Plus500 Crushes Q4 Financial Results, Shares Higher, Considers Main Market Listing on LSE

Plus500 shares are at an all-time high this morning as the broker has posted full year revenue of $115.1 million

plus500 logoUK forex and CFD broker, Plus500 has posted its FY 2013 financial results this morning. For the year, the broker reported revenue of $115.1 million and net profit of $50.6 million, which were higher by 105% and 196% respectively from 2012, while EPS rose 176% to $0.47. At a yesterday’s closing price of 333p, shares of Plus500 were trading at a PE of 11.9 based on 2013’s figures. On the news though, shares are currently up 28% to 431p, easily surpassing the previous all-time high of 350p set in mid-January. Shares have been moving higher all year, and are up over 125% since the broker announced in its November Trading Update that it expected to post financial results ahead of market expectations.

Following their update, the actual figures have backed up the trading update as for the quarter, based on 9 month results posted in October, Plus500 having achieved record revenues of $50.4 million. To put in perspective, the Q4 results more than doubled Q3’s $20 million figures, and surpassed the $46 million revenue amount for the first half of 2013. The broker ended the year with 49,834 active accounts in Q4. The record revenues and profits were boosted by average revenue per user (APRU) rising to $1,011, compared to $476 in the same period in 2012, as well as a decline in average user acquisition costs (AUAC) to $542 from $662 in 2013. The APRU figure was highlighted when Forex Magnates reviewed Plus500’s H1 2013 results, as at $898 it was more than 50% below that of fellow CFD broker IG. As such, following their IPO and increase of company awareness, Plus500 appears to be doing a good job of leveraging their brand to acquire more wealthy and higher volume account holders.

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Forecasting for 2014, Plus500 stated that, “Trading in the 7 weeks to February 19th has been strong.” In addition, they added that they are considering a move from the London’s AIM market to listing on the main LSE. (Forex Magnates is planning a more in-depth review of Plus500’s financials later in the day).

Commenting on the earnings, Gal Haber, Chief Executive of Plus500, stated in the company’s public release, “We are delighted to announce our maiden full year results since listing in London. Our business has shown strong growth throughout 2013 during which time we generated record levels of both revenue and profits. The IPO has provided a positive catalyst for our business, particularly within the European and Australian markets where our strong presence and innovative marketing initiatives are generating significant levels of activity across our platform.” He added, “The business remains well placed to build on the growth experienced during 2013 as we look to continue our growth ambitions and expand our geographic footprint. We are delighted to be declaring both an ordinary dividend in line with our 50% payment target and a special dividend to reflect the financial strength of the Group. In view of the strong start to 2014, the Board remains confident of delivering further considerable growth in 2014 and beyond.”

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