TIDMPLUS
RNS Number : 1458J
Plus500 Limited
14 August 2023
14 August 2023
Plus500 Ltd.
("Plus500", the "Company" or together with its subsidiaries the
"Group")
Interim results for the six month period ended 30 June 2023
Further progress and execution against Plus500 ' s strategic
plans
Significant additional $120.0m shareholder returns announced
today, with total shareholder returns of $347.4m so far in FY
2023
Strategic expansion of geographic footprint achieved by
obtaining new regulatory licences
FY 2023 expected to be in line with current market expectations
[1]
Plus500, an established global multi-asset fintech group
operating proprietary technology-based trading platforms, today
announces its interim results for the six month period ended 30
June 2023 [2] .
Robust performance [3] , underpinned by market-leading
technology platforms, diversified revenue streams and continued
ability to attract and retain higher value customers
Financial Highlights:
- Group revenue (comprising trading income of $346.2m and
interest income of $22.3m) , up 15% to $368.5m, compared to H2 2022
(H2 2022: $321.2m, H1 2022: $511.4m)
- Customer Income [4] , a key measure of the Group's underlying
performance, up 2% to $304.3m, compared to H2 2022 (H2 2022:
$299.8m, H1 2022: $339.8m)
- EBITDA [5] up 17% to $174.1m, compared to H2 2022 (H2 2022: $148.5m, H1 2022: $305.3m)
- EBITDA margin up 2% to 47% compared to H2 2022 (H2 2022: 46%, H1 2022: 60%)
- Basic Earnings Per Share ) EPS) up 19% to $1.61, compared to
H2 2022 (H2 2022: $1.35, H1 2022: $2.46)
H1 2023 H2 2022 Change H1 2022 Change
% %
(H1 23 (H1 23
vs. H2 vs. H1
22) 22)
Revenue $368.5m $321.2m 15% $511.4m (28% )
---------- ------- -------- ------- --------
EBITDA $ 1 74.1m $148.5m 17% $305.3m (43% )
---------- ------- -------- ------- --------
EBITDA Margin % 4 7% 46% 2% 60% (22% )
---------- ------- -------- ------- --------
Significant additional $120.0m shareholder returns announced
today:
- $60.0m dividend declared today ($0.7344 per share), comprising
of an interim dividend of $33.7m ($0.4125 per share) and a special
dividend of $26.3m ($0.3219 per share). Both dividends have an
ex-dividend date of 24 August 2023, a record date of 25 August 2023
and a payment date of 9 November 2023
- $60.0m new share buyback programme announced today, comprising
of an interim buyback programme of $33.7m and a special buyback
programme of $26.3m, both to commence following completion of the
existing programme
- Strength of the Group's financial performance, combined with
highly cash generative earnings model and robust balance sheet,
continued to generate compelling value during the period. Total
shareholder returns announced to date in FY 2023 is $347.4m,
including dividends and share buybacks
Operational Highlights:
Plus500 has evolved from a business providing a single OTC-based
product, into the diversified, global multi asset fintech group of
today, offering a wide range of products, services and instruments
across its OTC, share dealing and futures verticals. The Group
caters to a wide customer base in more than 50 countries, all
underpinned by the Group's differentiated technology
capabilities.
- Over 25 million customers registered on the Group's platforms,
providing significant inherent value over time
- Customer cohort record with 55 % of OTC revenue derived from
customers trading with Plus500 for more than three years (H2 2022:
4 1 %, H1 2022: 36%), demonstrating depth of client relationships,
loyalty and enhanced customer engagement
- Average deposit per Active Customer [6] of approximately
$6,450 in H1 2023 (H2 2022: approximately $6,400, H1 2022:
approximately $5,400)
- Strong ARPU [7] at $2,097 during H1 2023 (H2 2022: $1,805, H1
2022: $2,357), driven by the Group's excellent revenue performance
and its ability to attract high value long term customers
H1 2023 H2 2022 Change H1 2022 Change
% %
(H1 23 (H1 23
vs. H2 vs. H1
22) 22)
Active Customers 175,762 177,946 (1%) 216,928 (19%)
--------- ------- -------- ------- --------
New Customers [8] 50,449 49,274 2% 57,275 (12%)
--------- ------- -------- ------- --------
ARPU $2,097 $1,805 16% $2,357 (11%)
--------- ------- -------- ------- --------
AUAC [9] $ 1 ,490 $1,527 (2%) $1,441 3%
--------- ------- -------- ------- --------
Strategic expansion of geographic footprint:
- New regulatory licence obtained in the high growth UAE market
in February 2023, with rapid progress made in developing Plus500's
position in this significant market
- New regulatory licence obtained in the Bahamas in July 2023,
further positioning Plus500 as a global multi asset fintech group
which holds 13 different regulatory licenses. This new regulatory
licence will enable a comprehensive range of trading products
Delivering against strategic objectives - significant progress
made in capitalising on attractive US futures market growth
opportunity:
- Strong progress made in accessing the US futures market,
representing a multi-year growth opportunity for Plus500:
o B2B Institutional opportunity - continued to develop strategic
position as a B2B market infrastructure provider, through the
onboarding of various regulated introducing brokers in the US
futures market, supporting institutional clients with
brokerage-execution and clearing services
o B2C Retail opportunity - recently launched 'Plus500 Futures',
a new B2C intuitive proprietary futures trading platform. This is
in addition to last year's launch of the 'TradeSniper' platform,
which now also offers trading on 'event-based contracts'
Robust and liquid balance sheet, with clear capital allocation
policy supported by strong cash generation and high-quality
operating model:
- Cash balances amounted to $849.0m at the end of H1 2023 (FY
2022: $930.2m, H1 2022: $995.5m)
- No debts or loans since the Company's inception, enabling
consistent reinvestment and facilitating shareholder returns
- Significant capital maintained for required regulatory
purposes, working capital and other factors to enable additional
growth both organically or through bolt-on acquisitions
Plus500's Board of Directors (the "Board") remains confident
about the outlook for Plus500 for FY 202 3 and beyond:
The Board remains confident about the Group's performance for FY
2023, despite quieter market conditions, and anticipates that the
Group's revenue and EBITDA for the current financial year will be
in line with current market expectations.
David Zruia, Chief Executive Officer, commented:
"2023 marks the 10th anniversary of our listing on the London
Stock Exchange and I am immensely proud of the progress we have
delivered over that time in becoming the trusted, differentiated
and diversified multi-asset fintech leader we are today.
In the first half of the year, we executed on our strategy to
produce a strong performance, thanks to the power of Plus500's
market-leading proprietary technology and our consistent ability to
attract and retain higher value customers over the long term. Our
increasingly diversified revenue streams, broadened product
offering, deep customer relationships and the structural growth
drivers in our end markets, mean we are able to deliver both growth
and attractive shareholder returns.
