Half Year 2022 Trading Update

RNS Number : 0801S

Plus500 Limited

12 July 2022

 

12 July 2022    

Plus500 Ltd.

("Plus500", the "Company", or together with its subsidiaries the "Group")

Half Year 2022 Trading Update

Plus500, a global multi-asset fintech group operating proprietary technology-based trading platforms, issues the following trading update for the six months ended 30 June 2022^[1]. 

The strong operational performance delivered during H1 2022, supported by Plus500's ability to attract and retain higher value customers, was achieved despite lower volumes across the financial industry during the period. Given this strong performance, the Board of Directors of the Company (the "Board") expects that Plus500's revenue and EBITDA for the current financial year will be ahead of current market expectations ^[2] .

Another period of outstanding operational and financial performance by Plus500

Plus500 delivered another period of outstanding operational and financial performance during H1 2022, which included the new operations in the US, supported by the positive momentum achieved in recent years and the capability and strength of the Group's market-leading proprietary technology in accessing market opportunities.

Financial and Operational Highlights (unaudited):

	H1 2022	H1 2021	Change %
Revenue	$51 1 .4m	$346.2m	48%
EBITDA	$ 305 . 3 m	$1 87 . 6 m	63 %
EBITDA Margin %	60%	54%	11%

	Q2 2022	Q2 2021	Change %
Revenue	$24 0 .5m	$143.0m	6 8 %
EBITDA	$14 3 .7m	$65.9m	118 %
EBITDA Margin %	60 %	46 %	30 %

Customer Income^[3], a key measure of the Group's underlying performance, was at a level of $3 39 . 8 m in H1 2022 (H1 2021: $379. 2 ) including $1 51 . 8 m in Q2 2022 (Q2 2021: $157.7m). Higher Group revenue reflects Customer Trading Performance ^[4] of $17 1 . 6 m in H1 2022 (H1 2021: $(33.0m)), including $8 8 . 7 m in Q2 2022 (Q2 2021: $(14.7m)).

The Group onboarded 5 7 , 275 New Customers^[5] during H1 2022 (H1 2021: 136,980), including 2 3 ,535 in Q2 2022 (Q2 2021: 47,574). The Group's base of Active Customers ^[6] was 2 1 6 , 928 during H1 2022 ( H 1 2021: 333,940), including 1 45 , 506 in Q2 2022 (Q2 2021: 209,465).

The Company launched a new global advertising campaign during the period to drive brand awareness in key strategic markets, thereby ensuring the Group remains well positioned to attract and retain a higher level of customers over the medium to long term.  

Significant progress in delivering on major growth opportunities in the U.S.

During the period, Plus500 made substantial progress in the significant and fast-growing U.S. futures market. 

Firstly, the Group has built a new strategic position as a market infrastructure provider in the significantly growing U.S. futures market, supporting institutional clients in their trading, clearing and settlement activities.

Secondly, Plus500 has developed, and is expected to launch in H2 2022, an intuitive, user-friendly new trading platform for the substantial retail futures market in the U.S., to capitalise on the recent initiatives and product launches which were originated by the various exchanges operating in the U.S. futures market to increase the market accessibility to the applicable retail audience.

The Group is seeking to maximise these opportunities by deploying its technological expertise and infrastructure and by utilising its financial strength and key market partnerships. Accordingly, the Group will allocate substantial on-going financial and personnel resources to maximise these opportunities in the medium term.

Robust financial position supports continued shareholder returns

Plus500's financial position remains robust and the Group continues to be debt-free since inception, with healthy cash balances of more than $950m as of 30 June 2022 and consistently high levels of cash generation.

With the Group's strong financial position in mind, and reflecting the Board's confidence in the future prospects of Plus500 and its view of the current value of the Company's shares, the Company has announced share buybacks totalling approximately $105.0m since the start of FY 2022.

During the first half of the year, the Company has repurchased 2,670,651 shares, at an average price of £1 4 . 98 , for a total cash consideration of $51.7m.

Outlook - Plus500 remains well positioned for sustainable future growth

The Board remains highly confident about the Group's performance for FY 2022, and therefore anticipates that Plus500's revenue and EBITDA for the current financial year will be ahead of current market expectations.

Plus500 will continue to pursue several major growth opportunities, through organic investments and by actively targeting acquisitions, with entry planned in a number of new markets including the substantial retail market in Japan. Therefore, the Group remains well-positioned to deliver sustainable growth over the medium and long term as a global multi-asset fintech group.

The Company will publish half-year results  for the six months ended 30 June 2022 on 17 August 2022.

Board changes

During the period, Daniel King completed his maximum nine-year tenure as an Independent Non-Executive Director and External Director of the Board. Anne Grim, Senior Independent Non-Executive Director and External Director, has taken Daniel King's place as a member of the Board's Nomination Committee and as Chair of the Remuneration Committee, and Steve Baldwin, Independent Non-Executive Director, has taken Daniel King's place as Chair of the ESG Committee.

David Zruia, Chief Executive Officer, commented:

"Plus500 continued to outperform in the first half of 2022, supported by positive momentum achieved in recent years and by the power of our market-leading proprietary technology. We made significant progress in delivering against our strategic priorities, in particular the major growth opportunities in the U.S., where we continue to make substantial investment.

"In addition, the Group continued to deliver outstanding levels of returns to shareholders during the period, through both recent $60.0m dividend payments and our most recent $105.0m aggregate share buyback programmes, which emphasise the Board's view of the current value of the Company's shares. Our continued strategic, operational and financial momentum will ensure Plus500 delivers sustainable growth in the medium to long term, enabling the Group to deliver further shareholder value in the future."

Professor Jacob A. Frenkel, Chairman, commented on the Board changes:

"On behalf of the Board, I would like to thank Daniel King for his valuable contribution to the success of Plus500 since his appointment to the Board at the time of the Company's IPO in 2013. His expertise working with international technology businesses, has been invaluable in helping to optimise the many opportunities that have arisen for the business during his tenure. In addition, his leadership, contribution and commitment as Chair of the Remuneration and ESG Committees has been extremely appreciated. We wish Daniel all the best for the future."

For further details Plus500 Ltd. Elad Even-Chen, Chief Financial Officer Rob Gurner, Head of Investor Relations [phone] [phone] [e-mail] Brunswick Charles Pretzlik, Partner Paul Durman, Partner [phone] [e-mail]

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 Contracts for Difference ("CFDs") and share dealing, as well as futures and options on futures.

The Group retains operating licenses and is regulated in the United Kingdom, Australia, Cyprus, Israel, Japan, New Zealand, South Africa, Singapore, the United States, Estonia and the Seychelles and through its CFDs 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 CFDs in more than 50 countries and in 30 languages. Plus500 does not permit customers located in the US to trade CFDs.

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, CFD customers cannot be subject to negative balances. A free demo account is available on an unlimited basis for CFD 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", "projects", "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 June 2022 included in this announcement are unaudited  

[2] Market expectations based on compiled analysts' consensus forecasts, which can be found on the Investor Relations section of the Company's website

[3] Customer Income - Revenue from CFD Customer Income (customer spreads and overnight charges) and Non-CFD Customer Income (commissions from the Group's futures and options  on futures operation and from ' Plus500 Invest ' , the Group's share dealing platform)

[4] Customer Trading Performance - Gains/losses on customers' trading positions

[5] New Customers - Customers depositing for the first time

[6] Active Customers - Customers who made at least one real money trade during the period

 

END

 

 

TSTRBMFTMTBBBPT