TIDMPLUS
RNS Number : 4186F
Plus500 Limited
10 July 2023
10 July 2023
Plus500 Ltd.
("Plus500", the "Company", or together with its subsidiaries the
"Group")
Half Year 2023 Trading Update
Strong financial and operational performance driving shareholder
returns
Continued strategic progress
FY 2023 expected to be in line with current market
expectations
Plus500, a global multi-asset fintech group operating
proprietary technology-based trading platforms, today issues the
following trading update for the six months ended 30 June 2023
([1]) .
Another strong operational performance was delivered in H1 2023,
supported by Plus500's continued ability to attract and retain
higher value customers, driving higher lifetime values. This strong
performance was achieved despite lower volumes across the wider
financial markets during the period. Accordingly, the Board of
Directors of the Company (the "Board") expects that Plus500's
revenue and EBITDA for FY 2023 will be in line with current market
expectations [2] .
Continued strong operational and financial performance
Plus500 made good progress against its strategic initiatives,
delivering another period of strong operational and financial
performance during H1 2023, benefiting also from the Group's
operations in the US. This performance was supported by the
positive momentum achieved in recent years, the growing breadth of
Plus500's product offering, deepening customer relationships and
the proven strength of the Group's market-leading proprietary
technology.
Financial and operational highlights (unaudited)
H1 2023 H2 2022 Change
%
$368 .5
Revenue m $321.2m 15%
---------- ------- ------
EBITDA [3] $ 1 74.1m $148.5m 17%
---------- ------- ------
EBITDA Margin 4 7% 46% 2%
---------- ------- ------
Revenue for the period was $3 6 8. 5 m, comprising of $34 6 . 2
m in trading income and $22. 3 m in interest income, which is also
included within EBITDA 3 for the period, including revenue of $160.
6 m in Q2 2023 (Q 2 2022: $240.5m). Customer Income ([4]) , a key
measure of the Group's underlying performance, was $30 4 . 3 m in
H1 2023 (H2 2022: $299. 8 m ) , including $146. 5 m in Q2 2023 (Q 2
2022: $151.8m), with Customer Trading Performance ([5]) of $ 41 . 9
m in H1 2023 (H2 2022: $21.4m), including $( 8.2 m) in Q2 2023 (Q2
2022: $88.7m).
The Group successfully onboarded 50, 449 New Customers ([6])
during H1 2023 (H2 2022: 49,274), including 22, 248 in Q2 2023 (Q2
2022: 23,535). The Group's base of Active Customers ([7]) was 175,7
62 during H1 2023 ( H 2 2022: 1 77 , 946 ), including 122,8 33 in
Q2 2023 (Q2 2022: 145 , 506 ).
Strategic progress
Plus500 made further strategic progress by entering new markets
and launching new products during the first six months of FY 2023.
This strategic progress enabled the Group to continue diversifying
its revenue streams, geographic footprint and business model and
has further strengthened its status as a market leading, global
multi-asset fintech group, delivering an exceptional service for
the Group 's customers globally.
Further optimising Plus500's growing position in the substantial
futures market in the US
Excellent traction was made during the period in the substantial
US futures market where the Group is targeting a number of major
growth opportunities.
B2B Opportunity
The Group continued to develop its strategic position in the US
as a market infrastructure provider, supporting institutional
clients with brokerage-execution and clearing services. This B2B
offering will continue to be driven by the Group's robust financial
position, its highly differentiated technological capabilities,
ongoing operational investment and its position as a full clearing
member of the CME Group exchanges and the Minneapolis Grain
Exchange (MGEX). The Group is currently in the process of obtaining
clearing memberships from additional exchanges.
B2C Opportunity
To leverage the significant US retail trading opportunity, and
following the launch of 'TradeSniper' in Q3 2022, Plus500 recently
launched 'Plus500 Futures', a new intuitive proprietary futures
trading platform specifically tailored for the sizeable US retail
trading market, both on iOS and Android. This new offering will
enable the Group to further benefit from the continued demand for
and increase in accessibility to the futures market for the US
retail trading community.
The launch of 'Plus500 Futures' follows the launch of another
new offering, 'event-based contracts', now available on
TradeSniper's iOS and Android applications. This new offering
allows trading in sizable contracts tailored for the retail
community over the world's most trusted benchmark equity indices,
commodities, and foreign currency futures markets. This represents
an innovative trading solution which Plus500 has introduced to
customers in the growing futures retail market.
