Half Year Trading Update

RNS Number : 8401E

Plus500 Limited

12 July 2021

 

12 July 2021

Plus500 Ltd.

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

Half Year 2021 Trading Update

Plus500, a global Fintech Group operating a leading technology platform for trading Contracts for Difference ("CFDs") internationally, today issues the following trading update for the six months ended 30 June 2021^[1].  

The Company delivered significant further positive momentum during the first half of 2021, despite a relatively stable market environment in Q2 2021, when compared to recent periods, and against a record performance during 2020.

Customer Income ^[2] , a key underlying growth metric for Plus500, reached $379. 2 m in H1 2021 (H1 2020: $556.9m, H1 2019: $175.0m), including $157.7m in Q2 2021 (Q2 2020: $323.4m, Q2 2019: $93.0m). Group revenue in H1 2021 was $34 6 . 2 m, (H1 2020: $564.2m, H1 2019: $148.0m), including $14 3 . 0 m in Q2 2021 (Q2 2020: $247.6m, Q2 2019: $94.1m).

The Company's positive momentum during H1 2021 was evidenced by another very strong period of customer acquisition. In addition, there was a continued high level of activity within the platform driven by an Active Customer ^[3] base which has grown significantly over the last few years.

This performance reflects Plus500's on-going success in onboarding a substantial number of New Customers^[4] through continued significant investment in the Company's marketing technology, to drive attractive return-on-investment over time. 136,980 New Customers were onboarded during H1 2021 (H1 2020: 198,176, H1 2019: 47,540), including 47,574 New Customers in Q2 2021 (Q2 2020: 115,225, Q2 2019: 26,234), reflecting continued interest in Plus500's trading offering and being well ahead of the H2 2020 comparative period.

The Company's financial position remains robust, and cash balances remain healthy, driven by the strong EBITDA performance and continued high cash generation during the period.

Continued transition into a global multi-asset Fintech Group

Over the last 12 months, the Company has made significant progress in delivering against its new vision to evolve into a global multi-asset Fintech Group over time, supported in particular by further investment in Plus500's market-leading proprietary technology platform. This will ensure that Plus500 can continue to successfully retain its customers, by offering them a wide range of products, and also to support the Company as it seeks to attract new customers and enter new geographies.

Launch of 'Plus500 Invest', the Company's new share dealing platform - expands Plus500's product range and geographic footprint

A major milestone in executing against this vision was achieved earlier this month with the launch of 'Plus500 Invest', the Company's new share dealing platform, in selected geographies. Plus500 will continue rolling out 'Plus500 Invest' in further geographies over the coming months, to ensure the further expansion of the Group's product range and geographic footprint.

Futures and options on futures in the US - a major growth opportunity for Plus500

Furthermore, the acquisition of Cunningham Commodities LLC. ("Cunningham"), a regulated Futures Commission Merchant, and Cunningham Trading Systems LLC. ("CTS"), a technology trading platform provider was announced on 21 April 2021. This acquisition, expected to complete in the coming weeks, represents a major growth opportunity for Plus500, allowing the Company to instantly expand its geographic footprint and product offering in the significantly growing, but under-penetrated, US retail trading market in futures and options on futures.

Outlook

The Company's strong performance in H1 2021 was delivered despite regulatory changes implemented in Australia during the period, the impact of which is as expected to date and will continue to be assessed by the Board of Directors of the Company ("the Board").

The Board remains confident about the Company's performance during the remainder of FY 2021 and beyond.  Plus500's market-leading proprietary technology platform, flexible and scalable business model and robust financial position leave the Group well positioned to deliver a strong and consistent performance over the medium and long term.

The Company will publish its half-year results  for the six months ended 30 June 2021 on 17 August 2021.

David Zruia, Chief Executive Officer, commented:

"Plus500's excellent performance so far in 2021 was driven by the strength and agility of our technology and its ability to respond rapidly to market developments, news events and customer requirements.

"We have multiple opportunities from which to access future growth through both continued organic investment and targeted acquisitions, by expanding our CFD offering, launching new trading products, introducing new financial products and deepening engagement with our customers.

"Our long-term ambition is to enable simplified, universal access to financial markets as we continue to transition into a global multi-asset Fintech Group . We are thrilled to be already making significant progress in delivering this vision, with the recent launch of Plus500 Invest and the acquisition of Cunningham and CTS, both of which ensure that Plus500 can offer customers a diversified portfolio of products.

" Supported by our continued success in accessing such growth opportunities in the future, through further investment in organic growth and additional bolt-on acquisitions to diversify our product portfolio and geographic mix, we aim to deliver growth and consistent levels of cash generation over the medium to long term."

For further details Plus500 Ltd Elad Even-Chen, Chief Financial Officer Rob Gurner, Head of Investor Relations [phone] [phone] [e-mail] MHP Communications Reg Hoare, Rachel Mann, Pete Lambie [phone] [e-mail]

About Plus500

Plus500 operates a proprietary technology platform for individual customers to trade CFDs internationally. The Group offers more than 2,500 different underlying global financial instruments, comprising equities, indices, commodities, options, ETFs, foreign exchange and cryptocurrencies. Customers of Plus500 can trade CFDs in more than 50 countries and in 31 languages. The trading platform is accessible from multiple operating systems (Windows, iOS, Android and Surface) and web browsers. The Group retains operating licences and is regulated in the United Kingdom, Australia, Cyprus, Israel, New Zealand, South Africa, Singapore and the Seychelles.  In 2021, Plus500 launched 'Plus500 Invest', a share dealing platform, in selected geographies.

Customer care is and has always been integral to Plus500, as such, customers cannot be subject to negative balances. A free demo account is available on an unlimited basis for 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. The Group does not utilise cold calling techniques and does not offer binary options.  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 Company'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 factors.  These forward-looking statements are based on numerous assumptions regarding the present and future business strategies of such entity and the environment in which each 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.

 

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[1] All figures for the period ended 30 June 2021 included in this announcement are unaudited  

[2] Customer Income - Revenue from customer spreads and overnight charges

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

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

 

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