FCA-regulated brokerage firm Plus500 (LON:PLUS) has reported its H1 2017 interim results for the six month period ending June 30, 2017– they were characterised by an across-the-board growth in key metrics, with notable increases across revenues and new client figures.
For H1 2017, Plus500 yielded a revenue of $188.4 million, compared to $158.8 million in H1 2016, or a 19 percent increase year-over-year.
Moreover, the group’s client on-boarding activity accelerated in the second quarter with the number of new customers growing by 43 percent quarter-on-quarter to 31,671 compared to 22,210 reported back in Q1 2017. Additionally, the number of active clients increased in H1 2017 to 112,317, up from 104,119 over the same period in 2016, which was reflective of a gain of 8 percent year-over-year.
The group also saw its Average Revenue Per User (ARPU) improving to $1,678 in H1 2017, up from $1,525 in H1 2016, or 10 percent higher year-over-year. Plus500 attributed the better AUAC result to the proportion of high value customers, which also provides potential for increased future revenues.
Furthermore, the contribution from trading new instruments and exchanges was also higher, showing notable optimisation of the company’s marketing activity
In terms of the Average User Acquisition Cost (AUAC), Plus500 reported a meaningful decrease as the onboarding costs declined by 37 percent year-over-year to $836 relative to $1,328 in H1 2016.
At the bottom line, Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) was reported at $118.5 million in the six months through June 2017, an increase of 100 percent compared to H1 2016.
Finally, Plus500’s net profit led the charge in H1 2017, climbing to $90.7 million, orchestrating a climb of 104 percent year-over-year from $44.5 million in H1 2016.
Asaf Elimelech, CEO of Plus500, commented on the H1 results: “Plus500 achieved record first half results, significantly ahead of market expectations. New Customers continue to join and the proportion of both New and Active Customers originating from well regulated markets is growing and continues to expand the Group’s community of high quality customers.”
He added: “Our efficient marketing activity and retention initiatives led to increased New Customer sign ups during Q2 2017, customer re-activations and high customer trading levels during the first half. Investment Trends described it well saying that Plus500 has caused a noticeable shift in the industry, where CFDs no longer play second fiddle to the traditionally preferred spread betting product. Overall, our expectations are that with the continuance of the current momentum we will deliver strong year-on-year growth in 2017, which we expect to carry forward into 2018.”