Online provider of contracts for differences (CFDs) trading Plus500 has published a trading update this Monday, revealing its expected performance for its financial year ended on the 31st of December 2019.
The trading update, which was published through the London Stock Exchange (LSE), states that the Group expects to report revenue of around $354 million and an EBITDA of approximately $190 million.
According to the statement, the Board of the Plus500 Group is pleased with the company’s yearly performance, which is the result of a much stronger second half as compared to the first half. However, it is worth noting that the expected revenue is much less than the record $720.4 million in revenue achieved in 2018.
Commenting on the update, Asaf Elimelech, Chief Executive Officer of Plus500, said: “We finished the year in good financial and operational shape following a period of change for the industry, which has provided a more certain regulatory outlook for Plus500.
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“I am encouraged by the momentum we have shown in the second half, reflecting continued optimisation of our marketing spend, enhancements to our customer service, and improvements in our proprietary technology platform. Looking to 2020 we are confident of the prospects for the Group as we focus on further strengthening our customer offering and market positions.”
Plus500 started 2019 on weak footing
As Finance Magnates reported, Plus500 shared with investors that during the first quarter of 2019, the firm’s revenues declined by a whopping 82 percent. The result for the first three months was greatly affected by the deteriorating market condition in FX, equities, and pretty much every other asset class but bonds, which are not the favorite of retail investors.
However, the company did manage to go onto report stronger results in the second and third quarter of 2019. Namely, in Q2, Plus500 reported that revenue increased to around $94 million in the second quarter of this year, higher by 74.4 percent from Q1. Q3’s revenue came in at $110.6 million.
The online trading provider will provide more details on its financial performance for the 2019 financial year when it releases its preliminary results on Wednesday, the 12th of February, 2020.