- Plus500 shares up 4% year-to-date
- Expands US futures business
- Balance sheet robust at $900 million approximately
Plus500 (PLUS), the global multi-asset fintech group said it made ‘excellent progress’ in the year ending 31 December 2023.
The company generated revenue of approximately $725 million and earnings before interest taxation and depreciation (EBITDA) of approximately $340 million, which are both significantly ahead of current market expectations.
The group’s balance sheet remains robust and cash balances as of 31 December 2023 were approximately $900 million.
The shares were up 5% to £17.52 in morning trading.
Plus500 tops FTSE 250 after maintaining full year outlook
The company announced the expansion of its US futures businesses with the launch of a localised retail trading platform in Japan and made further progress in the United Arab Emirates (UAE) market following the grant of a regulatory licence earlier in the year.
Plus500 now holds 13 regulatory licences globally and its US business has joined the Futures Industry Association (FIA) enhancing its competition edge.
Analysts at Jeffries remain upbeat on Plus500 saying: ‘The trading update implies a strong finish to the year, with revenue and EBITDA 12% and 13% ahead of consensus, which we expect to rise for future years.
‘With the EBITDA margin flat on the first nine months at 47%, volumes may have ticked up, consistent with progress in Japan, the US and UAE. $350 million of distributions take the total paid out to over $2 billion since listing. Good momentum, a robust cash balance and some predictable volatility events bode well for 2024.’
CMC SHARES RISE 24%
On a separate note, shares in CMC Markets (CMCX) were up 24% to 137p in morning trading as the online trading platform reported a strong third-quarter performance and raised its full year 2024 guidance.
The company now expects full year 2024 net operating income of between £290 million and £310 million up from previous guidance of £250m to £280 million.
CMC said the strong performance was due to an ‘improvement in market conditions led by an increased contribution from the B2B and institutional business.’
The next scheduled update for CMC will be on 9 April.
