Fintech group tops analysts’ estimates after rise in “high-value” traders

Fintech trading group Plus500 topped market expectations today when it said full-year revenue rose to around 683 million pounds ($832 million) on the back of a boost in “high-value, long-term” customers.

The London-listed Israeli head office, which offers retail services such as stock trading and CFDs, said pre-equity income had grown to 373 million pounds ($454 million) in the months to the end of December – up from 318 million pounds ($387.1 ). m) in 2021- after a strong performance throughout the year.

Plus500 was among a crop of retail platforms to enjoy growth through the pandemic as retail investors looked to profit from wild swings in the market. Unlike some trading companies, it has maintained growth throughout this year, but in the midst of a downturn in the market.

Bosses said today that the growth was a testament to the business model and growth strategy.

“2022 was another excellent year for Plus500, providing further clear evidence of our continued successful execution against our strategic roadmap and key operational objectives,” CEO David Zruia said in a statement.

“The Group’s strategic, operational and financial traction continues to be primarily driven by the power of our market-leading proprietary technology and our ongoing ability to attract and retain higher value customers over the long term.”

Zruia said the group doubled its investment and was set to deliver “sustainable growth” in the “medium to long term”.

Customers at the trade store fell despite the increase in revenue, with around 280,000 using its platform compared to 407,374 in 2021. Chiefs said it had been buoyed by a “significant amount of longer-term, higher-value customers”.

Trading activity also fell towards the end of the year as the World Cup stole traders’ attention, Plus500 said.

Analysts cheered the results today, saying they marked a “strong performance” for the firm, as revenue and EBITDA figures topped estimates by one and two per cent respectively.

“The excellent performance highlights the strength of Plus500’s business model, its proprietary technology and the quality of its customer base,” said analysts at investment bank Liberum.

“Going forward, we believe continued delivery against the diversification strategy will sustain performance.”

Shares in the Plus500 have been boosted by a run of strong results over the past 12 months, trading up 14 percent over the past 12 months. However, they have fallen more than 12 percent from a peak in November.