Plus500 Reports Record First Half Year Results for H1 2016
- Brexit volatility helped Plus500 achieve 25% revenue growth and 40% more operating cash flow compared to H1 2015.
The London Stock Exchange listed brokerage Plus500 (LON:PLUS) has just published its first half year metrics, showing a strong performance for the six months period which ended on the 30th June, 2016.
The figures show continued growth in active customers, up 12% to 104,119, and in new customers, up 9% to 56,929, substantially ahead of Plus500 expectations. The news of the record performance should not be surprising at all as Plus500 already reported new record revenues in Q1 2016 as well as an all time daily record for new clients following Brexit.
The firm says this performance has temporarily suppressed EBITDA margins and ARPU due to acquisition and onboarding costs being incurred prior to generating revenues from the new customers and that these additional customers are expected to benefit revenues and margins going forward with an anticipated increase in ARPU. At the bottom line, excluding the additional acquisition and onboarding costs, EBITDA margins were over 50%.
Additional operational highlights in H1 included UK market share increase for Plus500 as well as continued mobile and tablet adoption growth - this segment now represents 68% of revenue. The firm also reports it has made a significant investment in compliance.
Asaf Elimelech, CEO, Plus500
Asaf Elimelech, Chief Executive Officer of Plus500, commented: "Plus500 achieved record first half results whilst continuing to grow both its Active and New Customers. This performance was driven by continued marketing activity and market Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term; the UK's Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term decision boosted customer activity in late Q2 - leading to increased New Customer sign ups, customer re-activations, and customer trading levels.
We have started the second half strongly as these New Customers deliver growth in revenues with an associated bounce back in margins. We are encouraged by the continuing levels of new and existing customer activity resulting from the market volatility and our own actions as we continue to invest in enhancing the business to deliver future growth.
Overall our expectations are unchanged - momentum is expected to continue, resulting in strong growth in 2016."
The London Stock Exchange listed brokerage Plus500 (LON:PLUS) has just published its first half year metrics, showing a strong performance for the six months period which ended on the 30th June, 2016.
The figures show continued growth in active customers, up 12% to 104,119, and in new customers, up 9% to 56,929, substantially ahead of Plus500 expectations. The news of the record performance should not be surprising at all as Plus500 already reported new record revenues in Q1 2016 as well as an all time daily record for new clients following Brexit.
The firm says this performance has temporarily suppressed EBITDA margins and ARPU due to acquisition and onboarding costs being incurred prior to generating revenues from the new customers and that these additional customers are expected to benefit revenues and margins going forward with an anticipated increase in ARPU. At the bottom line, excluding the additional acquisition and onboarding costs, EBITDA margins were over 50%.
Additional operational highlights in H1 included UK market share increase for Plus500 as well as continued mobile and tablet adoption growth - this segment now represents 68% of revenue. The firm also reports it has made a significant investment in compliance.
Asaf Elimelech, CEO, Plus500
Asaf Elimelech, Chief Executive Officer of Plus500, commented: "Plus500 achieved record first half results whilst continuing to grow both its Active and New Customers. This performance was driven by continued marketing activity and market Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term; the UK's Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term decision boosted customer activity in late Q2 - leading to increased New Customer sign ups, customer re-activations, and customer trading levels.
We have started the second half strongly as these New Customers deliver growth in revenues with an associated bounce back in margins. We are encouraged by the continuing levels of new and existing customer activity resulting from the market volatility and our own actions as we continue to invest in enhancing the business to deliver future growth.
Overall our expectations are unchanged - momentum is expected to continue, resulting in strong growth in 2016."