With continued operational and financial momentum being
achieved, we also made substantial progress in delivering against
our strategic priorities, particularly in harnessing the attractive
growth opportunities in the US futures market and obtaining new
regulatory licences in the high growth UAE market and very recently
in the Bahamas.
Our track record of delivering outstanding shareholder returns
puts us amongst the top cohort of companies on a total returns
basis within the FTSE All-Share Index over the past ten years.
We have announced total shareholder returns so far in FY 2023 of
$347.4m, including $257.5m in share buybacks and $89.9m in cash
dividends. This demonstrates the strength of our 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."
Investor/analyst conference call:
Plus500 will host an audiocast for investors and analysts at
9.00 a.m. UK time today, which can be accessed via the following
link :
https://www.investis-live.com/plus500/64c798619b8a600d003fe6c0/plus500-half-year-2023-results
. The audiocast can also be accessed by dialling +44 800 358 1035
and using the following access code: 667703.
The presentation materials and a recording of the audiocast will
be available in due course at
https://investors.plus500.com/Reports/Presentation .
For further details
Plus500 Ltd.
Elad Even-Chen, Chief Financial +972 4 8189503
Officer +44 (0) 7551 654208
Owen Jones, Head of Investor ir@plus500.com
Relations
Dentons Global Advisors
James Melville-Ross +44 (0)20 7664 5095
James Styles plus500@dentonsglobaladvisors.com
Leah Dudley
About Plus500
Plus500 is an established 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, the UAE and the Bahamas 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'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 .
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation ("MAR"). Upon the publication of this
announcement via Regulatory Information Service ("RIS"), this
inside information is now considered to be in the public
domain.
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.
Review of H1 2023 Results
Robust first half performance both financially and
operationally
In H1 2023, Plus500 again delivered a robust performance,
demonstrating the capability and strengths of the Group's
high-quality operating model, its best-in-class leading proprietary
technology and the increasingly diversified nature of the
business.
Even in calmer financial markets, Plus500's ability to attract
and retain customers, driving higher lifetime values, shows the
inherent strengths of the Group's trusted, innovative platforms and
its ability to deliver value for shareholders through the
macroeconomic cycle.
Thanks to its strong balance sheet, including cash balances of
$849.0m at period end, the Group is able to invest in its future
growth, both organically and through a disciplined approach to
strategic bolt on acquisitions. This approach enables Plus500 to
enhance its offering for customers by accessing new markets and
adding new products, services and features. In turn, this healthy
financial position enables to deliver attractive and sustainable
returns to shareholders, through share buybacks and dividends.
Customer deposits in the period reached $1.1 billion (H2 2022:
$1.1 billion, H1 2022: $1.2 billion), emphasising ongoing customer
confidence in Plus500 and the reliability of the Group's trading
platforms. The average deposit per Active Customer also increased
to approximately $6, 45 0 in H1 2023 (H2 2022: approximately
$6,400, H1 2022: approximately $5,400), despite more subdued
trading volumes across global financial markets.
Customer loyalty remained strong, with 85% of H1 2023 OTC
revenue derived from customers trading with Plus500 for more than a
year (H2 2022: 81 %, H1 2022: 82%), 55% for more than three years
(H2 2022: 4 1%, H1 2022: 36%) and 32% for more than five years (H2
2022: 27 %, H1 2022: 15%), again demonstrating the depth of client
relationships, loyalty and enhanced engagement.
Plus500 continually invests in technology to drive innovation
and an enhanced user experience. With many customers taking a
mobile-first approach to trading, the Group saw 8 7 % of its OTC
revenue in H1 2023 generated from customers trading on mobile or
tablet devices (H2 2022: 8 6 %, H1 2022: 85%). In addition, 82% of
OTC customer trades took place on mobile or tablet devices in H1
2023 (H2 2022: 8 3 %, H1 2022: 82%). This highlights Plus500's
industry leadership when it comes to mobile-first services and its
relentless focus on innovation.
Delivering against strategic roadmap
During the period, Plus500 continued to execute against its
long-term strategy, enhancing its position as an established
global, market-leading multi-asset fintech group with distinct core
strengths underpinned by its differentiated technology
platforms.
Further progress was made across a number of important
areas:
Geographic diversification
Further optimisation of Plus500's growing position in the
substantial US futures market
Excellent traction was made during the period in the substantial
US futures market where the Group is targeting a number of major
growth opportunities.
Plus500 has established a strong and growing position in the
futures market in the US, supported by the Group's best-in-class
technology and its robust financial position.
US B2B Opportunity
Plus500 has established a new line of business with the
formation of a B2B vertical and good progress was made in
developing the Group's position as a provider of market
infrastructure services for institutional clients in the US futures
market, supporting them with brokerage-execution and clearing
services. This B2B offering highlights the increasingly diversified
nature of Plus500's model, its market leadership and proven
operational capabilities. It also provides a significant growth
opportunity which has been enhanced by the Group's status as a full
Clearing Firm Member of the CME Group and the Minneapolis Grain
Exchange (MGEX), with other clearing memberships in the
pipeline.
US B2C Opportunity
In addition to the B2B opportunity, Plus500 recently launched
'Plus500 Futures', a new and intuitive trading platform,
specifically designed and tailored for retail traders. This
offering is performing well and as the retail trading community in
the US grows, the Group's ability to apply its innovative and
intuitive technology to this vertical, presents an attractive
opportunity to further expand its diversified revenue streams. The
Group's successful partnership with the Chicago Bulls, the iconic
NBA team, continues to increase brand awareness and visibility.
The launch of 'Plus500 Futures' follows the launch of the
'TradeSniper' trading platform which took place in Q3 2022. Plus500
is also proud to include a new set of offerings within the
'TradeSniper' platform, 'event-based contracts', now available on
iOS and Android applications.
Both 'Plus500 Futures' and 'TradeSniper' uniquely offer
customers a fully holistic solution of onboarding, depositing and
trading in futures, and will continue to be developed by Plus500 to
provide a consistent, best--in--class experience for its customers.
This represents an industry first, with Plus500 having successfully
leveraged its best-in-class technology and expertise to build an
end-to-end, one-stop shop that caters for all the needs of US
retail investors in accessing new trading opportunities in futures.
Looking ahead, these platforms keep the Group in a strong position
to capitalise on the continued growth in retail trading volumes in
the US futures market.
Expanding international licences - significant progress made in
the high growth UAE market and a new licence obtained in the
Bahamas
A new regulatory licence in the high growth UAE market was
obtained during the period, further expanding Plus500's geographic
footprint and highlighting its leading status with a broad and
growing portfolio of international licences. 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.
In July 2023, a new regulatory licence was obtained from the
Securities Commission of the Bahamas.
Plus500 ' s global portfolio of regulatory licences represents a
unique and valuable asset. Considered together, these regulatory
licences serve as an economic moat around the Group ' s business,
heightening also the entry barriers to the industry. Additionally,
the Group's experience and expertise in obtaining regulatory
licences leaves it ideally positioned, as it looks to secure
additional licences in new territories.
