TIDMPLUS
RNS Number : 4065C
Plus500 Limited
11 October 2022
11 October 2022
Plus500 Ltd.
("Plus500", the "Company" or together with its subsidiaries the
"Group")
Q3 2022 Trading Update
Further outstanding financial and operational performance, with
on-going strategic progress delivered
Plus500, a global multi-asset fintech group operating
proprietary technology-based trading platforms, issues the
following trading update for the nine months ended 30 September
2022[1].
Financial Highlights (unaudited):
YTD[2] YTD 2021 Change
2022 %
$7 05
Revenue . 9 m $557.6m 27%
---------- -------- ------
EBITDA $4 0 7.1m $316.2m 29%
---------- -------- ------
EBITDA Margin % 58% 57% 2%
---------- -------- ------
Q3 2022 Q3 2021 Change
%
$19 4
Revenue . 5 m $211.4m (8%)
-------- ------- ------
$10 1
EBITDA .8m $128.6m (21%)
-------- ------- ------
EBITDA Margin % 52% 61% (15%)
-------- ------- ------
Operational Highlights (unaudited):
YTD 2022 YTD 2021 Change
%
$2,81
ARPU ([3]) 7 $1,517 86%
--------- -------- ------
$1,48
AUAC ([4]) 7 $750 9 8 %
--------- -------- ------
New Customers [5] 81, 022 163,149 (50%)
--------- -------- ------
Active Customers [6] 250,553 367,573 (32%)
--------- -------- ------
Q3 2022 Q3 2021 Change
%
$ 1 ,
ARPU 44 5 $1,271 14%
--------- ------- ------
AUAC $1,5 98 $1,416 1 3 %
--------- ------- ------
New Customers 23 , 747 26,169 ( 9 %)
--------- ------- ------
Active Customers 134,657 166,310 (19%)
--------- ------- ------
Key Headlines :
-- Outstanding results achieved during the first nine months of FY 2022:
o S trong levels of Customer Income ([7]) helped to drive an
excellent revenue performance
o The Group's lean and flexible cost base supported a robust
EBITDA performance
o Plus500 remains in an extremely strong financial position,
with cash balances above $9 50 m as at 30 September 2022
-- Continued success in attracting and retaining high value, long-term customers:
o Driven by the Group's on-going focus on customer engagement
and further investment in customer retention, activation
initiatives and product development
o Customer confidence in Plus500 evidenced by consistently high
levels of customer deposits
-- Further progress made in entering new markets and launching
new products, in line with the Group's strategic roadmap :
o Excellent traction achieved in the US Futures market:
-- To activate the significant retail trading opportunity,
TradeSniper, Plus500's intuitive new proprietary Futures trading
platform tailored for US retail market, launched on iOS and
Android
-- Strategic position further developed as a market
infrastructure provider, supporting institutional clients with
brokerage-execution and clearing services
-- Additional investment in building Plus500's brand globally,
including the new sponsorship partnership signed with the NBA
Chicago Bulls
o Integration plans for the acquisition in Japan, which took
place earlier in 2022 to enable the Group ' s offering within the
Japanese market, are progressing well and remain on track
-- The Board remains confident about the Group's prospects in FY 2022 and beyond:
o The Board anticipates that revenue and EBITDA for FY 2022 will
be ahead of current market expectations [8]
o Plus500 expects to produce sustainable growth over the medium
to long term
Trading overview
Plus500 achieved continued outstanding financial and operational
performance during the first nine months of FY 2022, driven by the
power of the Group's market-leading proprietary technology and its
consistent ability to attract and retain higher value customers
over the long term, across a diverse range of geographic markets,
products and financial instruments.
As a result, revenue during the first nine months of FY 2022 was
$705. 9 m (YTD 2021: $557.6m) including $194.5m in Q3 2022 (Q3
2021: $211.4m).
Customer Income, a key measure of the Group's underlying
performance, remained robust at $489.2m in the first nine months of
FY 2022 (YTD 2021: $536.1m) including $149.4m in Q3 2022 (Q3 2021:
$156.9m). This consistent performance highlights the Group's
on-going focus on customer engagement and its continued investment
in product development.
Customer Trading Performance[9] in the first nine months of FY
2022 stood at $216.7m (YTD 2021: $21.5m) including $45.1m in Q3
2022 (Q3 2021: $54.5m). The Company continues to expect that the
contribution from Customer Trading Performance will be broadly
neutral over time.
Despite continued significant investments by the Group in
various marketing initiatives during the period, EBITDA in the
first nine months of FY 2022 was $407.1m, with EBITDA margin of 58%
(YTD 2021: $316.2m and 57%, respectively). This included EBITDA of
$101.8m and EBITDA margin of 52% in Q3 2022 (Q3 2021: $128.6m and
61%, respectively).
The levels of customer engagement and activity on Plus500's
trading platforms remained strong, supported by the Group's
on-going investments in its proprietary technological solutions for
customer retention, monetisation and activation.
As evidence of the success of these initiatives and the Group's
on-going customer-centric approach, the longevity of customer usage
on Plus500's trading platforms remained strong, with the Group also
on-boarding 81, 022 New Customers during the first nine months of
FY 2022 (YTD 2021: 163,149), including 2 3 , 747 New Customers
on-boarded during Q3 2022 (Q3 2021: 26,169) . This was driven by
the Group's diversified marketing approach and targeted
technological marketing investment strategy.
