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%.
The FBS CopyTrade Team Presents a New 'FBS CopyStar' ContestGo to article >>
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, 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; the UK’s Brexit 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.”