Expanding product portfolio
Bringing an ever more comprehensive array of products to
customers
Plus500 is committed to leveraging its expertise to expand its
product offering, introducing innovative new asset classes,
instruments and features and deepening its customer relationships
at the same time. To this end, the Group continued to make good
progress with the launch of innovative new products in the US.
The Group continues to target the expansion of its OTC, share
dealing and futures offering, either organically by establishing a
regulated operation or via acquisitions.
Class-leading technology
Investing behind R&D and technology to maintain and
strengthen competitive advantages
As part of the Group's disciplined capital allocation policy and
in order to position itself strongly for the future, Plus500 is
committed in investing in technology, innovation and cutting-edge
products. During the period, Plus500 maintained this approach to
investment behind its people, products and its R&D centres in
Israel in order to attract, retain and deepen its relationship with
customers, driving growth and value for all stakeholders.
The Board is incredibly proud to have built up a base of over 25
million customers registered on the Group's platforms, a record for
the business. This reflects the Group's focus on delivering a
superior customer service and the trust that customers continue to
place in Plus500's platforms.
With on-going investments in technology and people, particularly
at the Company's R&D centres in Israel, the Group will continue
leveraging this latent base of over 2 5 million customers
registered on its platforms, through retention, activation and
monetisation initiatives, including a premium service offering,
which continues to be rolled out to additional high value
customers.
Ongoing delivery against operational KPIs
Across its key operational metrics, the Group registered a
strong performance in H1 2023, building on the cumulative progress
of recent years and underpinned by a constant focus on delivering a
high-quality customer service.
55% of OTC revenue was derived from customers trading with
Plus500 for more than three years (H2 2022: 4 1 %, H1 2022:
36%).
50,449 New Customers were onboarded during the period (H2 2022:
49,274, H1 2022: 57,275), including 22,248 New Customers onboarded
in Q2 2023 (Q2 2022: 23,535). Again, the enduring strengths of the
Plus500 brand and customer proposition become clear when this
performance is considered against a period of quieter trading
volumes across the wider market.
The number of Active Customers during H1 2023 remained robust at
175,762 (H2 2022: 177,946, H1 2022: 216,928), including 122,833 in
Q2 2023 (Q2 2022: 145,506). Customer Churn [10] in H1 2023 was
29.6% (H2 2022: 40.7%, H1 2022: 29.7%), including 26.6% in Q2 2023
(Q2 2022: 31.0%).
Over a longer time period, the virtues of Plus500's high-quality
earnings model can be evidenced by looking at the cumulative
average revenue from OTC Active Customers who first deposited
during 2018, which was approximately $4,100 as at the end of H1
2023 (H2 2022: approximately $3,900, H1 2022: approximately
$3,700). This demonstrates not only the trust customers place in
the Group's trading platform, but also their long-term value.
Owing to the trust and confidence that customers have in
Plus500's platforms, customer deposits stayed at a high level in H1
2023 of $1.1 billion (H2 2022: $1.1 billion, H1 2022: $1.2
billion), with an average deposit per Active Customer of
approximately $6,450 (H2 2022: approximately $6,400, H1 2022:
approximately $5,400). This provides a testament for the store of
future value for the Group .
Similarly, ARPU lifted to $2,097 in H1 2023 (H2 2022: $1,805, H1
2022: $2,357), including $1,308 in Q2 2023 (Q2 2022: $1,653). This
was driven by the Group's strong revenue performance, combined with
the intuitive nature and reliability of its market-leading
technology platform that drives customer loyalty.
AUAC was $1,490 in H1 2023 (H2 2022: $1,527, H1 2022: $1,441),
including $1,627 in Q2 2023 (Q2 2022: $1,478). Plus500 has a strong
track record in delivering high ROI on marketing spend, which is
expected to continue, thanks to its unique technological
capabilities.
Financial Review - performing strongly
Plus500 delivered a strong financial performance in H1 2023,
generating high returns and further enhancing the Group's cash
position.
Total revenue in H1 2023 was $368. 5 m (H2 2022: $ 321 . 2 m, H1
2022: $511.4m), comprising $346.2m in trading income and $22.3m in
interest income, which is also included in EBITDA for the period,
including revenue of $160.6m in Q2 2023 (Q2 2022: $240.5m). EBITDA
for H1 2023 was $174.1m (H2 2022: $148.5m, H1 2022: $305.3m) with
an EBITDA margin of 47% reported during the period (H2 2022: 46%,
H1 2022: 60%).
Customer Income, a key measure of the Group's underlying
performance, remained consistent during H1 2023 at $304.3m (H2
2022: $299.8m, H1 2022: $339.8m), including $146.5m in Q2 2023 (Q2
2022: $151.8m). Customer Trading Performance [11] was $41.9m during
H1 2023 (H2 2022: $21.4m, H1 2022: $171.6m), including $(8.2m) in
Q2 2023 (Q2 2022: $88.7m). The Group continues to expect that the
contribution from Customer Trading Performance will be broadly
neutral over time. Interest income during the period increased,
owing to wider global interest rate rises, as central banks lifted
base rates.
Net profit in H1 2023 was $146.5m (H2 2022: $126.3m, H1 2022:
$244.1m) and basic earnings per share was up 19% to $1.61, compared
to H2 2022 (H2 2022: $1.35, H1 2022: $2.46).
Plus500 operates a disciplined approach to managing its cost
base, which continues to be positively heavily weighted towards
variable costs. This provides a critical advantage, giving the
Group great flexibility and agility to respond quickly to market
conditions in an uncertain and dynamic economic environment, as has
been seen in recent periods. During H1 2023, 7 0% of the Group's
costs were variable (H2 2022: 67%, H1 2022: 73%), with the Group
maintaining a flexible and well contained cost base.
Total SG&A expenses were $196.2m during H1 2023 (H2 2022:
$174.4m, H1 2022: $207.8m), the main elements of which were
marketing technological investment of $75.2m (H2 2022: $75.3m, H1
2022: $82.5m), commissions to processing companies of $21.3m (H2
2022: $21.2m, H1 2022: $23.7m) and employee benefits and other
related expenses of $53.5m (H2 2022: $38.1m, H1 2022: $42.8m).
Net financial income amounted to $2.6m in H1 2023 (H2 2022: $ 1
4.9m, H1 2022: $9.0m). A substantial proportion of the Group's cash
is held in US dollars in order to provide a natural hedge, thereby
reducing the impact of currency movements on financial
expenses.
Total assets were $940.1 m at the end of the period (H2 2022:
$1,010.0m, H1 2022: $1,072.5m), with equity of $6 90 . 8 m,
representing approximately 73% of the balance sheet, following the
shareholder returns in H1 2023.
Plus500 operates a highly cash generative earnings model, driven
by strong cash conversion and supported by relatively low levels of
capital expenditure as a result of its automation and technological
capabilities.
