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Plus500 reports significant revenue growth for Q1



Online service provider for trading CFDs, Plus500 issued trading updates on first three months of 2020.

The company reported Q1 revenues and earnings with increased levels of customer trading activity and strong performance across all key financial and operational KPIs. Q1 revenue reached $316.6 million with 487% increase compared to the same period last year and 230% compared to the last quarter of 2019. The exceptional growth was result of significantly increased volatility across global financial markets. This also drove New Customer acquisition up, reaching 82,951, showing the company’s technological potential, marketing capabilities and its ability to respond rapidly to news flow and market demand.

Plus500 office

AUAC2 dropped by 48% compared to the same period last year as a result of continued efficiency of Plus500's marketing algorithms and improved conversion ratio. Cash balance at the end of the period, 31 March 2020, reached c.$515.6m Operational leverage brought strong Q1 Group EBITDA3 margin and cash conversion with revenue and profitability for the full year expected to be substantially ahead of current consensus expectations.

 Q1 2020*

Q1 2019*

 % Change

 

Q4 2019*

 % Change

Q1 20 Vs. Q4 19

Revenue

$316.6m

$53.9m

487%

$95.9m

230%

Number of New Customers1

82,951

21,306

289%

19,489

326%

Number of Active Customers4

194,024

97,921

98%

99,247

95%

ARPU5

$1,632

$550

197%

$966

69%

 

AUAC2

$641

$1,230

 (48)%

$1,124

(43)%

*Unaudited
[1] Customers depositing for the first time ever
[2] AUAC – Average User Acquisition Cost
[3] EBITDA – Earnings before Interest, Taxes, Depreciation and Amortization
[4] Customers who made at least one real money trade during the period
[5] ARPU – Average Revenue Per Active User

Plus500 has a stable level of cash to support its activity. The Board maintains the company’s shareholder returns' policy to return at least 60% of net profits on a half-yearly basis to shareholders and it will continue to evaluate he availability of any excess capital and prioritise its use.

Asaf Elimelech, Chief Executive Officer of Plus500, said:

Asaf Elimelech, Plus500
Asaf Elimelech, Plus500

Plus500 has achieved exceptional first quarter results, thanks to our dedicated people working efficiently during these challenging times.

Our history to date has proven how we can cope with exceptional market conditions such as those at present. This strong performance emphasises the technological edge that the Company retains, demonstrated not only by our ability to handle exceptional customer activity while maintaining the same high quality of service, but also in our flexible marketing capabilities and outstanding customer experience that has attracted significant numbers of new customers at an attractive cost.

As a result of the exceptional Q1 performance, revenue and profitability for the full year are expected to be substantially ahead of current consensus expectations. However, as we remain at an early stage in the financial year, and there are global markets uncertainties as well as ongoing regulatory changes, it remains difficult to predict the outcome for the full year.


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Plus500 reports significant revenue growth for Q1

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