'Plus500 Futures' and 'TradeSniper' uniquely offer customers a
fully holistic solution of onboarding, depositing and trading in
futures contracts, and will continue to be developed by Plus500 to
provide a consistent, best-in-class experience for its
customers.
Significant progress made in the high growth UAE market
A new regulatory licence in the high growth UAE market was
obtained during the period, further expanding Plus500's geographic
footprint. The Group's operation in the UAE is already fully
functioning and the Group is pleased to be in line with its
strategic roadmap driven by the rapid progress made in developing
Plus500's market position in this significant market.
Major growth opportunity in Japan
Plus500 made further progress in broadening the Group's
geographic footprint within the substantial Japanese trading market
through the development and the expected upcoming launch of its new
proprietary trading platform tailored specially for the Japanese
market.
Plus500 recognises Japan as one of its key strategic markets and
will apply there the Group's financial and technological strength
to scale and develop its local position. Accordingly, the Group
intends to allocate substantial financial and personnel resources
on an on-going basis, in order to maximise these opportunities in
the medium term.
More than $240m returned to shareholders so far in FY 2023,
supported by Plus500's robust financial position
Plus500's financial position remains robust and the Company
continues to be debt-free since inception. The Group maintains
healthy cash balances, with approximately $850m held in cash as of
30 June 2023.
With the Group's strong financial position in mind, and
reflecting the Board's confidence in the future prospects of
Plus500 and its view of the current value of the Company's shares,
during the first half of the year, the Company has repurchased
11,485,961 shares, at an average price of GBP14.9 3 , for a total
cash consideration of $214.1m.
In line with the Company's capital allocation and shareholder
returns policy, out of the 11,485,961 shares repurchased during the
period, 7,327,605 shares were acquired by the Company on 13 June
2023, representing approximately 8.2% of the Company's issued share
capital as at such date (excluding treasury shares, which are not
entitled to dividends and have no voting rights at the Company's
general meetings), for a total cash consideration of $127.5m.
Looking ahead, and further demonstrating the Board's confidence
in the future prospects of Plus500, the Company announced on 19
June 2023 that it had convened an EGM to be held on 24 July 2023
for the purposes of authorising the Company to make additional
purchases of its shares, up to 10% of the Company's issued share
capital.
Outlook - Plus500 remains well positioned to deliver sustainable
growth
The Board remains highly confident about the Group's performance
for FY 2023, and therefore anticipates that Plus500's revenue and
EBITDA for the current financial year will be in line with current
market expectations.
Plus500 will continue to pursue several major growth
opportunities, through continued investments in its proprietary
trading platforms, technological marketing capabilities and by
actively targeting attractive acquisition opportunities. Plus500
remains well-positioned to deliver sustainable growth and value for
its shareholders over the medium to long term, harnessing its
position as a global multi-asset fintech group.
The Company will publish its half-year results for the six
months ended 30 June 2023 on 14 August 2023.
David Zruia, Chief Executive Officer, commented:
"Plus500 continued to perform strongly in the first half of
2023, building on the positive momentum achieved in recent years,
leveraging our differentiated, market-leading, proprietary
technology and benefiting from our increasingly diversified revenue
streams, broadened product offering, deep customer relationships
and the structural growth drivers in our end markets. We made
significant progress in optimising our growth opportunities in the
US and Japan, where we continue to make substantial investments to
take advantage of the opportunities ahead. Earlier this year the
Group obtained a license in the United Arab Emirates, demonstrating
further progress in diversifying our geographic footprint across
high growth markets.
"In addition, we continued to deliver outstanding levels of
returns to our shareholders during the period, through $214.1m in
share repurchases and the $ 29 . 9 m dividend payment due tomorrow,
on 11 July 2023, which emphasise the Board's view of the current
value of the Company's shares. Our cash generative earnings model,
combined with our continued strategic, operational and financial
position, means that Plus500 is well placed to deliver sustainable
growth in the medium to long term, enabling the Group to deliver
further shareholder value in the future."
For further details
Plus500 Ltd.