The Group remains debt-free, with a cash and cash equivalents
balance at the end of H1 2023 of $849.0m (H2 2022: $930.2m, H1
2022: $995.5m).
Plus500's strong cash generation and cash balances again enabled
it to invest in growth, whilst delivering significant levels of
shareholder returns. On 14 February 2023 the Company announced a
share buyback programme totalling $70.0m and separately, on 13 June
2023, the Company repurchased shares for a total cash consideration
of $127.5m.
In H1 2023, the Company executed share buybacks totalling
$214.1m, comprising the outstanding amount of the previous year's
ongoing programme which was $29.4m as at 31 December 2022, the
$70.0m programme announced on 14 February 2023, of which, by 30
June 2023, $12.8m was remaining and will be completed in the second
half of 2023, and the repurchase of shares on 13 June 2023 in the
amount of $127.5m. In addition, $29.9m was declared as final and
special dividends on 14 February 2023 in relation to FY 2022 and
paid to shareholders on 11 July 2023.
The consolidated financial statements are presented in US
dollars, which is the Company's functional and presentation
currency. Foreign currency transactions and balances in currencies
different from the US dollar are translated into the US dollar
using the exchange rates prevailing on the dates of the
transactions or at the balance sheet date.
A proven track record built on responsible leadership, risk
management and customer care
Plus500 is a responsible and trusted market leader. Investing in
regulatory compliance, implementing and maintaining industry
leading governance and controls remains a top priority across the
Group, providing it with a key competitive advantage. The Group
takes a customer-centric approach, for example by providing
negative balance protection to Plus500 ' s customers on a global
basis, meaning that customers cannot lose more than the funds they
have on their account. Plus500 complies with global regulatory
standards and operates within an established regulatory network,
managed by its regulated subsidiaries and co-ordinated
centrally.
Plus500 ' s innovative offering, '+Insights', continues to
receive positive take-up and feedback from customers and
demonstrates Plus500's on-going focus on customer care and
delivering on customer requirements. Furthermore, the Group's
end-to-end proprietary tech stack enables it to react rapidly to
changing regulation, facilitating a robust risk management
approach. The Group's sophisticated risk management tools are
provided free of charge for customers to manage leveraged exposure,
including measures such as stop losses.
A purpose-led Group committed to sustainability
Plus500 is dedicated to operating responsibly and sustainably in
all aspects of its business and believes this approach is both its
duty and an essential part of effective management.
Enabling people to access the financial markets through the
Group's intuitive, secure and user-friendly platforms is of great
importance to Plus500, as is the Board's emphasis on protecting and
supporting customers. The Group is continuing to make strong
progress in providing educational content and information on the
inherent risks related to trading, through prominent risk warnings
and an increasing number of training tools and features on its
platforms, including the launch of a Trading Academy portal in
2022.
Earlier this year, Plus500 also introduced a new ESG trading
suite to its OTC and share dealing platforms. The suite consists of
ESG scores for the Group's wide variety of stocks, as well as
exclusive tradeable ESG Impact Indices, tracking companies that
strive for accountability and aligning with customers' ethical
investing requirements.
Under the leadership of the Company's highly respected Chair,
Professor Jacob A. Frenkel, Plus500 places the utmost importance on
governance, transparent investor engagement, sustainability and
social responsibility. The Board's balance of skills and experience
continues to develop, as well as continuing maintain its high level
of gender diversity, with 50% female Board members.
Growth and capital returns
Plus500's track record of delivering outstanding shareholder
returns puts the Company amongst the top cohort of companies on a
total returns basis within the FTSE All-Share Index, since its IPO
in 2013. In that time, Plus500 has generated approximately $3.0
billion of cash from operations and returned approximately $1.9
billion to shareholders through share buybacks and dividends. In H1
2023, this trend continued, with returns totalling $347.4m, of
which $120.0m in dividends and buybacks was announced today,
$127.5m through the repurchase of shares executed on 13 June 2023
and $99.9m in dividends and buybacks as announced on 14 February
2023.
Shareholder returns related to H1 2023
The Board today announces a total return of $120.0m in relation
to H1 2023, including a new share buyback of $60.0m, comprising of
an interim share buyback programme of $33.7m and a special share
buyback programme of $26.3m. In addition, a total dividend was
announced today of $60.0m [12] , ($0.7344 per share), comprising of
an interim dividend of $33.7m ($0.4125 per share) and a special
dividend of $26.3m ($0.3219 per share). Both dividends have an
ex-dividend date of 24 August 2023, a record date of 25 August 2023
and a payment date of 9 November 2023.
Demonstrating the Board's confidence in the Company's prospects,
its robust financial position and ability to deliver significant
future shareholder returns, the Board has resolved to conduct a new
share buyback programme to acquire up to $60.0m of the Company's
shares, which will commence following the completion of the current
share buyback programmes.
During H1 2023, the Company executed share buyback programmes,
with 11,485,961 ordinary shares purchased during the period,
amounting to a total of $214.1m, at an average share price of
GBP14.93. The remaining share buyback programmes announced on 14
February 2023, as of 30 June 2023, amounted to $12.8m and will
continue to run during the second half of 2023, in addition to the
new share buyback programme of $60.0m announced today.
At 30 June 2023, the Company held in treasury a total of
32,582,466 ordinary shares (which are not entitled to dividends and
have no voting rights at the Company's general meetings), which
were purchased following the commencement of Plus500's initial
share buyback programmes in 2017, representing 28.4% of the
Company's issued share capital at such time (the total treasury
shares held by the Company comprise the shares purchased less
issued treasury shares).
FY 2023 outlook unchanged, well placed to seize the
opportunities ahead
The Board remains confident about the Group's performance for FY
2023 and anticipates that Plus500's revenue and EBITDA for the
current financial year will be in line with current market
expectations. Plus500's market leading position, the increasingly
diversified nature of its revenue streams and the strength of its
customer relationships leaves the Group ideally positioned to
continue scaling, while creating sustainable earnings growth and
value for all stakeholders.
Plus500 LTD.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX-MONTH PERIODED 30 JUNE 2023 (UNAUDITED)
Six months Year ended
ended 30 June 31 December
----------------- -------------
2023 2022 2022
-------- ------- -------------
(Unaudited) (Audited)
----------------- -------------
Note U.S. dollars in millions
----- --------------------------------
Trading income 4 346.2 511.4 832.6
Interest income 3 22.3 - -
-------- ------- -------------
TOTAL REVENUE 368.5 511.4 832.6
14 8 .
Selling and marketing expenses 5 3 169.5 302.1
Administrative and general expenses 6 4 7 . 9 38.3 80.1
-------- ------- -------------
OPERATING PROFIT 172.3 303.6 450.4
Financial income 6.6 17.1 41.3
Financial expenses 4.0 8.1 17.4
-------- ------- -------------
FINANCIAL INCOME , NET 2.6 9.0 23.9
-------- ------- -------------
PROFIT BEFORE INCOME TAX 174.9 312.6 474.3
INCOME TAX EXPENSE 8 28. 4 68.5 103.9
-------- ------- -------------
PROFIT AND COMPREHENSIVE INCOME
24 4 .
