Fresh after raising $75 million on the London Stock Exchange’s AIM marketplace in July, the CFD and FX broker has released its first financial reports. Providing interim first half 2013 results, revenues rose 47% to $44.7 million from $30.3 million during the same period in 2012. Similarly, bottom line net profit was higher by 59% to $15.4, with adjusted earnings per share of $0.15. Average revenue per user (ARPU) was recorded at $898 during the period, compared to $722 in 2012. The figure calculates to nearly 50,000 revenue generating clients during H1 2013, and about 42,000 in 2012. Although growing, the APRU figure was well below that of the IG Group, the UK’s largest CFD and spreadbetting broker, who reported average revenues of £1,819 (@$2700) for the first half of 2013. The lower number from Plus500 suggests that the broker’s average client size is substantially less than that of IG, high attrition rates, and or low rates of revenue per million dollars of volume traded.
Other notable parts of the report included the issuing of an $8 million ($0.07/share) dividend, representing 52% of net income. The dividend is part of the company’s goal to always issue no less than 50% of net income to shareholders. At a recent price of 132p, the dividend calculates to a 7.2% yield. While generous to shareholders, the dividend provides pre-IPO owners the ability to earn gains on their holdings without the need of engaging in a secondary sale of shares to the market. In regards to its top and bottom line growth, Plus500 attributed the gains on the company’s partnership model as they stated, “This performance has been driven by the group’s innovative approach to sales and marketing activities best demonstrated by the highly successful affiliate programme and online marketing campaigns.”
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Cash wise, the broker reported operating cash flow of $15.7 million during the period, with net cash rising 27% to $32.7 million. In addition, the company announced 22% growth in new customers, with active users climbing 18%.
Commenting on the financials, Gal Haber, CEO of Plus500, stated in the company’s public release that, “We are delighted to announce our maiden interim results. Our listing on the London market in July has provided the group with a strong base from which to drive growth of the Plus500 brand internationally.” He added, “As shown today, we have achieved a strong trading performance in the first half, reporting a 47% increase in revenue and more than a 50% increase in profitability, helped by growth in customers as well as particularly active financial markets. Our low cost operating model and highly targeted marketing strategy continue to underpin our growth. Looking ahead, we have a clear strategy for growth in our customer base, leaving us well placed to benefit from future periods of strong market activity. We are confident of meeting market expectations for the full year and are focused on generating strong returns for our new shareholders into the future.”
On the news, shares of Plus500 (PLUS.L) are trading at 136p, up 3.4% on the day.