Plus500 sees revenues rise before traders got distracted by Euro 2024
- Plus500 reported first-half earnings before nasties grew by 6% to $183.9m
- CEO David Zruia said Plus500 saw 'excellent financial and operational progress'
Plus500's profits have increased even though the European Football Championships dampened financial activity over recent weeks.
The financial technology company reported earnings before nasties grew by 6 per cent year-on-year to $183.9million in the first six months of 2023 and by 11 per cent to $81.3million in the second quarter.
It also revealed that revenue expanded by 8 per cent to $398.2million over the first half and by 14 per cent to $182.6million between April and June.
Trading activity fell as customers turned their attention to Euro 2024 - a trend seen during previous big tournaments
David Zruia, the group's chief executive, said Plus500 achieved 'excellent financial and operational progress' amidst challenging market conditions.
Towards the latter part of both periods, the Israeli business noted that activity levels fell as anticipated because of Euro 2024, a trend observed during previous football tournaments.
However, the firm added 56,759 new customers from January to June, compared to 50,449 over the equivalent time last year.
Analysts at Panmure Liberum remarked: 'The fact active customer numbers have continued to increase despite subdued market conditions in the period highlights the strength of the business.'
Plus500 expects its annual results to align with market forecasts following the first-half performance.
Analysts predict the FTSE 250 group will achieve a turnover of $697.8million and earnings before nasties of $314.6million this financial year.
Zruia told investors: 'Plus500 remains well positioned to capitalise on both short-term market conditions and the longer-term growth trends in its end markets.
'In the short-term, our increasingly diversified offering and intuitive trading platforms allow customers to access a wide variety of products, services and features across multiple markets.'
Plus500 specialises in selling contracts for difference (CFD), an agreement in which traders bet on the future price of a financial asset, such as a commodity or stock, without owning the asset in question.
Traders will turn a profit if the market moves in their favour, with the size of the profit dependent on the difference between the opening and closing trade prices.
The company is known for sponsoring prominent sports clubs, such as the Chicago Bulls basketball team and European football sides Atalanta, Legia Warsaw, and BSC Young Boys.
Plus500 shares were 4 per cent lower at £22.22 on late Monday afternoon, but have still expanded by around 35 per cent since the year started.
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