Profits All-round for Plus500 – Net Profit Hits Record $102.5 Million

The UK listed broker reports strong annual financials for 2014. Overall results showed solid gains in revenues, net profit and

IMG_9356.JPGPlus500 reports a sharp rise in key financial metrics for the year of 2014. The FX and CFD brokerage firm has been a catch for investment banks and asset management firms and the current results reflect the firm’s position as one of the fastest growing companies in the margin derivatives sector.

Revenues increased 99% from figures reported in 2013, reaching $228.9 million, with the firm’s net profit also in the green rising 102.6% to $102.5 million. The news gives a much needed boost to both the forex and CFD trading industry, as well as to the London regulated broker.

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Key Financial Data 2014

  • Revenue increased 99% to $228.9 million (FY 2013: $115.1 million)
  • EBITDA1 increased 116% to $145.4 million (FY 2013: $67.3  million)
  • EBITDA margin increased to 63.6% (FY 2013: 58.5%)
  • Net profit increased 102.6% to $102.5 million (FY 2013: $50.6 million)
  • Earnings per share increased 89% to $0.89 (FY 2013: $0.47)
  • ARPU increased 63% to $2,160 (FY 2013: $1,325)
  • Operating cash flow of $118.9 million (FY 2013: $57.1 million)
  • Final dividend per share of $0.3001 (total pay out of $34.5 million) and a special dividend per share of $0.2657 (total pay out of $30.5 million), for a total dividend pay out of $65 million with ex-dividend date March 19, 2015
  • Total dividend for 2014 of $92 million, representing a pay out of 90% of net profit for the 12 months ended December 31, 2014
  • Dividend policy increased to a 60% pay out ratio with flexibility to pay special dividends as appropriate

Plus500 was a recent entrant to the UK listed market, joining hands with brokers such as IG and London Capital Group, the firm went for an IPO on the AIM listed market.

Gal Haber, Chief Executive of Plus500, commented in a statement: “We are delighted to announce another year of strong growth, once again achieving record levels of both revenue and profits with an increase occurring in almost all countries in which we operate. In particular, the Company saw a strong finish to the year as volatility in the financial markets resulted in greater trading on our platform.”

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Among the metrics, the broker also reported continued growth in the total number of traders, the broker reporting over one hundred thousand traders.

Mr. Haber added: “Looking ahead, we continue to build our brand online as well as through traditional offline channels such as sponsorship of Atlético Madrid Football Club. We are also maintaining our technological lead through innovation and development to give our customers ease of access to our platform via the PC or any mobile device. The Board believes that its marketing efforts to reach new customers will continue to give the Company momentum resulting in sustained strong growth in 2015.”

German investment bank, Deutsche Bank, became the latest firm to invest in the firm, thus supporting the troubled derivatves trading sctor.

 

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