FOR THE PERIOD 146.5 1 370.4
======== ======= =============
Basic earnings per share ( In
U . S . dollars) 9 1.61 2.46 3.81
======== ======= =============
Diluted earnings per share (
In U . S . dollars) 9 1.58 2.43 3.77
======== ======= =============
The accompanying notes are an integral part of the condensed
consolidated interim financial information.
Plus500 LTD.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 JUNE 2023 (UNAUDITED)
As of As of
30 June 31 December
------------------- -------------
2023 2022 2022
-------- --------- -------------
(Unaudited) (Audited)
------------------- -------------
Note U.S. dollars in millions
----- ----------------------------------
ASSETS
Non-current assets
Property, plant and equipment 3.7 2.5 2.6
Goodwill and other intangible
assets, net 38.5 39.9 38.7
Right of use assets 1 3 . 4 5.0 5.6
Long term other receivables 5. 0 4.7 5.8
-------- --------- -------------
Total non-current assets 6 0 . 6 52.1 52.7
-------- --------- -------------
Current assets
Income tax receivable 0.7 - 0.2
Other receivables and others 29. 8 24.9 26.9
Cash and cash equivalents 849. 0 995.5 930.2
-------- --------- -------------
1, 020 .
Total current assets 879. 5 4 957.3
-------- --------- -------------
1, 072 .
TOTAL ASSETS 940. 1 5 1,010.0
======== ========= =============
LIABILITIES
Non-current liabilities
Lease liabilities (net of current
maturities) 10. 7 3.0 3.6
Share based compensation 0. 5 1.0 -
Deferred tax liability 6.9 7.9 6.9
-------- --------- -------------
Total non-current liabilities 1 8 . 1 11.9 10.5
-------- --------- -------------
Current liabilities
Dividend 10 29.9 59.9 -
Share based compensation 2.8 7.0 6.3
12 5 .
Income tax payable 0 114.6 116.4
Other payables 5 6 . 5 59.1 72.2
Service suppliers 1 3 . 3 12.7 11.7
Current maturities of lease liabilities 2. 8 2.0 2.0
Trade payables - due to clients 12 0.9 7.0 10.4
-------- --------- -------------
23 1 .
Total current liabilities 2 262.3 219.0
-------- --------- -------------
2 49 .
TOTAL LIABILITIES 3 274.2 229.5
-------- --------- -------------
EQUITY
Ordinary shares 0.3 0.3 0.3
Share premium 22.2 22.2 22.2
Cost of Company's shares held ( 258.9
by the Company 11 (554.9) ) (341.1)
1,22 3
Retained earnings . 2 1,034.7 1,099.1
-------- --------- -------------
6 90 .
Total equity 8 798.3 780.5
-------- --------- -------------
TOTAL LIABILITIES AND EQUITY 940. 1 1,072.5 1,010.0
======== ========= =============
David Zruia Elad Even-Chen Prof. Jacob A. Frenkel
Chief Executive Officer Group Chief Financial Non-Executive Director
Officer and Chairman
Date of approval of the condensed consolidated interim financial
information by the Company ' s Board of Directors: 1 4 August 202
3
Registered Company number (Israel): 514142140
The accompanying notes are an integral part of the condensed
consolidated interim financial information.
Plus500 LTD.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX-MONTH PERIOD EN DED 30 JUNE 2023 (UNAUDITED)
Cost of Company's
shares held
Ordinary Share by Retained
shares premium the Company earnings Total
---------- --------- ------------------- ---------- --------
U.S. dollars in millions
------------------------------------------------------------------
BALANCE AT 1 JANUARY 2023 (audited) 0.3 22.2 (341.1) 1,099.1 780.5
CHANGES DURING THE SIX MONTHS
PERIODED 30 JUNE 2023 (unaudited):
Profit and comprehensive income
for the period - - - 146.5 146.5
Share based compensation - - - 7.8 7.8
TRANSACTION WITH SHAREHOLDERS:
Dividends - - - (29.9) (29.9)
Issue of treasury shares to settle
equity share based compensations - - 0. 3 (0. 3 ) -
(214. 1
Acquisition of treasury shares - - (214. 1 ) - )
---------- --------- ------------------- ---------- --------
(55 4 . 9 1,22 3
BALANCE AT 30 JUNE 2023 (unaudited) 0.3 22.2 ) . 2 690 . 8
========== ========= =================== ========== ========
BALANCE AT 1 JANUARY 2022 (audited) 0.3 22.2 (207.5) 846.3 661.3
CHANGES DURING THE SIX MONTHS
PERIODED 30 JUNE 2022 (unaudited):
Profit and comprehensive income
for the period - - - 244.1 244.1
Share based compensation - - - 4.5 4.5
TRANSACTION WITH SHAREHOLDERS:
( 59.9
Dividends - - - ) (59.9)
Issue of treasury shares to settle
equity share based compensations - - 0.3 (0. 3 ) -
(5 1 . 7
Acquisition of treasury shares - - (5 1 . 7 ) - )
---------- --------- ------------------- ---------- --------
BALANCE AT 30 JUNE 2022 (unaudited) 0.3 22.2 (258.9) 1,034.7 798.3
========== ========= =================== ========== ========
BALANCE AT 1 JANUARY 2022 (audited) 0.3 22.2 (207.5) 846.3 661.3
CHANGES DURING THE YEARED 31 DECEMBER 2022 (audited):
Profit and comprehensive income
for the year - - - 370.4 370.4
Share based compensation - - - 7.5 7.5
TRANSACTION WITH SHAREHOLDERS:
Dividends - - - (119.9) (119.9)
Issue of treasury shares to settle
equity share based compensations - - 5.2 (5.2) -
Acquisition of treasury shares - - (138.8) - (138.8)
---------- --------- ------------------- ---------- --------
BALANCE AT 31 DECEMBER 2022
(audited) 0.3 22.2 (341.1) 1,099.1 780.5
========== ========= =================== ========== ========
The accompanying notes are an integral part of the condensed
consolidated interim financial information.
Plus500 LTD.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX-MONTH PERIODED 30 JUNE 2023 (UNAUDITED)
Six months ended Year ended
30 June 31 December
------------------- ------------
2023 2022 2022
--------- -------- ------------
(Unaudited) (Audited)
------------------- ------------
Note U.S. dollars in millions
----- ---------------------------------
OPERATING ACTIVITIES:
Cash generated from operations 13 130.4 344.9 506.8
( 18.4
Income tax paid, net ) (32.9) (66.2)
Interest received, net 22.3 2.2 13.5
--------- -------- ------------
Net cash flows provided by operating
activities 134.3 314.2 454.1
--------- -------- ------------
INVESTING ACTIVITIES:
Acquisition of subsidiaries, net of
cash acquired - (4.6) (4.6)
Purchase of property, plant and equipment ( 1.6 ) (0.3) (0.8)
--------- -------- ------------
Net cash flows used in investing activities ( 1.6 ) ( 4.9 ) (5.4)
--------- -------- ------------
FINANCING ACTIVITIES:
Dividend paid to equity holders of
the Company - - (119.9)
Payment of principal in respect of
leases liabilities (1. 3 ) (1.1) (2.3)
Acquisition of treasury shares 11 (214.1) (51.7) (138.8)
--------- -------- ------------
( 215.4
Net cash flows used in financing activities ) (52.8) (261.0)
--------- -------- ------------
INCREASE (DECREASE) IN CASH AND CASH (82. 7 25 6 .
