Publicly traded broker Plus500 published its full financial results for 2023, reporting higher financial indicators than in the preliminary results presented three months ago. However, net profit remained at around $270 million, translating into a decrease of nearly 40% compared to the previous year, when the London-based company earned over $370 million.

Plus500 Closes a Strong Year, but below 2022 Results

At the beginning of January, Plus500 presented a trading update with preliminary results for 2023, significantly exceeding analysts' expectations. The report suggested that revenues would be around $725 million. However, the final report shows that they were higher, reaching $726.2 million.

"Plus500 delivered further strategic and operational progress during FY 2023. This was enabled by our technological expertise, robust financial position and consistent execution against our strategic roadmap in existing and new markets, both organically and inorganically," commented Elad Even-Chen, the Chief Financial Officer of Plus500, in the report.

However, compared to very strong 2022 results, this value was 14% lower when net profit was at $832.6 million. The decline applies to all other main financial metrics, including operating profit, which stood at $336.4 million, and earnings per share, which fell from $3.77 to $3.12.

EBITDA stood at $340.5 million, falling significantly from the $453.8 million reported a year earlier. However, Plus500, in its report does not focus on the decline in dynamics in 2023 compared to 2022 but instead writes about "another strong year" and "lean and flexible cost base," which allowed it to significantly exceed analysts' expectations for results, which at the beginning of the year were at the level of $645 million in revenue and $300 million in EBITDA.

Over 90,000 New Customers

The company managed to maintain high dynamics in acquiring new customers. In 2023, 90,944 retail investors joined the group of people using Plus500's services. Although this was less than in 2022 when the company acquired a record number of nearly 107,000 customers, maintaining high results was possible "by the continued investment in the Group's diversified marketing approach."

The number of active customers remained above 230,000, and the average profit per customer was $3,116, with an average customer acquisition cost of $1,489. These values remained very close to those from 2022. However, the average deposit per customer increased, reaching a record annual level of $10,300, compared to $8,000 reported a year earlier.

"In 2023, we achieved a record high average deposit per Active Customer, reflecting our focus on higher value customers and the strength of our technology," Plus500 summarized in its report.

Recently, the company initiated a $100 million share buyback program following the completion of a $60 million buyback. The purpose of the repurchase is to enhance shareholder returns. Plus500 shares have increased 8.5% in 2024.