Plus500 has posted an H1 trading update which covers 2021 trading up to the 30th June. The company reported a healthy performance, although it does show a decrease in revenue from the H1 for 2020. However, Plus500 believes that there are mitigating circumstances for this drop in revenue and is not seeing it as a significant worry. The company will release the full trading results on the 17th August 2021.
Part of the reason for the significant increase in trading revenue for H1 2020 is the Covid-19 pandemic. This is obviously an unexpected incident, therefore, the company is taking these figures as an anomaly.
The figures that have been released show several interesting trends. The H1 group revenue for 2021 was $346.2 million. This has been compared to the H1 for 2020, which was $564.2 million, and the H1 for 2019, which was $148 million.
These figures show that the growth from 2019 to 2020 was almost unprecedented, with more than 3.8 times the revenue generated. However, the drop in group revenue for 2021 isn’t a cause for concern. It’s widely regarded that the 2020 growth was largely down to Covid-19 and a surge in trading worldwide. This isn’t something that can be replicated every year, so this level of trading isn’t likely to continue in the long term, the company said.
This is why the company feels that comparing the 2021 performance to the 2019 performance gives a more accurate analysis. Plus500 managed to generate more than twice the revenue in H1 2021 for the same period in 2019.
The trading update also mentions that the company managed to achieve this even in the face of Australia changing its regulatory requirements. It’s also expecting to post a strong H2 due to the launch of its newest innovation, Plus500 Invest.
Plus500 Invest is a share trading platform and will see a limited release initially. It will be released to additional countries as the logistics behind the release are confirmed.
On top of that, Plus500 also managed to acquire a company that will allow it to increase its offerings to the US geography. Cunningham LLC is both a regulated futures commission market and has a trading platform in place as well. It will allow Plus500 the opportunity to grow in this region at a much faster rate.
David Zruia, the CEO of Plus500, had this to say:
David Zruia Source: LinkedIn
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.
Having gained a degree in economics, Alan entered the world of financial services starting his career in London and then moving to New York for a number of years. His first post at a City bank saw him establish a reputation as an forex trader. Having recently returned from New York after eight successful years, Alan is now a prosperous trader in his own right concentrating on commodities and forex.