The number of Active Customers remained robust during the first
nine months of FY 2022 at 250, 553 (YTD 2021: 367,573), driven by
the Plus500 's focus on customer engagement initiatives and
investments in product development. ARPU was very strong at $2,817
during the first nine months of FY 2022 (YTD 2021: $1,517), driven
by the Group's excellent revenue performance.
AUAC during the first nine months of FY 2022 was $1,4 8 7 (YTD
2021: $750), driven by the Group's continued significant
investments to attract high value, long term customers, through
various marketing and retention initiatives. With further
investments expected to be made going forward, to help deliver
consistent future returns, the Group continues to expect that AUAC
will rise steadily over time.
Average client deposits increased significantly by 58% to a
level of approximately $6,800 during the first nine months of FY
2022 (YTD 2021: approximately $4,300) and approximately $ 3,900 in
Q 3 2022 (Q 3 2021: approximately $2,750), highlighting customers'
on-going loyalty and confidence in Plus500's technology and diverse
product portfolio.
The Group remains in a very strong financial position, with cash
balances above $950m as at 30 September 2022 (31 December 2021:
$749.5m).
Strategic progress
Plus500 made further strategic progress in entering new markets
and launching new products during the first nine months of FY 2022,
thereby further diversifying the Group's revenue streams and
business model.
During the period, excellent traction was made in the
substantial US Futures market where the Group targets a number of
major growth opportunities.
To activate the significant retail trading opportunity, Plus500
recently launched TradeSniper, an intuitive new proprietary Futures
trading platform specifically tailored for the US retail market,
both on iOS and Android. This will enable the Group to benefit from
the continued increase in accessibility to the Futures market for
the retail trading community.
In addition, the Group continued to develop its strategic
position in the US as a market infrastructure provider during the
period, supporting institutional clients with brokerage-execution
and clearing services. This will be driven by the Group's healthy
balance sheet, its highly differentiated technological capabilities
and its position as a full clearing member of the CME Group
exchanges.
The Group's strategic positioning in the US was further
developed by continued investment in Plus500's global brand, in
particular through a new sponsorship partnership signed recently
with the NBA Chicago Bulls.
Integration plans for the regulated entity acquired in Japan
earlier this year, are progressing well and remain on track. This
will broaden the Group's geographic footprint into the substantial
Japanese trading market, where Plus500 will apply its financial and
technological strength to scale and develop its market position
over time.
The Company continues to invest in product development to
further deepen customer engagement, including through the on-going
recruitment at the Company's R&D centres in Israel. With these
investments in technology and people, the Group will continue to
leverage the latent base of over 23 million customers registered on
its platforms since inception.
On Tuesday 20 September, the Group held its first ever Capital
Markets Day, hosted by Plus500's management team. The event was
attended by a wide range of analysts and investors and has received
positive feedback from shareholders, who appreciated the details
disclosed at the event on the key elements of Plus500's investment
case, business model and major growth opportunities for the Group.
A recording of the event is available on the Group's Investor
Relations site: https://investors.plus500.com/Reports/Presentation
.
Plus500 will continue to pursue additional growth opportunities,
through organic investments and by actively targeting acquisitions,
in order to further develop its strategic position as a global
multi-asset fintech group.
Outlook
The Board remains confident about the Group's prospects for FY
2022 and beyond, as a result of the significant operational
progress and financial momentum achieved by Plus500 over recent
years.
The Board anticipates that revenue and EBITDA for FY 2022 will
be ahead of current market expectations and continues to expect
that Plus500 will deliver sustainable growth over the medium to
long term.
David Zruia, Chief Executive Officer of Plus500, commented:
"Plus500 has continued to outperform in 2022, driven by the
power of our market-leading proprietary technology and our on-going
ability to attract and retain higher value, long-term customers. We
have made further traction in delivering against our strategic
priorities, in particular in starting to access the major growth
opportunities available in the US. Supported by continued
investment in growth, we continue to diversify and develop the
business as a global multi-asset fintech group, ensuring Plus500
remains well-positioned to deliver sustainable growth over the
medium to long-term."
For further details
Plus500 Ltd.
Elad Even-Chen, Chief Financial +972 4 8189503
Officer +44 7825 189088
Rob Gurner, Head of Investor ir@Plus500.com
Relations
Brunswick
Charles Pretzlik, Partner +44 20 3128 8549
Paul Durman, Partner Plus500@mhpc.com
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 and
Japan 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 .
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", "project", "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 September 2022 and 30
September 2021 included in this announcement are unaudited
[2] YTD - "Year to Date" refers to first nine months of the
year, from 1 January to 30 September
[3] ARPU - Average Revenue Per User
[4] AUAC - Average User Acquisition Cost
[5] New Customers - Customers depositing for the first time
[6] Active Customers - Customers who made at least one real
money trade during the period
[7] 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)
[8] Market expectations based on compiled analysts' consensus
forecasts, which can be found on the Investor Relations section of
the Company's website
[9] Customer Trading Performance - gains/losses on customers'
trading positions
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END
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(END) Dow Jones Newswires
October 11, 2022 02:00 ET (06:00 GMT)
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