- Back to sequential revenue and profit growth in Q3
- Full year outlook maintained
- Share buybacks top $2 billion over last decade
Global fintech and trading platform Plus 500 (PLUS) topped the FTSE 250 leaderboard on Tuesday, gaining 7% to £13.97 after the company retained its full year outlook despite lower trading volumes.
The shares have lost around a quarter of their value since January and were trading at three-year lows prior to today’s trading third quarter trading update.
Revenue for the three months to 30 September was 5% higher than the prior quarter at $168.1 million but 14% below the same period in 2022. For the nine months the company generated revenue of $536.6 million down 24% year on year.
Meanwhile EBITDA (earnings before interest, tax, depreciation, and amortisation) fell to $254.4 million from $407.1 million in the prior year for the nine months.
RETAINED OUTLOOK
The board said it remains confident in the group’s outlook despite lower market activity during the period and reaffirmed meeting upgraded consensus revenue and profit expectations.
According to figures provided by the company analysts are forecasting full year revenue of $645 million and EBITDA of $300 million.
The company said its confidence was based on ongoing improvement to attract and retain higher value, long term customers.
CEO David Zruia commented: ‘I am pleased to announce that Plus500 continued to perform well during the third quarter of 2023, driven by our focus on higher-value customer acquisition, geographic expansion and product innovation, despite lower volatility and trading volumes across the global financial markets.
‘The group continues to make good progress against its strategic plans with the expansion into the US, Japan and the UAE markets.’
SHAREHOLDER RETURNS
The company repurchased 1.6 million shares in the third quarter for a total consideration of $29.8 million and said it expects to continue with its ‘highly attractive and sustainable shareholder returns policy’ which has seen approximately $2 billion returned to shareholders over the last decade.
The group ended the period with cash balances above $875 million and remains debt free.
