asset in question.

Should the market move in the trader’s favour, they will make a profit, whose size will depend on the amount between the opening and closing trade price.

Besides finance, the company is known for sponsoring an array of sports clubs, including the Chicago Bulls basketball team and European football sides Atalanta, Legia Warsaw and Swiss side BSC Young Boys.

Plus500 shares were 0.2 per cent higher at £17.07 on Wednesday morning and have grown by around 46 per cent over the past three years. 

This post first appeared on Dailymail.co.uk