Plus500 revenues fall 14% QoQ but YoY growth continues in first half 2016

Retail Forex and CFDs broker Plus500 Ltd (LON:PLUS) continues to issue stellar financial results, although the company’s growth seems to have slowed a bit in Q2-2016.

Plus500 released its First Half 2016 financial report this morning, indicating that the company’s Revenues in Q2 came in at $73.6 million – one of its best quarters ever on the top line, but still a 14% decline from the record $85.2 million Plus500 recorded in Q1.

Year-over-Year, The London Stock Exchanges traded Plus500 is growing nicely with First Half revenues of $158.8 million coming in 25% above last year.

Plus500 earned $59.1 million in EBITDA in the first half of 2016, up 6% from last year.

And just as important, Plus500 indicated that its third quarter is going well, with post-Brexit trading being very active. And, the company continues to sign up new clients at a healthy clip.

From a technology perspective, Plus500 continues to stay ahead of its competitors with fully 68% of its trading revenues coming from trades which clients initiated on mobile devices (including tablets). The industry average today sits just below 50%.

Plus500 quarterly revenues Q2 2016

Some highlights from the first half of 2016 at Plus500:

  • Continued growth in Active Customers – increased 12% to 104,119 (H1 2015: 93,267)
  • Continued growth in New Customers – increased 9% to 56,929 (H1 2015: 52,217)
  • EBITDA margins and ARPU declined due to acquisition and onboarding costs being incurred prior to generating revenues from the New Customers
  • UK market share for CFDs increased, with Plus500 now earning 18% of its Revenues from UK clients, up from 15% last year
  • Mobile and tablet adoption have continued to grow and now represent 685 of revenue

Plus500 financial highlights Q2 2016

Q2 2016 marked the first quarter for Plus500’s new CEO Asaf Elimelech. He had the following to say about the company’s first results under his stewardship:

Plus500 achieved record first half results whilst continuing to grow both its Active and New Customers. This performance was driven by continued marketing activity and market volatility; the UK’s Brexit decision boosted customer activity in late Q2 – leading to increased New Customer sign ups, customer re-activations, and customer trading levels.

We have started the second half strongly as these New Customers deliver growth in revenues with an associated bounce back in margins. We are encouraged by the continuing levels of new and existing customer activity resulting from the market volatility and our own actions as we continue to invest in enhancing the business to deliver future growth.

Overall our expectations are unchanged – momentum is expected to continue, resulting in strong growth in 2016.

To see the full Plus500 first half 2016 report click here.

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