EQUIVALENTS ) 5 187.7
BALANCE OF CASH AND CASH EQUIVALENTS
AT
BEGINNING OF THE PERIOD 930.2 749.5 749.5
Gains (losses) from effects of exchange
rate changes on
( 10.5
cash and cash equivalents 1. 5 ) (7.0)
--------- -------- ------------
BALANCE OF CASH AND CASH EQUIVALENTS
AT OF THE PERIOD 849. 0 995.5 930.2
========= ======== ============
The accompanying notes are an integral part of the condensed
consolidated interim financial information.
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
INFORMATION
NOTE 1 - GENERAL INFORMATION
Information on activities
Plus500 Ltd. (the "Company" and together with its subsidiaries,
the "Group") 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 Company has developed and operates an online trading platform
within the OTC sector, enabling its international customer base of
individual customers to trade OTC products on over 2,500 underlying
financial instruments internationally.
The Group's offering is available internationally with main
market presence in the UK, the European Economic Area ("EEA"),
Australia, the US, and the Middle East and has customers located in
more than 50 countries worldwide. The Group operates through
operating subsidiaries regulated by the Financial Conduct Authority
("FCA") in the UK, the Australian Securities and Investments
Commission ("ASIC") in Australia, the Cyprus Securities and
Exchange Commission ("CySEC") in Cyprus, the Israel Securities
Authority ("ISA") in Israel, the Financial Markets Authority
("FMA") in New Zealand, the Financial Sector Conduct Authority
("FSCA") in South Africa, the Monetary Authority of Singapore
("MAS") in Singapore, the Financial Services Authority ("FSA") in
the Seychelles, the Commodities Futures Trading Commission ("CFTC")
in the US, the Estonian Financial Supervision Authority ("EFSA") in
Estonia, the Financial Services Agency ("FSA") in Japan, the Dubai
Financial Services Authority ("DFSA") in the UAE and the Securities
Commission of The Bahamas ("SCB") in the Bahamas.
The Company also has a subsidiary in Bulgaria which provides
operational services to the Group.
The Company has been listed since 2013 on the London Stock
Exchange. Since 2018, Plus500 Ltd . has been a FTSE 250 listed
entity, following the Company's shares being admitted to the
premium listing segment of the Official List and to trading on the
London Stock Exchange Main Market for listed securities.
The Group operates in three operating sectors: OTC trading;
share dealing; and futures and options on futures. The Group
presents its operation as one operating segment.
The address of the Company's principal offices is Building 25,
Matam, Haifa 3190500, Israel.
NOTE 2 - BASIS OF PREPARATION
Basis of accounting and accounting policies
These condensed consolidated interim financial information for
the six month period ended 30 June 2023 have been prepared in
accordance with IAS 34 - 'Interim financial reporting' as issued by
the International Accounting Standards Board. The condensed
consolidated interim financial information should be read in
conjunction with the annual financial statements for the year ended
31 December 2022, which have been prepared in accordance with IFRS.
This condensed consolidated interim financial information is
reviewed and not audited.
Going concern
The Group has considerable financial resources, a broad range of
financial instruments and a substantial active customer base which
is geographically diversified. As a consequence, the Company's
Board of Directors (the "Board") believes that the Group is well
placed to manage its business risks in the context of the current
economic outlook. Accordingly, the Board has a reasonable
expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future. The Board
therefore continues to adopt the going concern basis in preparing
this condensed consolidated interim financial information.
NOTE 3 - ACCOUNTING POLICIES
Significant accounting policies and computation methods used in
preparing the condensed consolidated interim financial information
are consistent with those used in preparing the 2022 annual
financial statements, except for the following:
Income tax in interim periods is recognised based on
management's best estimate of the annual income tax rate expected
(see note 8).
During the six month period ended 30 June 2023, management has
updated the accounting policy regarding the presentation of
interest income. Accordingly, interest income is accrued based on
the effective interest rate method, and is presented as part of the
Group's total revenue in the statement of comprehensive income.
Previously, interest income was presented as part of financial
income in the statement of comprehensive income.
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
INFORMATION (continued)
NOTE 3 - ACCOUNTING POLICIES (continued)
The voluntary change in accounting policy is intended to provide
shareholders with better expression of its business activities and
to enhance the comparability of its financial statements to its
peers. The effect of this change on the consolidated financial
statements in previous periods is not material for the consolidated
financial statements as a whole.
NOTE 4 - TRADING INCOME
The trading income attributed to geographical areas according to
the location of the customer is as follows:
Six months Year ended
ended 30 June 31 December
---------------- ------------
2023 2022 2022
------- ------- ------------
(Unaudited) (Audited)
---------------- ------------
U.S. dollars in millions
------------------------------
European Economic Area (EEA) 145.6 234.0 372.9
United Kingdom 29.1 66.8 100.4
Australia 24.4 40.5 67.2
Rest of the World 147.1 170.1 292.1
------- ------- ------------
346.2 511.4 832.6
======= ======= ============
NOTE 5 - SELLING AND MARKETING EXPENSES
Six months Year ended
ended 30 June 31 December
------------------ -------------
2023 2022 2022
--------- ------- -------------
(Unaudited) (Audited)
------------------ -------------
U.S. dollars in millions
---------------------------------
Advertising and technology costs 69.5 75.5 144.3
Commissions to processing companies 21.3 23.7 44.9
Server and data feeds commissions 8. 5 8.4 14.6
Payroll and related expenses 13.0 11.7 24.2
Variable bonuses 6.9 9.8 8.6
Share based compensation 4.8 2.0 6.1
Commissions to media buying 5.7 7.0 13.5
Other 1 8 . 6 31.4 45.9
--------- ------- -------------
14 8 .
