Plus500 reports 21% increase of new customers since the start of Q2

Online service provider for trading CFDs, Plus500 issued a trading update, reporting persistent heightened levels of market volatility.

Plus500 reported continued record levels of customer trading activity in the fluctuating market. The Company’s financial and operational KPIs performances remained strong. Group continued to attract significant numbers of new customers and registering increased levels of activity among existing customers. Plus500 trading platform reported 100,574 new customers since the start of Q2, which is already ahead of expectations for the entire quarter and 21.2% more than the 82,951 new customers added in Q1.

Customer income revenue remains high with $249 million generated in Q2 so far. The total revenue for Q2 to this date is $102.5 million. The board expects the Customer Trading Performance to be natural over time as the current aggregate numbers represent insignificant proportion of revenue over many years historically.

Plus500 reported a significant increase in net client deposits, currently at approximately $488.4 million, three times the level as at 31 December 2019.

Plus500 office

The company expects the performance to revert to normal over the financial year. The revenue and profitability for the full year is expected to be in-line with consensus expectations.

David Zruia, Interim Chief Executive Officer, said:

David Zruia, Plus500

David Zruia

We are pleased the business has continued to generate record levels of Customer Income, added over 100,000 new customers so far in Q2 and has materially grown the net client deposits balance to almost half a billion dollars.

We have consistently stated that Customer Trading Performance2 is subject to significant market movements and is therefore likely to fluctuate. This is magnified during periods of heightened market volatility such as those we are currently experiencing and given the growing scale of the business. Nonetheless we continue to expect this performance to revert to a medium-term historic level of near zero and our outlook for the year remains unchanged.

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