Plus500 Ltd today (Monday) reported a visible growth in the third quarter of 2024. Its revenue climbed 11% to $187.3 million, and new customer acquisition surged 21% year-over-year.

Plus500 Reports Q3 Growth with 11% Revenue Jump

The company's EBITDA reached $82.2 million, marking a 2% increase from the previous year. However, the EBITDA margin contracted to 44% from 48% as the company continued its strategic investments in market expansion and product development.

“During the quarter, revenue and EBITDA increased by 11% and 2% year-on-year respectively, highlighting our continued investment in attracting new customers, which resulted in the number of new customers increasing by 21% compared to Q3 2023,” commented David Zruia, Chief Executive Officer of Plus500.

Customer trading activity increased significantly, with total trades reaching 14.5 million during the quarter, up from 10.1 million in Q3 2023. Additionally, the company's active customer base grew to 120,968, representing a 2% increase from the previous year. More significantly, the average deposit per active customer jumped 17% to $6,150.

Average Revenue Per User (ARPU) showed improvement, rising 9% to $1,548 in Q3 2024, while the Average User Acquisition Cost (AUAC) increased proportionally to $1,527. Currently, CMC Markets performs best in these metrics. A comparison of five different brokers, prepared by Finance Magnates, can be found here.

“The Group remains strategically well positioned to capture both short-term market dynamics, as well as the longer-term structural growth trends in its end markets, as evidenced by the strong momentum seen during 2024 to date,” Zuria added.

The company also maintained a strong balance sheet with cash reserves exceeding $950 million, even after distributing approximately $75 million in dividends and spending $53 million on share buybacks.

The UAE market, where Plus500 obtained a regulatory license in early 2023, has quickly become a strategic focus. The company is also planning to expand its product offerings in Japan with additional asset classes and trading products.

“For FY 2024, the Board expects that Plus500's performance will be in line with recently upgraded market expectations,” the company concluded.

$110 Million Share Buyback Program

In August, Plus500 introduced a new share buyback program valued at up to $110 million, following a recently completed $100 million buyback announced in February. This initiative is part of a broader $185.5 million shareholder return plan outlined in the company’s H1 2024 results.

Plus500 has consistently engaged in share buybacks, aiming to enhance shareholder value and efficiently manage surplus cash. For publicly traded companies, buybacks can offer tax advantages, improve financial ratios, and consolidate ownership.

“The newest share buyback reflects the Group's strong financial position, cash-generative model, and commitment to delivering steady shareholder returns over the medium term,” the company stated in the announcement.

Under the program’s conditions, Plus500 is authorized to repurchase up to 5,694,522 shares in open market transactions, managed by Panmure Liberum Limited according to predetermined guidelines, with no discretionary influence from Plus500 or its board.

The buyback program will run until March 31, 2025, allowing the company to continue purchases during closed periods within this timeframe if needed.