Fintech Plus500 sees revenue double as London-listed company continues US expansion

Fintech firm Plus500 more than doubled its earnings to $100 million in the first quarter of the year as it cashes in on a US expansion and increases the number of retailers on its platform.

In an update this morning, the London-listed firm said earnings before equity (EBITDA) rose 116 percent to $100.9 million in the three months to the end of March, up from $46.7 million in the previous quarter.

Plus500 has posted a string of bumper results as amateur traders continue to bet on the markets despite extreme volatility over the past year.

Revenue from customers came in at $157.8 million in the three months to the end of March, the firm said, reflecting retention of “higher value customers” on the platform.

Chief David Zruia said so By AM. this morning that the company was now looking to double its geographical expansion in the US in the years ahead.

“We expect to generate about $250 million between three to five years from the United States,” Zruia said in an interview. “I can share that with you [we are] going very well with these plans”.

Retail and investment platforms saw a surge in revenue through the pandemic as home investors took to the markets. But unlike some of its peers, Plus500 has managed to maintain customers through a downturn this year.

The firm said today that it had signed up over 28,000 new customers in the period, and the number of active customers was five per cent higher than in the fourth quarter last year.

Zruia said “more instruments, more tools, more education” had helped retain customers despite volatility.

“All of these basically get customers to shop more and stick more with the platform,” he added.

The results were cheered by analysts today, and Liberum doubled its buy recommendation.

“Plus500 continues to trade well, delivering another excellent financial performance, reflecting a business model built on a unique, proprietary technology stack that delivers customer acquisition and retention,” said analyst Nick Anderson.

“Cash generation remained strong in the quarter, allowing for significant shareholder returns and further investment in the group’s growth and diversification strategy which aims to build a multi-asset fintech platform.”

Shares in the company traded up 0.7 percent following today’s announcement.