Stock Market News
Cryptocurrency trading boosts Plus500 revenues, earnings
Contracts-for-difference trading service provider Plus500 surged on Tuesday as it reported a 284% jump in revenue for the first quarter on the back of market volatility and high levels of interest in its cryptocurrency derivatives offering.
Revenues in the period rose to $297.3m, while earnings before interest, taxes, depreciation and amortisation increased a whopping 418% to $237.3m, both of which were records.
New customers were up 228% to 72,960 and active customer numbers increased 204% to 218,187. Meanwhile, average revenue per user rose 26% to $1,363 and average user acquisition cost fell 45% to $502.
Plus500 said it had benefitted from a period of relatively volatile markets and high levels of interest in its cryptocurrency CFDs offering, which encouraged high levels of new customer sign-ups and record trading.
However, the company said market conditions have returned to "more normal" levels in the last two months, meaning it does not expect "such an exceptional" performance to be repeated in the rest of the year.
Chief executive officer Asaf Elimelech said: "We are pleased to announce another record period in terms or revenues and profits; the results for this quarter reflect our competitive advantages and focus on serving our customers' trading needs.
"Having a flexible business model and a lean cost structure, enables us to optimise our performance as necessary despite the recently announced regulatory changes. Having the industry leading framework enables us to be confident about the future."
At 0840 BST, the shares were up 9.7% to 1,545p.
Revenues in the period rose to $297.3m, while earnings before interest, taxes, depreciation and amortisation increased a whopping 418% to $237.3m, both of which were records.
New customers were up 228% to 72,960 and active customer numbers increased 204% to 218,187. Meanwhile, average revenue per user rose 26% to $1,363 and average user acquisition cost fell 45% to $502.
Plus500 said it had benefitted from a period of relatively volatile markets and high levels of interest in its cryptocurrency CFDs offering, which encouraged high levels of new customer sign-ups and record trading.
However, the company said market conditions have returned to "more normal" levels in the last two months, meaning it does not expect "such an exceptional" performance to be repeated in the rest of the year.
Chief executive officer Asaf Elimelech said: "We are pleased to announce another record period in terms or revenues and profits; the results for this quarter reflect our competitive advantages and focus on serving our customers' trading needs.
"Having a flexible business model and a lean cost structure, enables us to optimise our performance as necessary despite the recently announced regulatory changes. Having the industry leading framework enables us to be confident about the future."
At 0840 BST, the shares were up 9.7% to 1,545p.
Related share prices |
---|
Plus500 Ltd (DI) (PLUS) share price |
Stock News headlines are gathered from financial news sources around the web. Views and opinions on each item are from their respective authors and website. They are not opinions of LiveCharts.co.uk
Get a free widget for your website with our latest headlines.
You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.
Top Shares pages
- Share price quotes
- Share charts
- Share watch list
- Company Results Calendar
- Top Large UK Shares
- UK Market Sectors
- Stock market news
- Company news
- Share tips
- A-Z company search
More share features
POPULAR Share Prices
- Royal Mail share price
- Lloyds share price
- HSBC share price
- Barclays share price
- Prudential share price
- Santander share price
- NEXT share price
- Diageo share price
- BP share price
- Vodafone share price
- British Airways
- Centrica share price
- Tesco share price
- Taylor Wimpey Share Price
- National Grid
- GKP Share Price
- Marks and Spencer
- Rolls Royce
- Rio Tinto
- THG Share Price
- Aviva Share Price
- Boil Share price
- Easyjet Share Price
- Genedrive Share Price
- SSE Share Price
- IAG Share Price
- Boohoo share price
- HE1 share price
- AVCT share price
- BOOM share price