Q3 Performance of Plus500: Revenue Jumps 5% QoQ despite Yearly Fall

by Arnab Shome
  • The broker added 20,640 new customers in the quarter.
  • Its EBITDA came in at $80.3 million.
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Plus500 (LON: PLUS) closed the quarter, ended on September 30, with total revenue of $168.1 million, 5 percent higher than the previous quarter but 14 percent down year-over-year. Its trading income was $153.7 million, while it generated the remaining $14.4 million from interest.

Q3 Financials of Plus500

According to the trading update today (Tuesday), the EBITDA of the London-listed broker reached $80.3 million, which improved 10 percent from the second quarter of the ongoing year but declined 21 percent from the same period last year. The EBITDA margin of 48 percent also followed a similar trend with a gain of 4 percent quarter-over-quarter and a drop of 8 percent year-over-year.

plus500
David Zruia, CEO of Plus500

"I am pleased to announce that Plus500 continued to perform well during the third quarter of 2023, driven by our focus on higher-value customer acquisition, geographic expansion, and product innovation, despite lower volatility and trading volumes across the global financial markets," said David Zruia, the CEO at Plus500.

"The Group continues to make good progress against its strategic plans with the expansion into the US, Japan and the UAE markets."

Customer Metrics

Regarding the operational metrics, the broker added 20,640 new customers between July and September, dropping 7 percent from the last quarter and 13 percent from Q3 2022. The active customer figure at 118,501 lessened by 4 percent and 12 percent, respectively.

Meanwhile, the customer income grew 5 percent to $153.6 million. While the average revenue per user improved 8 percent quarter-over-quarter to $1,418, it diminished 2 percent from the previous year. The average user acquisition cost also dropped to $1,398, down 14 percent and 13 percent, respectively, in the two key comparable periods.

Q3 metrics of Plus500
Q3 metrics of Plus500

Outlook Remains Same

In the trading update, Plus500 highlighted that it anticipates delivering the revenue and EBITDA for FY 2023 in line with market expectations, which are $645 million and $300 million, respectively.

"Despite the lower market activity levels seen during the period, Plus500's ability to attract and retain higher value customers continued, enabled by its technology, broad product offering, innovative customer solutions, and retention initiatives," the broker stated.

Plus500 (LON: PLUS) closed the quarter, ended on September 30, with total revenue of $168.1 million, 5 percent higher than the previous quarter but 14 percent down year-over-year. Its trading income was $153.7 million, while it generated the remaining $14.4 million from interest.

Q3 Financials of Plus500

According to the trading update today (Tuesday), the EBITDA of the London-listed broker reached $80.3 million, which improved 10 percent from the second quarter of the ongoing year but declined 21 percent from the same period last year. The EBITDA margin of 48 percent also followed a similar trend with a gain of 4 percent quarter-over-quarter and a drop of 8 percent year-over-year.

plus500
David Zruia, CEO of Plus500

"I am pleased to announce that Plus500 continued to perform well during the third quarter of 2023, driven by our focus on higher-value customer acquisition, geographic expansion, and product innovation, despite lower volatility and trading volumes across the global financial markets," said David Zruia, the CEO at Plus500.

"The Group continues to make good progress against its strategic plans with the expansion into the US, Japan and the UAE markets."

Customer Metrics

Regarding the operational metrics, the broker added 20,640 new customers between July and September, dropping 7 percent from the last quarter and 13 percent from Q3 2022. The active customer figure at 118,501 lessened by 4 percent and 12 percent, respectively.

Meanwhile, the customer income grew 5 percent to $153.6 million. While the average revenue per user improved 8 percent quarter-over-quarter to $1,418, it diminished 2 percent from the previous year. The average user acquisition cost also dropped to $1,398, down 14 percent and 13 percent, respectively, in the two key comparable periods.

Q3 metrics of Plus500
Q3 metrics of Plus500

Outlook Remains Same

In the trading update, Plus500 highlighted that it anticipates delivering the revenue and EBITDA for FY 2023 in line with market expectations, which are $645 million and $300 million, respectively.

"Despite the lower market activity levels seen during the period, Plus500's ability to attract and retain higher value customers continued, enabled by its technology, broad product offering, innovative customer solutions, and retention initiatives," the broker stated.

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