Elad Even-Chen, Chief Financial +972 4 8189503
Officer ir@plus500.com
Dentons Global Advisors
James Melville-Ross +44 (0)20 7664 5095
James Styles plus500@dentonsglobaladvisors.com
Leah Dudley
About Plus500
Plus500 is a global multi-asset fintech group operating
proprietary technology-based trading platforms. Plus500 offers
customers a range of trading products, including OTC
("Over-the-Counter" products, namely Contracts for Difference
(CFDs)), share dealing, as well as futures and options on futures.
The Group retains operating licences and is regulated in the United
Kingdom, Australia, Cyprus, Israel, New Zealand, South Africa,
Singapore, the Seychelles, the United States, Estonia, Japan and
the UAE and through its OTC product portfolio, offers more than
2,500 different underlying global financial instruments, comprising
equities, indices, commodities, options, ETFs, foreign exchange and
cryptocurrencies. Customers of the Group can trade its OTC products
in more than 50 countries and in 30 languages. Plus500 does not
permit customers located in the US to trade its OTC products.
Plus500 does not utilise cold calling techniques and does not offer
binary options. Plus500's trading platforms are accessible from
multiple operating systems (Windows, iOS and Android) and web
browsers. Customer care is and has always been integral to Plus500,
as such, OTC customers cannot be subject to negative balances. A
free demo account is available on an unlimited basis for OTC
trading platform users and sophisticated risk management tools are
provided free of charge to manage leveraged exposure and stop
losses to help customers protect profits, while limiting capital
losses. Plus500 shares have a premium listing on the Main Market of
the London Stock Exchange (symbol: PLUS) and are a constituent of
the FTSE 250 index. www.plus500.com .
Forward looking statements
This announcement contains statements that are or may be
forward-looking statements. All statements other than statements of
historical facts included in this announcement may be
forward-looking statements, including statements that relate to the
Group's future prospects, developments and strategies. The Company
does not accept any responsibility for the accuracy or completeness
of any information reported by the press or other media, nor the
fairness or appropriateness of any forecasts, views or opinions
express by the press or other media regarding the Group. The
Company makes no representation as to the appropriateness,
accuracy, completeness or reliability of any such information or
publication.
Forward-looking statements are identified by their use of terms
and phrases such as "believe", "targets", "expects", "aim",
"anticipate", "projects", "would", "could", "envisage", "estimate",
"intend", "may", "plan", "will" or the negative of those,
variations or comparable expressions, including references to
assumptions. The forward-looking statements in this announcement
are based on current expectations and are subject to known and
unknown risks and uncertainties that could cause actual results,
performance and achievements to differ materially from any results,
performance or achievements expressed or implied by such
forward-looking statements. Factors that may cause actual results
to differ materially from those expressed or implied by such
forward looking statements include, but are not limited to, those
described in the Risk Management Framework section of the Company's
most recent Annual Report. These forward-looking statements are
based on numerous assumptions regarding the present and future
business strategies of the Group and the environment in which it is
and will operate in the future. All subsequent oral or written
forward-looking statements attributed to the Company or any persons
acting on its behalf are expressly qualified in their entirety by
the cautionary statement above. Each forward-looking statement
speaks only as at the date of this announcement. Except as required
by law, regulatory requirement, the Listing Rules and the
Disclosure Guidance and Transparency Rules, neither the Company nor
any other party intends to update or revise these forward-looking
statements, whether as a result of new information, future events
or otherwise.
[1] All figures for the period ended 30 June 2023 included in
this trading update are unaudited
[2] Market expectations based on compiled analysts' consensus
forecasts, which can be found on the Investor Relations section of
the Company's website
[3] EBITDA - Revenue (trading income and interest income) minus
operating expenses plus depreciation and amortisation
[4] Customer income - Revenue from OTC Customer Income (customer
spreads and overnight charges) and Non-OTC Customer Income
(commissions from the Group's futures and options
on futures operation and from ' Plus500 Invest ' , the Group's
share dealing platform)
[5] Customer Trading Performance - Gains/losses on customers'
trading positions
[6] New Customers - Customers depositing for the first time
[7] Active Customers - Customers who made at least one real
money trade during the period
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END
TSTUPURUMUPWGRB
(END) Dow Jones Newswires
July 10, 2023 02:00 ET (06:00 GMT)
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