3 169.5 302.1
========= ======= =============
NOTE 6 - ADMINISTRATIVE AND GENERAL EXPENSES
Six months Year ended
ended 30 June 31 December
----------------- -------------
2023 2022 2022
--------- ------ -------------
(Unaudited) (Audited)
----------------- -------------
U.S. dollars in millions
--------------------------------
Payroll and related expenses 10.3 8.0 16.3
Variable b onuses 8.4 6.1 10.4
Share based compensation 1 0 . 1 5.2 15.3
Professional and regulatory fees 8.7 12.6 23.0
Depreciation and amortisation 1.8 1.7 3.4
Other 8.6 4.7 11.7
--------- ------ -------------
4 7 . 9 38.3 80.1
========= ====== =============
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
INFORMATION ( continued )
NOTE 7 - OPERATING EXPENSES
The presentation below reflects the breakdown of operating
expenses by nature of expense:
Six months Year ended
ended 30 June 31 December
------------------ -------------
2023 2022 2022
--------- ------- -------------
(Unaudited) (Audited)
------------------ -------------
U.S. dollars in millions
---------------------------------
Advertising, marketing and commissions
to media buying 55.0 64.3 122.0
Employee benefits and other related
expenses 5 3 . 5 42.8 80.9
IT and technology costs 28.7 2 6.6 50.4
Commissions to processing companies 21.3 23.7 44.9
Professional and regulatory fees 8.7 12. 6 23.0
Depreciation and amortisation 1.8 1. 7 3.4
Other 27. 2 36.1 57.6
--------- ------- -------------
196.2 207.8 382.2
========= ======= =============
In the year ended 31 December 2022 and the six month period s
ended 30 June 2023 and 30 June 2022, IT and technology costs
together with additional allocated other technological related
costs, were $74.4 million, $ 39 . 8 million and $33.3 million,
respectively.
NOTE 8 - INCOME TAX EXPENSES
Law for the Encouragement of Capital Investments, 5719-1959
The Law for the Encouragement of Capital Investments, 5719-1959,
generally referred to as the "Investment Law", provides certain
incentives for capital investments in production facilities (or
other eligible assets) by "Industrial Enterprises" (as defined
under the Investment Law).
New Tax benefits under the 2017 Amendment that became effective
on 1 January 2017 (the "2017
Amendment")
The 2017 Amendment was enacted as part of the Economic
Efficiency Law that was published on 29 December 2016, and is
effective as of 1 January 2017. The 2017 Amendment provides new tax
benefits, as described below, and is in addition to the other
existing tax beneficial programmes under the Investment Law.
The 2017 Amendment provides that a technology company satisfying
certain conditions will qualify as a Preferred Technological
Enterprise ("PTE") and will thereby enjoy a reduced corporate tax
rate of 12% on income that qualifies as Preferred Technology
Income, as defined in the Investment Law.
Dividends distributed by a PTE, paid out of Preferred Technology
Income, are generally subject to withholding tax at source at the
rate of 20% or such lower rate as may be provided in an applicable
tax treaty.
a. Company taxation in Israel
The full corporate tax rate in Israel for the years 202 3 and
202 2 is 23%.
Under the 2017 Amendment, provided the conditions stipulated
therein are met, technological income derived by Preferred
Companies from "Preferred Technological Enterprise" (as defined in
the 2017 Amendment), would be subject to reduced corporate tax
rates of 12%.
A Preferred Company distributing dividends from technological
income derived from its PTE would generally subject the recipient
to a 20% withholding tax (or lower, if so provided under an
applicable tax treaty).
At the beginning of July 2020, the Company received an approval
from the Israeli Innovation Authority ("IIA") that together with
the tax ruling received from the ITA in May 2019, recognises the
Company as a PTE for the years 2017, 2018 and 2019. Accordingly,
the applicable tax rate for the preferred technological income of a
PTE for these years was 12%. The Company is also considered as PTE
for the years 2020 and 2021. As a result, the Company's corporate
tax rate for the years 2021 and 2020 was 12%, subject to the
Company complying with the conditions of the Law for the
Encouragement of Capital Investments.
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
INFORMATION ( continued )
NOTE 8 - INCOME TAX EXPENSES (continued)
In January 2022, the Company's status as a PTE, as accredited by
the ITA under the tax regime in Israel, has been extended for the
years 2022, 2023, 2024, 2025 and 2026, subject to the Company
complying with the conditions of the Law for the Encouragement of
Capital Investments. Consequently, the Company's corporate tax rate
for each of these years will be reduced from 23% to 12% and the
withholding tax rate applicable for dividends will be reduced from
25% to 20%.
b. Tax assessments
The Company has final tax assessments up to the year 2019.
The assessments of amounts of current and deferred taxes require
the Group's management to take into consideration uncertainties
that its tax position will be accepted and of incurring any
additional tax expenses. This assessment is based on estimates and
assumptions based on interpretation of tax laws and regulations,
and the Group's past experience. It is possible that new
information will become known in future periods that will cause the
final tax outcome to be different from the amounts that were
initially recorded, such differences will impact the current and
deferred income tax assets and liabilities in the period in which
such determination is made.
c. Taxes on income included in the consolidated income statement for the reported periods
Six months Year ended
ended 30 June 31 December
----------------- -------------
2023 2022 2022
-------- ------- -------------
(Unaudited) (Audited)
----------------- -------------
U.S. dollars in millions
--------------------------------
Current taxes:
Current taxes in respect of current
period's profit 27.6 66.9 103.5
Tax income in respect of previous
years - 0.5 0.5
-------- ------- -------------
27.6 67.4 104.0
Deferred income taxes:
Change of deferred tax assets 0.8 1.1 (0.1)
-------- ------- -------------
Taxes on income expenses 28. 4 68.5 103.9
======== ======= =============
NOTE 9 - EARNINGS PER SHARE
Earnings per share is calculated by dividing the profit
attributable to equity holders of the Company by the weighted
average number of ordinary shares in issue during the period.
Six months Year ended
ended 30 June 31 December
------------------------- -------------
2023 2022 2022
----------- ------------ -------------
(Unaudited) (Audited)
------------------------- -------------
Profit attributable to equity
holders of the
Company (U.S . dollars in millions) 14 6 . 5 244.1 370.4
=========== ============ =============
Weighted average number of ordinary
shares in
issue*:
Basic 90,906,059 99,265,601 97,311,485
Dilutive effect of equity share
based compensation 1,738,170 1,204,619 943,047
=========== ============ =============
Diluted 92,644,229 100,470,220 98,254,532
=========== ============ =============
Basic earnings per share (In
U.S. dollars) 1.61 2.4 6 3.81
=========== ============ =============
Diluted earnings per share (In
U.S. dollars) 1.58 2. 43 3.77
=========== ============ =============
*After weighting the effect of Company's share buyback
programmes (see note 11) .
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
INFORMATION ( continued )
NOTE 10 - DIVIDS
The amounts of dividends and the amounts of dividends per share
for the years 2023 and 2022 declared and distributed by the Board
are as follows:
Amount of dividend Date of payment
Date of declaration Amount of dividend per share (US to
(US $ in millions)* $) Shareholders
----------------------- --------------------- ------------------- -----------------
15 February 2022 59.9 0.5995 11 July 2022
17 August 2022 60.0 0.6238 11 November 2022
14 February 2023 29.9 0.3234 11 July 2023
On 14 August 2023, the Company declared an interim dividend and
a special dividend in the amounts of $33.7 million and $26.3
million, respectively (see note 15).
