Plus500 Q3 Revenue Jumps YoY, Fall from 2020 Peak Continues

The company stock price went down sharply at the market opening hours on Tuesday.

Online contracts for differences (CFDs) brokerage, Plus500 has published its trading update for the third quarter of 2020, showing a continued slump in activity since the peak achieved in the first quarter, but solid growth when compared with the previous year’s metrics.

The revenue for the latest quarter was $216.4 million, a jump of 96 percent when compared with the same quarter of the previous year, but a significant slump from the earlier numbers posted in 2020. The broker’s revenue touched an all-time high at $316.6 million in Q1 of 2020, and though it dropped in the consecutive quarter, it still remained $249 million.

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EBIDTA during Q3 increased by 91 percent year-on-year to $134.2 million with a margin of 62 percent.

The brokerage has continued to attract thousands of new traders as well, but the number falls short of the previous two quarters. Last quarter, 46,238 new traders joined Plus500, with 197,976 total active traders.

Customer income for the period stood at $240 million, a year-on-year jump of 124 percent. This number is the second-highest achieved by the brokerage, only behind Q2 of 2020.

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Commenting on the results, Plus500 CEO, David Zruia said in the statement: “Plus500 has delivered an excellent performance during Q3 2020, building on the positive momentum already achieved in the first half of the year.”

“This performance has been driven by the quality and differentiation of our proprietary technology, which has enabled our business to consistently support our customers in these unprecedented market conditions.”

Share Buyback Continues

The brokerage is also in the process of repurchasing $67.3 million worth of its own ordinary shares, a program it launched in August. Last quarter, the company repurchased $18.1 million of its shares and continued to regularly take shares from the market.

Since its initial buyback program, Plus500 acquired over 10 million of its ordinary shares, constituting 10 percent of the total issued shares.

Meanwhile, the market reacted strongly with the results as Plus500 share price tumbled sharply shedding over 6 percent at the market opening on Tuesday.

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