*Between the dividend announcement date and the record date of
the dividend, the number of issued and outstanding ordinary shares
of the Company decreased as a result of the repurchase by the
Company of its ordinary shares during such period and the
classification of such repurchased ordinary shares as treasury
shares that are not entitled to dividends. However, this did not
affect the dividend per share as announced on the dividend
announcement date.
NOTE 11 - COST OF COMPANY'S SHARES HELD BY THE COMPANY
The Board approves share buyback programmes. The share buyback
programmes are funded from the Company's net cash balances.
Aggregate
Number of ordinary purchase amount Average price
Period shares purchased (US $ in millions) of shares
purchased
------------------------ --------------------- -------------------- ----------------
Year ended 31 December
2022 6,943,359 138.8 GBP16.27
Six months ended 30
June 202 2 2,670,651 51.7 GBP14.98
Six months ended 30
June 2023 11,485,961 214.1 GBP14.93
During the six month periods ended 30 June 2023 and 2022, the
Company issued a total of 16,143 and 14,165, respectively, of its
treasury shares.
NOTE 12 - TRADE PAYABLES - DUE TO CLIENTS
As of 31
As of 30 June December
-------------------- ----------
2023 2022 2022
--------- --------- ----------
(Unaudited) (Audited)
-------------------- ----------
U.S. dollars in millions
--------------------------------
Customers' deposits, net* 279.9 274.6 282.8
Segregated client funds (279.0) (267.6) (272.4)
--------- --------- ----------
0.9 7.0 10.4
========= ========= ==========
*Customers' deposits, net are comprised
of the following:
Customers' deposits 419. 8 385.1 411.5
Less - financial derivative open positions:
(15 9 .
Gross amount of assets 0 ) (135.9) (139.0)
Gross amount of liabilities 19. 1 25.4 10.3
--------- --------- ----------
279.9 274.6 282.8
========= ========= ==========
* The total amount of 'Trade payables - due to clients' includes
bonuses to clients.
Plus500 LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
INFORMATION ( continued )
NOTE 13 - CASH GENERATED FROM OPERATIONS
Six months Year ended
ended 30 June 31 December
----------------- -------------
2023 2022 2022
--------- ------ -------------
(Unaudited) (Audited)
----------------- -------------
U.S. dollars in millions
--------------------------------
Cash generated from operating activities
1 46 .
Net income for the period 5 244.1 370.4
--------- ------ -------------
Adjustments required to reflect the
cash flows from
operating activities:
Depreciation and amortisation 0. 7 0.8 1.4
Amortisation of right of use assets 1. 1 0.9 2.0
Liability for share based compensation 1.0 2.7 11.9
( 10.8
Settlement of share based compensation ) (7.0) (7.3)
Equity share based compensation 7.8 4.5 7.5
Taxes on income 2 8 . 4 68.5 103.9
Interest expenses in respect of leases 0.1 0.1 0.1
Exchange differences in respect of
leases 0.2 (0.5) (0.4)
(22. 3
Interest income ) (2.2) (13.5)
Foreign exchange losses (gains) on
operating activities (2.6) 0.7 (4.5)
--------- ------ -------------
3 . 6 68.5 101.1
--------- ------ -------------
Operating changes in working capital:
Decrease (increase) in other receivables
and others (2.9) 7.1 5.2
Increase (decrease) in trade payables
due to clients (9.5) 6.4 9.8
Increase (decrease) in other payables (8.9) 21.6 24.1
Increase (decrease) in service suppliers 1 .6 (2.8) (3.8)
--------- ------ -------------
( 19 .
7 ) 32.3 35.3
--------- ------ -------------
Cash generated from operations 130.4 344.9 506.8
========= ====== =============
Non-cash transactions
On 14 February 2023, the Board declared a dividend in an amount
of $29.9 million ($0.3234 per share). The dividend was paid to
shareholders on 11 July 2023 (see note 10). In addition, $ 8 . 9
million in right of use asset s and lease liabilities were
recognised during the six month period ended on 30 June 2023.
NOTE 14 - FINANCIAL RISK MANAGEMENT
Financial risks arising from financial instruments are analysed
into market, credit, concentration and liquidity risks. The
condensed consolidated interim financial information does not
include all financial risk management information and disclosures
required in the annual financial statements. Details of how these
risks are managed are discussed in the financial risk management
note of the 2022 annual financial statements .
Further to the mentioned above, there has not been a significant
change in the Group's financial risk management processes or
policies since year end 2022.
NOTE 15 - SUBSEQUENT EVENTS
In July 2023, the Group obtained a regulatory licence in the
Bahamas, granted by the Securities Commission of The Bahamas
(SCB).
On 14 August 2023 the Board declared an interim dividend in an
amount of $33.7 million ($0.4125 per share). The dividend record
date is 25 August 2023 and it will be paid to the shareholders on 9
November 2023.
On 14 August 2023 the Board declared a special dividend in an
amount of $26.3 million ($0.3219 per share). The dividend record
date is 25 August 2023 and it will be paid to the shareholders on 9
November 2023.
On 14 August 2023, the Board approved a new programme to buy
back an amount of up to $60.0 million of the Company's ordinary
shares, comprised of an interim share buyback programme in the
amount of $33.7 million and a special share buyback programme in
the amount of $26.3 million.
[1] Market expectations based on compiled analysts' consensus
forecasts, which can be found on the Investor Relations section of
the Company's website. As at 7 August 2023, consensus forecasts for
FY 2023 revenue and EBITDA are $614.2m and $2 74 . 9 m,
respectively
[2] All figures for the six month period ended 30 June 2023, for
the six month period ended 31 December 2022 and for the six month
period ended 30 June 2022, included in this announcement are
unaudited
[3] H2 2022 provides a more meaningful comparator versus H1
2023, given the significantly heightened volatility experienced in
H1 2022 across financial markets
[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] EBITDA - Revenue (trading income and interest income) minus
operating expenses plus depreciation and amortisation
[6] Active Customers - Customers who made at least one real
money trade during the period
[7] ARPU - Average Revenue Per User
[8] New Customers - Customers depositing for the first time
[9] AUAC - Average User Acquisition Cost
[10] Customer Churn: [(Active Customers (T) + New Customers
(T+1)) - Active Customers (T+1)]/ Active Customers (T)
[11] Customer Trading Performance - gains/losses on customers' trading positions
[12] The total estimated dividend payout of $ 60. 0 m is based
on 8 1,695,875 o rdinary shares issued as at 1 3 August 2023. The
total dividend payout will be subject to the ordinary shares t hat
will be repurchased between 14 August 2023 and the dividend record
date of 25 August 2023, which will be held in treasury and
therefore will not be entitled to a dividend and the actual
aggregate dividend payout will be reduced accordingly.
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END
IR NKNBQCBKDAFD
(END) Dow Jones Newswires
August 14, 2023 02:00 ET (06:00 GMT)
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